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USE OF SUFFERANCE WHARVES – PAST PRACTICES AND CURRENT TWISTS

by Rex Ramo
Honiara

In recent days, the local media have focused on two major developments: the Pacific Island Forum (PIF)  meetings in Honiara and the use of sufferance wharves. At the PIF meetings, Prime Minister Jeremiah  Manele reaffirmed the region’s unity and commitment to collective progress amid a rapidly evolving  global landscape.

The Prime Minister’s call for urgent action on climate change also demonstrated his  commendable leadership as he emphasized the importance of regional solidarity in the face of intensifying  global competition. “Our strength lies in our solidarity and how we are able to respond to challenges and capitalize on opportunities”. He also cautioned against the Pacific being seen as a mere arena for external  interests.  

Domestically, however, as head of the GNUT government, he now faces the responsibility to address the  sufferance wharf issue, which exposes the country to external and illicit trade risk, are non-compliant to  domestic laws, and led to the appointment of Honorable Trevor Manemahaga (MP), who has limited  experience in fiscal policy and government finance, as the new Minister of Finance and Treasury. 

Prime Minister Manele previously said that Cabinet reshuffles are normal governance measures aimed at  ensuring unity, political stability and effective service delivery. But what political instability will the  former Minister of Finance and Treasury cause in remaining as Minister of Finance and Treasury?

As Prime  Minister Manele will soon realize, the “status quo bias” approach of the new Minister of Finance and  Treasury, Hon. Trevor Manemahaga, is a misguided action. Since independence, the status quo bias  syndrome has been a key factor in why Solomon Islands remains relatively poor and undeveloped, in the  midst of abundant natural resources, compared to other smaller nations in the Pacific. The Minister’s action  will surely hinder the ability of the GNUT government to successfully implement its transformative  development agenda due to a lack of adequate financial resources.  

GNUT continues to face challenges in increasing domestic revenues. Fiscally, the government needs to  raise more revenues to fund the National Development Strategy (2016-2035) and address fiscal pressures  from restructuring of teachers’ salaries. The new Minister of Finance action in reversing previous measures  intended to close leakages and enhance revenue collection, raises serious concerns about the government’s  commitment to its development objectives. 

This article aims to provide an analysis of the use of sufferance wharves, historical practices, key  developments leading to the recent ministerial reshuffle, and the associated national implications. 

Sufferance Wharf definition and authority 

Section 2(1) of the Customs and Excise Act (Cap.121), defines a “sufferance wharf”, as “any place other  than an approved place of loading or unloading at which the Comptroller may, in his discretion, and under  such conditions and in such manner as he may direct, either generally or in any particular case, allow any  goods to be loaded or unloaded”, and “approved place of unloading” and “approved place of loading”  as “any quay, jetty, wharf or other place, including any part of an aerodrome, appointed by the Minister  by notice to be a place where coastwise or imported goods or goods about to be carried coastwise or  exported may be unloaded or loaded”. 

Legally, the Comptroller of Customs holds the discretion to permit operations at these sites, which are not  formally designated as international ports. However, such places must also be appointed by the Minister  by notice. In other words, both the Comptroller of Customs and the Minister of Finance and Treasury must  act in the national interest with appropriate conditions.

Past Practices and Conditions 

In the past, the use of sufferance wharves was strictly limited to loading of round logs for exports at various  locations throughout the country. Though this practice also has significant weaknesses, it was accepted  given the nature, costs, and difficulties in transporting round logs for exports at declared ports in the  country. Its weakness is due to a lack of thorough checking of log species and volumes for export by both  Forestry and Customs officials. This problem remains unaddressed to this day.  

The applicable conditions of loading logs at sufferance wharves include a formal application, accompanied  with specific documentation including the precise longitude and latitude of the proposed site, navigational  map (obtained from the SI Maritime Authority), valid felling license, valid log pond agreement with  landowners, and payment of business license from respective provincial governments.  

Sufferance wharf construction in East Honiara 

The increased use of sufferance wharves along the Honiara seafront began after 2010, as companies  transitioned from logging to mining operations. In October 2023, the former Comptroller of Customs Mr.  Peter Hughes reviewed these facilities following public complaints and found that all sufferance wharves  in East Honiara lacked proper approval from relevant authorities. Despite these findings, operations  continued without significant intervention. 

Sources familiar with the issue reported that neither the Development and Planning Boards of the  Guadalcanal Province nor the Honiara City Council had approved the construction of all sufferance  wharves around Honiara, especially in Ranadi and the Lunga area, and along the Red Beach seafront.  Available information showed that the operation of these sufferance wharves also defied the Environment  Act, 1998. On many occasions, the unloading of imported goods had continued unabated at these facilities  without the knowledge of responsible authorities. This posed a great risk to government revenues due to  improper checking of imports. Sufferance wharves also pose security vulnerabilities such as contraband  and drug trafficking, non-compliance with International Ship and Port Facility Security (ISPS) standards,  and potential for serious accidents from unsafe operating conditions, including poor lighting and uneven  surfaces. 

