Investigation so far into 33 bauxite shipments exported from Rennell Island has uncovered years of missing, incomplete and unaccounted-for Government records, raising fresh questions over how the country’s mineral resources were managed.
The findings are contained in an update Attorney General Gabriel Suri provided this afternoon.
“Investigations so far have found that key records covering the exports between 2019 and 2021 are either missing, incomplete or cannot be accounted for,” Suri said.
Chinese company Asia Pacific Investment Development Ltd (APID) and its contractor Bintan Mining SI Ltd (BMSI) engaged in the controversial mining operation on Rennell.
Most significantly, Suri said investigators have found no Central Bank of Solomon Islands records confirming payment for the 33 shipments, despite claims by the companies that the payments were made.
The findings could deepen scrutiny of the controversial Rennell bauxite exports, which have raised questions over unpaid royalties, export permits, mineral values and the Government’s oversight of the industry.
11 permits found
According to Suri, consignment permit records for 2019, 2020 and 2021 are missing or incomplete, even though bauxite exports continued during those years.
“Only about 11 consignment permits relating to the 33 shipments made in 2019 and 2020 have so far been located,” he said.
Suri also clarified an important point about the alleged unpaid royalties.
He said the royalties relate to the 33 shipments made between 2019 and 2020, rather than exports from 2017 to early 2019 as was initially alleged.
At that time, Manasseh Sogavare was prime minister, while Bradley Tovosia was Mines minister.
Investigators also made disturbing discoveries.
“The Central Bank has no records showing payments by APID or BMSI for the 33 shipments between 2019 and 2020,” Suri said.
“This is despite correspondence from APID and BMSI to the Ministry of Mines claiming the payments had been made.
“Investigators have also failed to locate a single refinery certificate or assay report for the shipments.
“That means there is no independent Government record confirming the quality, grade or value of the bauxite that left Solomon Islands.”
For a mineral export, that missing information is critical.
Without independent assay results, it becomes difficult to establish whether the mineral was correctly valued and whether the Government received the royalties and other payments it was entitled to.
Suri said Customs records are also incomplete, with additional documentation still unaccounted for.
“The investigation found no Memorandum of Understanding or supporting correspondence in Government files relating to the bauxite exports.
“There is also no legal advice or correspondence from the Attorney General’s Chambers at the time explaining the legal basis for the arrangements.
“Investigators have further found that the general authority or approvals that should have been issued by the Central Bank of Solomon Islands for the exports were never obtained by the Ministry of Mines, or at least cannot be found in Government records.
“The investigation also found no written justification, directive or legal opinion explaining why export permits continued to be issued year after year,” the attorney general said.
Officials who held positions at the time were questioned.
But Suri said none could produce documentary evidence or a credible explanation for why the permits continued to be issued.
“This is not bureaucratic misfortune.
“It is the documented record of a mineral sector that previous governments allowed to operate for years without the basic paperwork accountability requires.”
Suri explained the investigation had uncovered:
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permits issued without a documented justification;
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royalties and export volumes without independent verification;
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incomplete Customs records;
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missing Central Bank approvals;
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no refinery certificates or assay reports; and
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a paper trail that, in some cases, simply stops.
Suring pointed out that the investigation is continuing.
He said officials involved in the administration of the bauxite exports will be called to account as investigators seek to establish what happened to the missing records and why required procedures were apparently not followed.
