TSI calls for stronger transparency, accountability and reforms in Solomon Islands’ extractive sector
Transparency Solomon Islands (TSI) observed with interest the Coalition governments reform approach for change in the country’s governance system. Obviously, the month of June has become a defining month for governance in Solomon Islands’ extractive sector. There are Issues raised by West Rennell landowners demanding compensation for environmental and financial losses, Government investigations into controversial mining activities and new fiscal reforms. TSI acknowledged that the country is witnessing renewed efforts to improve transparency and accountability in the management of natural resources.
These developments highlight a common concern that affects the interest of our citizens, customary resource owners and country. The biggest and most concerning issue is that mineral wealth of Solomon Islands’ is plundered by unscrupulous investors who pay no respect to the laws of Solomon Island. There is no transparency or accountability both from these investors and the responsible government ministries with regard to how much money was paid to country or these investors are paid for the resources.
Communities continue to seek justice and fairness as evident in the latest claim by landowners in West Rennell who have submitted claims totalling SBD 61.48 million against Asia Pacific Investment Development (APID) and Bintan Mining Solomon Islands (BMSI).
The claims cover alleged unpaid royalties and lease payments, environmental damage, marine pollution, loss of livelihoods and the costs of rehabilitating affected areas.
For many communities, these claims represent years of frustration over the social, environmental and economic impacts of resource extraction. This highlights the need for stronger protection for customary landowners.
TSI appreciates the bold and transparent steps currently taken by the current Coalition government to investigate these matters further. At the national level, Attorney General Gabriel Suri has ordered the release of documents relating to 33 bauxite shipments from West Rennell for examination by the Financial Intelligence Unit. TSI understands that a 14 days period was given to the Director of Mines, Christa Tatapu, (who is alleged to have a mansion at Jackson Ridge), requesting full disclosure of documents relating to the controversial 33 shipments. Whilst TSI commends the directive issued by the Attorney General Gabriel Suri, him being a former lawyer for the mining company (Asia Pacific Investment Development (APID) and Bintan Mining Solomon Islands (BMSI) raises issues of conflict of interest. TSI hopes this will not be used as a leverage by the company or anyone to withhold information or to selectively release information. TSI urges the Attorney General to recuse himself from any further involvement with this investigation.
The investigation whilst it is to examine whether the bauxite shipments complied with the law should examine more than this. An open, independent and transparent investigation is essential to ensure accountability and will strengthens public confidence in the way that Executive Governments manage, monitor the exploitation of Solomon Islands’ natural resources and the benefits arising from it for people and country Solomon Islands.
Recent developments concerning gold dealer licences highlight the need for greater transparency and consistency in the administration of Solomon Islands’ mining sector. Uncertainty over licensing decisions undermine the importance of clear legal processes and effective regulatory oversight.
Transparency Solomon Islands believes that any review or reform of the gold licensing regime must be conducted in accordance with the law, with decisions that are transparent, consistent and publicly accountable. This includes providing timely and accurate information to the public to avoid confusion and maintain confidence in government institutions.
The governments proposed establishment of a State-Owned Holding Company presents an opportunity to strengthen national oversight of the gold sector. However, any new institutional arrangements must be supported by strong governance frameworks, independent oversight and clear accountability mechanisms.
Ultimately, reforms to the mining sector should promote integrity, transparency, accountability, protect public interest and ensure that Solomon Islands’ mineral resources are managed transparently and fairly for the benefit of all citizens.
TSI commends the Executive Government’s latest move to close Tax Exemption loopholes within the Ministry of Finance. This is a welcome move and will contribute to government collecting the dues owed to government.
In another significant reform, Minister of Finance and Treasury Hon. Gordon Darcy Lilo has terminated all Memoranda of Understanding (MoUs) relating to tax exemptions in the mining, forestry and fisheries sectors with immediate effect. TSI congratulates the Minister for this bold move. For far too long the investors in this sector have influenced decisions resulting in all accrued benefits paid to them when it should be paid to Solomon Islands the owner of these resources.
This decision reinforces existing legislation. Tax exemptions are provided for in our legislation but most certainly not to be abused as these investors have done.
Ending exemption arrangements represents an important step towards protecting public revenue that will improve economic accountability and ensures that all resource companies operate under the same legal framework.
Taken together, these developments point to a broader shift towards strengthening governance across Solomon Islands’ extractive industries.
Lasting reform will require more than investigations and policy announcements. It must be backed by consistent action with or from independent institutions that enables meaningful engagement with affected communities.
Transparency Solomon Islands believes that the country’s natural resources must be managed openly with great care and responsibility that serves public interest.
To build public trust and ensure Solomon Islands’ natural resources are managed responsibly and sustainably, TSI calls for the following:
- Independent, transparent and timely investigations into past mining activities and resource exports.
- Fair compensation for affected communities and the rehabilitation of environments damaged by extractive activities.
- Transparent, lawful and accountable administration of all mining and gold dealer licences.
- Strong fiscal governance that eliminates unlawful tax concessions and safeguards public revenue.
- Greater public access to information on mining agreements, revenues and regulatory decisions to strengthen public oversight.
- Continued reforms that embed transparency, accountability, integrity and meaningful community participation at the heart of natural resource governance.
Moving forward, the events transpired in recent weeks by the Coalition government in the mainstream media presents an opportunity to reset the governance of Solomon Islands’ extractive sector.
For reforms to succeed, they must move beyond policy announcements and deliver tangible outcomes for communities, they must have the capacity to strengthen public institutions and ensure that the country’s natural wealth contributes to long-term national development rather than short-term private gain.
Transparency, accountability and the rule of law remain essential if Solomon Islands is to build a resource sector that benefits present and future generations.
PRESS RELEASE