Environment Act 1998 requirements 

The Ministry of Infrastructure and Development (MID) also revealed that wharf and port development and  associated supporting infrastructures or facilities are “prescribed development” in terms of section 16(1) of the Environment Act 1998. Wharf or port development is also a category 9 development regarded as  public works under the Act. Hence, it is a statutory requirement under section 19(1)(b) of the Environment  Act for a development consent to be first obtained from the Director of Environment and Conservation  before commencement of such developments. 

In August 2024, the former Minister of Finance & Treasury, Hon. Manasseh Sogavare (MP), raised similar  concerns. He said that while GNUT recognizes the importance of business development to grow the  economy and provide employment opportunities for our growing population, it is absolutely necessary that  companies wishing to engage in such development activities also comply with the country’s laws.  

Ten Points Demand and Suspension of Sufferance Wharves 

The suspension of sufferance wharves by the former Minister of Finance & Treasury on 21st August 2025  was the best policy action the GNUT government minister had ever taken. The action was part of the  government’s actions to curb all sources of revenue leakages, and mobilize increased domestic revenues to  fund core components of the NDS 2016-2035, and the potential for fiscal pressures emanating from the  restructuring of the teachers’ salary levels. The former Minister’s action was also consistent with the ten point Letter of Demand that 16 GNUT members had signed in December 2024 and given to the Prime  Minister for action. They demanded the closure of all sufferance wharves, as it was a major source of  revenue leakages and importation of unwanted goods in the country. 

Ministerial reshuffle and misguided priorities 

During the Caucus meeting two weeks ago, Prime Minister Manele thanked both Ministers for accepting  the ministerial reshuffle. He explained that Cabinet reshuffles were normal parts of governance, aimed at  maintaining unity, political stability, and effective service delivery. However, what the Prime Minister had  forgotten and totally ignored is that effective service delivery only happens when government coffers are  at their brim and not when empty. The former Minister’s directive for the Acting Comptroller of Customs  to suspend all sufferance wharves, especially those operating in east Honiara, was purposely to curb illicit  trade, and patch one of the major sources of revenue loss that has plagued the nation over the years.  

With due respect, the Prime Minister’s explanation for the Cabinet reshuffle was economically misguided.  Since the onset of COVID-19 in 2000, Hon. Harry Kuma has been a key pillar in DCGA government’s efforts to revive Solomon Islands’ economy. He had a clear vision to do the right thing to resurrect and  regrow Solomon Islands’ economy. The Economic Stimulus Package, which Hon. Trevor Manemahaga  was implicated in misusing when he was working at PMO, was Hon. Harry Kuma’s brainchild.  

Two key issues for the Prime Minister to explain  

There are two crucial issues that Hon. Prime Minister must explain to this country. First, what form of  political instability does he see the presence of Hon. Harry Kuma’s as Minister of the Ministry of Finance would cause to GNUT government? Hon. Harry Kuma was the Minister of Finance and Treasury when  Covid-19 and the 2021 political unrest forced the economy under the water. With more than twenty-five years of professional work experiences, he had instituted appropriate economic and financial policies and  helped revive the economy. He knows that more appropriate measures are yet to be implemented, especially  the need to patch all leakages to government revenues. The suspension of sufferance wharves is one of the  identified key measures.  

Second, what good will Hon. Trevor Manemahaga advances to ensure the effective implementation of  GNUT’s transformative development agenda? The growing Solomon Islands economy needs an experienced  and foresighted politician as Minister of Finance and Treasury. Not someone that can easily be pulled by  the nose by outside interests. The recent Cabinet reshuffle was indeed a misguided decision that would  only further widen GNUT governments “budget hole”. Minister Manemahaga must not be surprised if  there is money available to fund his constituency projects in the months ahead. 

Reasons for removal of former Minister for Finance and Treasury 

Despite the government’s strong denial, sources close to the sufferance wharf saga revealed that the removal  of the former Minister of Finance and Treasury was orchestrated by the operators of both Goodwood and  Penquin sufferance wharves in East Honiara, with the support of their political masters within GNUT  government.

The plan to remove the former Minister of Finance and Treasury did not happen overnight. It  started after he approved the termination of Mr. Peter Hughes as Comptroller of Customs. Hon. Harry  Kuma terminated his contract following a ministerial review of his performance that showed poor performance,  total incompetence, lack of visionary leadership, and disregard for customs protocols in ensuring thorough  monitoring and checking of imported goods.

