BY NED GAGAHE
Chairman of the Solomon Islands Postal Corporation (SIPC), James Apaniai disclosed that the organization has not turned a profit since its establishment as a State-Owned Enterprise (SOE) in the 1990s.
He shared this revelation when appearing before the Bills and Legislation Committee in Parliament regarding the SOE (Amendment) Bill 2024 in Parliament last week.
During the hearing, the Solomon Islands Broadcasting Corporation (SIBC) Chief Executive Officer Johnson Honimae shared similar sentiments with the Committee stating that this is one of the reasons why government has removed them from the schedule of the SOE Act.
“My friend, SIBC, has mentioned that they have not made any profit since they were incorporated. And I’m sad to say that SIPC is in the same boat. And it is likely we might join this team in removal from the schedule.” Chairman Apainiai said.
He said despite this the Postal Corporation is trying its best and is now in the process of proposing new ideas how to become profitable.
The Chairman said under the present Act SOEs are given the mandate to run businesses and to run them in a profitable manner.
“Under the existing act, as I said earlier, SOEs are allowed to run businesses. And the understanding was whatever business they run must relate to their core business. So that’s one of the understandings that we have relating to the SOEs powers to run businesses.” He said.
The Chairman during the hearing has expressed both support and concerns on the propose amendment.
“But yes, we are generally happy with the proposed changes.
“As I said, there is not much difference, substantial difference between the old one. I mean the present; I think the proposed new ones. Except in certain areas.
“And getting in line with what my other colleagues have said. I have already mentioned. Those major changes are for us, for the corporation.” He said.
SIPC is a state-owned enterprise established by an Act of Parliament in 1996 to provide postal services within Solomon Islands and to other countries.
As a state-owned enterprise, it is also subject to the State-owned Enterprises Act 2007 and State-owned Enterprises Regulations 2010.
SIPC is governed by a board of directors that is responsible to the Accountable Ministers, being the Responsible Minister and the Minister of Finance.
The Responsible Minister is the Minister for Communication and Aviation, currently Minister.
According to its website SIPC received SBD1.9 million in 2015, 2016 and SBD2 million in 2018 and 2019 on Community Service Obligation (CSO) payments.
While in 2017 there were no CSO payments to SIPC.
These CSOs are for the provision of postal services to 8 provincial post offices (Auki, Buala, Gizo, Kirakira, Lata, Munda, Tulagi and Taro).
The CSOs were subject to a contract with the Ministry of Finance.
