BY JOHN HOUANIHAU
The Temotu Provincial Government has significant financial and administrative challenges relating to the province’s Youth Hub Centre fund, says Premier Stanley Tehiahua.
A $3 million grant agreement to construct Temotu Province’s first-ever Youth and Children Resource Centre was signed in 2021 between the Ministry of Women, Youth, Children and Family Affairs (MWYCFA) and the Temotu Provincial Government.
However, in an interview, Premier Tehiahua said the Youth Hub fund was later diverted by the previous administration as a temporary measure to address delays in the release of shipping grant funds intended for the province.
He said that the Youth Fund was borrowed for the Shipping Project, when a $5 million shipping grant was delayed during the previous government’s term.
He further adds that $3 million from the Youth Hub fund was borrowed with the understanding that it would be reimbursed once the shipping grant was received.
“It is understood that $1.4 million was paid as a down payment for a new vessel (LC Temotu) in Jakarta, Indonesia. However, the transaction reportedly involved a shipping broker who was later identified as a scammer.
“However, upon inspection in Jakarta, a team of eight crew members discovered that the landing craft did not meet Solomon Islands maritime requirements under national maritime regulations. The vessel required significant refitting before it could sail.
“The crew remained in Jakarta for several months to carry out the refitting work, leading to escalating costs. Crew allowances, paid in US dollars, increased daily during the extended stay,” he said.
He said that despite the setback, the vessel was eventually purchased and has arrived in the country.
“Approximately SBD $3.8 million in crew allowances remained unpaid. Around SBD $100,00 out of SBD $200,000 was outstanding for refitting expenses. Total inherited liabilities were estimated at more than SBD $4 million, with new claims later increasing the figure to over SBD $5 million,” he said.
He said that the total cost of the LC Temotu vessel is believed to exceed $12 million from $5 million from the national government through the Ministry of Infrastructure Development (MID), $1.5 million from the People’s Republic of China (PRC) through the Ministry of Rural Development (MRD), and other provincial contributions, including funds drawn from the Youth Hub grant.
“As a result of the financial strain caused by the vessel project, the Youth and Children Resource Centre have yet to be implemented. The balance remaining in the youth account is reportedly less than $100,000,” he said.
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