By EDNAL PALMER

Solomon Islands tax payers have paid out SBD$32 million in compensation to Levers Solomons Limited (LSL) in the past two years.

The Ministry of Finance and Treasury (MoFT) revealed the substantial payouts during this week’s Public Accounts Committee hearing into the 2023 Supplementary Appropriation Bill 2024.

Twenty million dollars was paid out in 2022 according to the Accountant General and a further $SBD12million was paid out last year –  totalling the payout from state coffers to SBD$32 million.

Further payment in millions is still to be made, pending ongoing negotiations by SIG with LSL according to the Accountant General.

“As a result of the delays in payments, there was a huge interest incurred over time and that could bring the total payment up to $60 million. 

The compensation payment emanated from a court order that was upheld after the government’s application to suspend the court’s earlier enforcement order to pay LSL $50 million in compensation for the use of its land at Alligator Creek, east of Honiara.

Despite the High Court’s enforcement orders, the government has avoided paying the debt, resulting in the accumulating interests.

The Accountant General told the committee that ongoing negotiation has resulted in some form of agreement, resulting in the SIG paying the $20 million in 2022, and $12million last year.

In lashing out at the government over such avoidable payouts, the concerned chairman of the PAC and Central Honiara MP Gordon Darcy Lilo said tax payers are footing the expenses and not the government.

“The Government source money from tax payers. Wealthy tax payers can get away with it but what about the poor tax payers? 

“What has happened to our wisdom and ability to litigate fairly and equitably on behalf of the tax payers of this country? Lilo questioned.

PAC further grilled the ministry on where the money for the compensation payment came from. 

The accountant general said the payments came from the general budget support. 

“It came from reserves that government maintains as a buffer. The thing about this payment is that it was not appropriated for, so we have to seek the authority to get that funding and expend it for this purpose. It came from various donors and tax payers.”

Wong confirmed to In-depth Solomons today he met Tovosia’s delegation.

However, said:

“I cannot say much about our meeting because the parties all agreed that terms of the meeting was confidential.

“But I can confirm that the meeting took place on Friday 6th September 2024.”