Transparency Solomon Islands commends the Auditor General David Dennis and his audit team for the successful completion of the COVID19 series of audit under the Government’s Letter of Intent to the International Monetary Fund (IMF) and calls on the Solomon Islands Independent Commission Against Corruption (SIICAC), the Leadership Code Commission (LLC) and all relevant state integrity agencies for a collaborative action to instigate an investigation into the fraud and abuse of public funds uncovered by the recent Auditor General’s Audit Report on an audit of the Solomon Islands Government Economic Stimulus package (ESP).
At what stage is stealing and plundering of public funds deemed serious enough for investigation and prosecution?
During launch of the ESP, the then Prime Minister declared it as a “demonstration of the Government’s commitment to address the negative economic fallout of the pandemic…as preliminary predictions from CBSI and Ministry of Finance indicate COVID19’s considerable negative impact” on the country’s economy.
Whilst the ESP undoubtedly helped ease the ‘fallout of the pandemic on some businesses’ the whole scheme was an opportunity for corrupt officials to exploit an already weak system as exposed by the ESP Audit Report.
After all the hard work carried out by the Office of Auditor General, Audit reports are shelved and left to gather dust somewhere.
Some members of Parliament even alleging shock and disbelief following the release of the audit reports.
Enough is enough, citizens deserve better, citizens need to see change.
Citizens are tired of hearing about mere shock and disbelief from their representatives exercising the people’s power.
During the recent synchronized election, ‘change’ was a message echoed by all. It is time to walk the talk, the citizens of Solomon Islands want to see change.
TSI calls on the government for legislative reform. Relevant laws must be reviewed and amended to ensure that (i) the Office of the Auditor General can refer cases of abuse and misuse of public funds for investigation and prosecution and (ii) it is mandatory for the Minister responsible to present audit reports in Parliament for debate.
The Office of Auditor General has carried out its legally mandated role, what will happen next?
How many more audit reports is needed by the government to push for this much needed reform.
On 10th May, Prime Minister Manele stated that the GNUT government’s 100-day policy will amongst others, focus on review and immediate actions to recover the economy.
Further stating “that is a priority, and improving revenue collection, to ensure that government revenues are collected…and measures are to be put in place to minimize our leakages.”
The ESP Audit Report exposed a system that can easily be manipulated, there is lack of transparency and accountability, reports provided to members of Parliament are ignored and not presented and tabled for debate, unexplained wealth exposed, but will it yet again be ignored?
The Audit Report highlighted the many weaknesses and failures that absolutely hinders efficiency of properly administering the controversial $309 million Economic Stimulus Package (ESP).
It highlights lack of legislative or procedural guidance for issuing grants on such a huge scale, exposing a system shrouded by fraud and corruption.
If the GNUT Executive Government is genuine in its efforts to recover the economy, the recent Audit Report (including past Audit Reports) deserve further strong investigation.
The Prime Minister also stated on 10th May that “on the domestic front, the recent report by the Central Bank of Solomon Islands (CBSI) on the state of our economy is concerning.
The Government for National Unity and Transformation is cognizant of this and will take a more focused and aggressive approach to addressing our economy.
It is not an easy task, and we will be reaching out to all relevant stakeholders, including the private sector, as we move forward.’’ TSI note and acknowledge GNUT’s aims, and calls for review of relevant laws empowering the Auditor General.
When the ESP was introduced, TSI urged the Executive Government-ESP Committee to provide much-needed facts on ESP, calling for transparency and accountability.
In response the permanent secretary for the Ministry of Finance stated that the article by TSI was misleading.
Ensuing statement from PS Dentana as issued by GCU Press in August 2022 referred to the soon to be released ESP report, stating that it “will be presented to Cabinet and onwards to Parliament and will also be released to the Public.”
However, according to the Audit Report, the “MoFT also undertook evaluation of the ESP…and prepared ten evaluation reports. The reports were provided to Members of Parliament, but have not formally been tabled in Parliament, nor made public.”
Time and again the numerous Audit Reports provided by the Office of Auditor General exposed misconduct in office contrary to the Public Financial Management Act yet responsible officers are let off scot-free. Serious issues and matters of concern raised by the ESP Audit Report should not be ignored any more, conflict of interests, lack of transparency and accountability where fund is paid through constituency account, fraud and so forth resulting in millions of dollars unaccounted for, example “grants totalling over $33 million to farmers and other small agricultural enterprises…were signed for by government officials on behalf of beneficiaries without documented authorisation, including payments totalling over $6 million being signed for by one officer.”
This should not be swept under the rug and treated as business as usual.
Strong disciplinary measures against government officials must be carried out. It is sad to note from this Audit Report that small businesses and farmers being victims of corrupt officials.
Lest we forget, the ESP is only one portion of mismanaged public funds, the Constituency Development Fund (CDF), Shipping Grants and Transport Grants and MPs Medical Scheme under Mustard Seed are some controversial schemes that sees public funds expended without transparency and accountability.
Current legal requirements limit the Auditor General’s role once a report is produced, this needs to change.
The recent ESP Audit Report speak for itself.
Therefore, Transparency Solomon Islands calls for legislative reform to relevant laws to (i) enable Office of Auditor General to refer cases of misuse and abuse of public funds for investigation and prosecution and (ii) mandatory requirement on responsible Ministers to present and table Audit Reports in Parliament for debates.
– Transparency Solomon Islands (TSI)