Honiara, Solomon Islands – The Parliamentary Opposition Group has rejected the Government and Attorney General’s explanations surrounding the registration of Solomon Islands Mineral Holding Limited (SIMHL), saying they raise serious questions about process, due diligence, legal authority and parliamentary scrutiny.
There is no such thing as a minor administrative mistake when dealing with the mineral wealth of Solomon Islands and the interests of its people.
SIMHL is not an ordinary private company. It is proposed as a vehicle for the State to participate in the country’s mineral resources. Such an undertaking requires proper legal authority, due diligence, scrutiny and a clear governance framework before the corporate structure is put in place.
AN UNACCEPTABLE “MISTAKE” FROM A GOVERNMENT OF THIS SIZE
The Opposition said the explanation of an administrative error is difficult to accept given the resources and expertise available to the Government.
“This is a Government with 58 political appointees, a full Cabinet and the full machinery of Government at its disposal. It also has a veteran lawyer serving as Attorney General. How does an undertaking involving the country’s mineral wealth get registered with significant errors and before Parliament has even deliberated on the proposed framework?”
The Opposition said correcting the Company Haus records may correct an entry, but it does not answer the more important questions of how the errors occurred, who authorised the registration, what legal advice was obtained and what due diligence was undertaken before the company was incorporated.
THERE IS NO APPROVED LEGAL FRAMEWORK YET
The Government initially described the incorrect Company Haus entries as an “honest administrative mistake”. However, the Attorney General has since explained that SIMHL was deliberately registered in anticipation of amendments the Government intends to make to the Mineral Resources Bill.
The Opposition said this explanation makes the matter more concerning.
“SIMHL was deliberately registered in anticipation of a provision contained in the Government’s proposed amendments, yet Parliament has not even deliberated on those amendments, let alone passed them. That is putting the cart before the horse.”
Whereas previous state entities like Solomon Tower Limited were created to manage already-authorized public infrastructure, SIMHL’s registration attempts to establish a corporate structure before Parliament has even passed the enabling laws required for its existence.
The Opposition said the provision establishing SIMHL was not part of the Bill as previously developed but is being introduced through the GREAT Government’s proposed amendments.
“Parliament should be allowed to scrutinise and decide on the proposed amendments before the Government proceeds with the corporate structure”.
THE TIMING REQUIRES EXPLANATION
The Opposition said the timing of the incorporation cannot simply be dismissed as an administrative matter.
The company was incorporated before Parliament had the opportunity to consider the proposed amendments and before the legal and governance arrangements for the State’s participation in mineral resources had been settled through the legislative process.
The Government must therefore explain who authorised the incorporation, the legal basis on which it was undertaken, what legal advice and due diligence were obtained, and why the company was registered before Parliament had considered the proposed amendments.
The Government must also explain why the Prime Minister and two Ministers were initially recorded as shareholders and what the final ownership and governance arrangements for SIMHL will be.
Most importantly, the Government must explain what safeguards will ensure that any company established to manage or hold the State’s interests in mineral resources remains accountable to Parliament and, ultimately, the people of Solomon Islands.
Correcting the Company Haus records does not resolve these questions.
THE OPPOSITION’S POSITION
Solomon Islands’ mineral resources are a national asset. Any structure established to manage, hold or participate in those resources must be created lawfully, transparently and through proper parliamentary scrutiny and due process, with the long-term interests of Solomon Islanders at its centre.
The Opposition will not accept the incorporation of a State mineral holding company as a matter already decided while Parliament has not yet had the opportunity to deliberate on the proposed amendments intended to establish its legal framework.
“The Government must account for the process, not simply correct the paperwork after the matter has been exposed. Solomon Islanders deserve a process that is transparent, properly scrutinised and conducted in the interests of the people.”
FORESTRY MINISTRY EXPLAINS RENTAL ARRANGEMENT
Meanwhile in response to this call, the Ministry of Forestry & Research has clarified the Opposition Leader’s statement concerning their rental agreement relating to the Prime Minister. The statement said the facts surrounding the arrangement must be placed in their proper context.
The tenancy agreement commenced in November last year, at a time when the Hon. Matthew Wale was still in Opposition and had not yet assumed the office of Prime Minister. It is therefore misleading to portray the agreement as a rental arrangement entered into by the Prime Minister in his capacity as Prime Minister. The Ministry of Forestry has clarified that the selection of the premises was driven by an urgent need for office space, including an office for additional project staff, as well as the availability of suitable premises close to the Ministry’s headquarters.
The Ministry has also confirmed that the rental rate was subject to the established process involving the accountable officer and the landlord, with compliance by the Government Housing Division and the terms of the Tenancy Agreement forming part of the process. Importantly, this matter is not new. It was raised before the Public Accounts Committee (PAC), where the circumstances surrounding the agreement were thoroughly explained. The PAC was informed that the agreement was entered into before Mr Wale became Prime Minister and that the tenancy arrangement is scheduled for review in October this year.
The Ministry has already provided the Tenancy Agreement, the relevant company extract, its occupancy schedules, including the rented premises currently accommodating around 15 staff, as well as available financial records. The Ministry has acknowledged that some additional supporting documents could not be supplied within the initial timeframe because of difficulties in accessing the records. It has committed to continuing efforts to source and provide the remaining documentation.