On one occasion, Mr. Hughes had allowed a foreign vessel to  proceed and discharge imported goods at a particular nickel mining site in the province without customs  clearance in Honiara or Noro. He then asked the mining company to transport customs staff at Noro to  travel during bad weather conditions to clear the vessel. On another occasion, he had allowed the export of  a mining consignment without customs clearance. The former Comptroller’s actions had put the lives of  customs officials at risk and resulted in loss of government revenues.  

Revocation of sufferance wharf suspension defied common sense and economic logic 

Less than a week after assuming political helm at the Ministry of Finance and Treasury, the new Minister  of Finance and Treasury swiftly acted on his premeditated orders and reversed the policy action aimed to  curb loss of government revenues. The new minister’s directive defied common sense and economic logic.  It only proved that GNUT is not a government by the people and for the people, but a government for  foreign business interests. Sources from the Customs and Exercise Division revealed that both Solomon 

Nickel Mining Company Ltd and TBC Hardware had heavy machines on MV Harmony Ocean 2504E that  arrived on 8th September. These were destined for unloading at Goodwood Sufferance Wharf at Ranadi.  Information obtained from the Company Haus registry showed that the former is owned by Johnny Lee Sy  and the latter owned by Harry Chen. Interestingly, Harry Chen also operates Goodwood Sufferance Wharf. 

Real reasons for Cabinet reshuffle and revocation  

When defending his decision, Prime Minister Manele said that there were no outside pressures for the  recent Cabinet reshuffle. Such decisions were normal governance measures to ensure unity, political  stability and effective service delivery.

However, he failed to explain how Hon. Harry Kuma’s presence at  the Ministry of Finance as Minister would cause political instability and disunity amongst the GNUT  government. The timing of the reshuffle, arrival of MV Harmony Ocean 2504E on 8th September, and the  swift revocation of the suspension of sufferance wharves have proved a totally different narrative. As  available informations have now revealed, the 11th hour Cabinet reshuffle was a strategic political hit  aimed at revoking the suspension of sufferance wharves so that all imported cargoes on MV Harmony  Ocean are promptly unloaded at Goodwood sufferance wharf as planned by both Johnny Sy and Harry  Chen. 

CARGO MANIFEST: MV Harmony Ocean

Progress is dependent on leadership 

In three years’ time, we will celebrate 50 years of political independence in 1978. What will we celebrate?  Yes, we have made some progress. But we could have achieved much more. By comparison, China was  a poor country when we gained independence. But after 46 years, it became a superpower and surpassed  the US in most key indicators of development. China’s strong economic growth, and improved living  standards was spurred by the 1978 market-oriented reforms based on its bold and visionary leadership.  

The GNUT Policy Statement said that “at the heart of our mission is strong and dedicated leadership that  focuses on addressing the socioeconomic challenges facing our nation. We recognize that the well-being  and progress of our people depend on decisive action and commitment. Our coalition is united in its  determination to confront these challenges head-on, fostering an environment of peace, cooperation, and  hard work. Our nation’s challenges may seem overwhelming, but we are resolute in our capability and  commitment to tackle them. We understand that continuing with a “business as usual” approach will not  suffice. Therefore, we are dedicated to implementing transformative policies that will diversify the economy  and move us towards a path for sustainable development and economic resilience”. 

The Prime Minister’s 11th hour Cabinet reshuffle which paved the way for the swift revocation of a policy  action aimed to curb a major source of revenue leakages proved that GNUT is a “business as usual” government. Its actions are contrary to its policy intentions. 

Status Quo hinders innovation and progress. 

The Prime Minister’s action to elevate his fellow MP from Isabel as the new Minister of Finance and  Treasury, despite his lack of experience, was a “business as usual” decision. Being the Minister of Finance  and Treasury in any country is no ordinary position. It is the soul, blood and heart beat of the nation. Such  erratic decisions would not transform Solomon Islands into what GNUT had intended. Solomon Islands  remain relatively poor and undeveloped, not because we lack good policies and natural resources. Our  problem is a lack of foresight and political will to implement strategic and visionary changes. We need to  mobilize more financial resources to implement and achieve the transformation that we all desire.  

The new Minister of Finance and Treasury explained that he had directed the Acting Comptroller of  Customs and Excise to revoke his predecessor’s suspension order because “the status quo must remain”. Solomon Islands need political leaders who are visionary, foresighted, and not afraid to make drastic  changes. China has now moved on, while Solomon Islands is still trapped in the circle of poverty as a result  of our leaders’ status quo bias syndrome.  

Burkina Faso, a landlocked country in West Africa with limited resources, is progressing and has already  attracted global attention. It’s progressing because its President, Captain Ibrahim Traoré has strategically decided not to maintain the status quo. If GNUT is to effectively implement its transformative development  policies, then this status quo bias must be done away with. Solomon Islands need more “Harry Kumas” in the Cabinet. Not leaders who easily shrink under pressure because foreigners demand that they maintain the  status quo for their own business interests. 

