BY IRWIN ANGIKI
OPPOSITION Leader Matthew Wale has criticised government over exposed ‘favouritism, incompetence and backroom dealing’ in its tax exemption.
This follows Island Sun’s report yesterday exposing a 100 percent tax exemption of 4.5 million litres of fuel granted to a business with known ties to GNUT by Finance Minister Rexon Ramofafia.
Mr Ramofafia had told Island Sun that he had revoked that tax exemption the next day. However, there is no official revocation instrument to support Ramofafia’s claim.
The tax exemption is estimated to deny government more than $6 million in tax revenue.
In response Mr Wale said, “Let’s be clear, you don’t ‘accidentally’ sign away millions in tax revenue. This was not a mistake. This was a political decision.”
He said Finance Minister Ramofafia’s claim that the exemption was “revoked the next day” only proves that “they acted first and reversed the decision after being exposed. It will not be a surprise a revocation letter will be back dated to cover their tracks”.
In a statement yesterday the Opposition Leader said the fact that this was done in secrecy to a lone fuel retailer who is a financier of GNUT as reported in the media is no surprise.
“There is no transparency, no justification and no benefit to the public. While Solomon Islanders are struggling to afford fuel, this Government was busy cutting deals for the well politically connected,” he said.
“When a politically connected player is handed massive concessions in the middle of a fuel crisis, the public is not stupid, they know exactly what this looks like.”
Wale also slammed the fact that the exemption was granted to a business name, not even a proper company structure describing it as outrageous and indefensible.
“Millions in public money handed to a business name? That is either gross negligence or deliberate manipulation. There is no middle ground,” he said.
Wale said the Government’s actions have distorted the market, unfairly disadvantaging other legitimate fuel suppliers.
“Do away with the favouritism towards political cronies. Honest businesses are paying full taxes while one ‘preferred’ player is given a free ride. That is not policy that is patronage,” he said.
The Opposition Leader warned that the biggest issue is not the cancellation but the intent.
“If this was not exposed, it would have gone through. That is the truth,” he said.
Wale said GNUT has shown it is willing to sacrifice fairness, transparency, and public revenue to benefit the few.
The Opposition Leader said the exemptions are not new traits by the current GNUT.
The last time the exemptions by the former finance minister Manasseh Sogavare were leaked by the current finance minister, it was a ploy to get him the top job.
“The public also deserves to know what other questionable exemptions was issued by the Finance Minister Ramofafia in secrecy,” Wale said.
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