The application, SINPF says, was also sent to two state-owned companies – Solomon Power and Solomon Ports.

“We are reviewing the application and doing our normal due diligence consideration,” SINPF said in a statement, issued in response to queries In-depth Solomons sent to them on the issue.

“We will be ready to respond to the application when a new government is in place after the 17 April 2024 national general elections,” the statement added.

“SINPF Board only invests where the investment is safe, and where it guarantees a high investment return for its members. 

“Government bonds traditionally offer a safe investment option that normally comes with the highest investment income interest that will grow the members’ funds.”

SINPF, Solomon Power and Solomon Ports are all government bond holders. In-depth Solomons has been unable to get comments from Solomon Power and Solomon Ports on this matter.

There’s been outrage on social media since last weekend when news of the the $140 million application was leaked.

Critics accused the Sogavare government of mismanaging the economy, resulting in the current serious cashflow situation.

They urged SINPF not to give in to the government’s request.

But SINPF assured its members that its priority is to manage their funds and to invest the funds in safe investment opportunities that will grow the members’ funds. 

“Government Securities is an approved key component of the Fund’s investment portfolio, annually earning good returns for our members. 

“For this financial year ending 30 June 2024 we will expect to receive a total interest income of more than $33.7 million from our more than $500 million government securities portfolio. 

“Currently our draft unaudited gross investments portfolio is worth just over SBD$4 billion.”

SINPF also explained that loans to state-owned-enterprises are also measured under government securities since they are guaranteed by the government. 

“Currently SINPF has exposures with Solomon Airlines (for the lease of their new 2^nd Airbus) and Development Bank of Solomon Islands (for lending to national business owners and SMEs).

“We’ve also invested in short term treasury bills tendered out by the Central Bank of Solomon Islands (CBSI) and in government development bonds. 

“Developments bonds are publicly and privately tendered by the government.  

“Proceeds of past developments bonds purchased by the board were used by the government to invest in the undersea submarine cable, various government’s COVID-19 stimulus packages, and other approved government’s development projects.

“The Central Bank of Solomon Islands secondary market facility provides an exit for development bond holders to negotiate and liquidate their bonds earlier when they need liquidity.”

SINPF said their current approved strategic asset class (SAA) allows them to invest in various assets locally and internationally.

These include:

1. domestic cash including bank fixed term deposits held under 12 months, 
2. government fixed income securities, 
3. domestic investment properties, 
4. domestic equities, 
5. international cash, 
6. international fixed income, 
7. US equities, 
8. European equities,
9. Australian equities, and 
10. 10) emerging market equities (which include PNG investments in BSP and Loloata Island Resort).