Minister Manemahaga accused Hon. Kuma of defying Cabinet’s decision

The new Minister of Finance and Treasury also said that his decision to lift the suspension of sufferance  wharves followed Cabinet’s directive of 3rd June 2025. He also accused his predecessor of suspending the  suffrage wharves without Cabinet’s approval. 

Information obtained from the Office of the Prime Minister (OPM) showed that the Cabinet did approve the  establishment of a special committee. Its mandate was to assess the status of sufferance wharves, what  consequential issues responsible government authorities should have taken following the declaration of  Leroy Wharf as an international wharf in December 2023, establish the legality of issuing sufferance wharf  licenses, determine the historical use of such facilities, what other relevant laws and compliance issues that  operators of sufferance wharves need to meet before issuance of a license, and penalties for noncompliance.  The Special Committee was also asked to establish whether imported goods can be offloaded at  noncompliant ISPS wharves, and determine the ramifications of SI using such facilities for international  trade purposes.  

The OPM source revealed that the Special Committee was to consult with relevant Government Ministries,  Non-Government Organizations, key private sector businesses, relevant stakeholders, and complete its  report within two weeks and submit its report to the Ministers responsible for Ports development and  Sufferance Wharves no later than 20th June 2025. 

During a time when the GNUT government needed increased revenues to effectively fund its transformative  development agenda, one would have thought that the best option was to close all sources of revenue  leakages, as Hon. Harry Kuma had rightly done so. The new Minister’s swift action in revoking the suspension  order not only contradicted the government’s policy intentions but also proved that GNUT does not care  about improving services to our people. 

As said above, the Special Committee was supposed to report to Cabinet no later than 20th June 2025. This  strongly suggests that the committee has now outlived its mandate and usefulness. The former Minister of  Finance and Treasury, does not need Cabinet’s approval to direct the Acting Comptroller to suspend the  sufferance wharves. This was an administrative matter within his jurisdiction, as minister of Finance and  Treasury, and under the discretionary powers of the Comptroller of Customs and Excise. 

Conclusion

The successful hosting of the 54th PIF meeting in Honiara will definitely boost Solomon Islands’ regional  image. Furthermore, as Chairman of the 54th PIF meeting, Prime Minister Manele’s regional standing is  also noted. However, to extend the work of a committee that has outlived its Cabinet mandate to the end  of October 2025 is highly insensitive and financially suspicious.

The “status quo must remain” strategy  was not only misguided but would also cost the nation in terms of low government revenues and increased  dissatisfaction due to poor service delivery throughout the country. 

As Mr. Tom Smith correctly said, Hon. Trevor Manemahaga’s “display of misplaced priorities and  questionable allegiance” and “dismantling a key policy designed to protect the Solomon Islands from  massive revenue leakages”, strongly suggests that GNUT is not a transformative government by the people,  and for the people, but a transgressive government controlled by foreign business interests like Johnny Sy  and Harry Chen. 

Contrary to what Hon. Trevor Manemahaga has said, the suspension of sufferance wharves does not stop  the implementation of national projects and operation of private sector businesses. The two ISPS compliant  international ports in Honiara are more than capable to handle the needs of these national projects and private businesses.

The operation of both Goodwood and Penquin implies that GNUT government is  supportive of illegal activities. Continued unloading of imported goods at Goodwood and Penquin not only  poses significant threat to our national security, but also violates our national laws. The operators of both  sufferance wharves do not have valid business licences, development consent, approval from HCC and  Guadalcanal Province, and do not have International Ship and Port Facility Security (ISPS) certification. 

ISPS code certification is a mandatory international requirement designed as a safeguard against security  threats such as smuggling, terrorism, and illegal trade trafficking. Operating Goodwood and Penquin  without ISPS certification are necklace, and a blatant breach of both national and international laws.  

Solomon Islands need a qualified, experienced and a visionary leader as Minister of Finance and Treasury.  Before Hon. Trevor Manemahaga reverses other economic policies to transform Solomon Islands economy  as GNUT government envisions, it is only fitting that he humbles himself and immediately resigns.

The Prime Minister’s key responsibility is to protect the nation’s interest against all forms of threats. His  appointment of Hon. Trevor Manemahaga as Minister of Finance and Treasury poses significant security  and economic threats to the national interests. If Hon. Trevor Manemahaga does not resign, then Prime  Minister Manele himself must resign and allow a more capable, experienced, seasoned, visionary and non vaporous leader to become Prime Minister.

Let us not treat the lives of the 740,000 people of this country as  “business as usual”. The national budget is worth protecting. Not your own pockets. 

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Disclaimer: The views and opinions expressed are solely those of the author and do not reflect the views of In-depth Solomons. We provide a platform for the author to publish his work, trusting that he has conducted his own research and fact-checking prior to publication, in the interest of informing the public.

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