Leader of Opposition Matthew Wale says Solomon Islands is losing out on the mining sector.
Speaking during the Public Accounts Committee (PAC) hearing, Wale said Solomon Islands is losing out because we are totally dependent on the miners.
“It is a total disappointment that we do not have the capacity to even ascertain the type of minerals, its volume and exact pricing because the miners have manipulated the whole mineral sector,” he said.
The Leader of Opposition expressed his disappointment to the CBSI Governor Dr Luke Forau when they appeared before the PAC this week.
Wale said the big issue that has led to a lot of theft in the logging sector was the transfer pricing and government has failed to fix it and now it is a serious concern in the mineral sector.
“The government is absolutely monopolised by the exporter. We cannot afford to repeat what is happening in the logging sector,” he said.
Wale told Governor Forau that CBSI needs to have the capacity independent from the ministry of finance to verify mineral prices.
The Opposition Leader has shared his disappointment that CBSI has no capacity to monitor and stamp down on pricing of minerals.
He said CBSI must be there to make sure finance is being honest because the ministry have never been honest.
Wale said even the budget allocation does not reflect the significance statement made by the government that the mineral sector is the next big thing for Solomon Islands.
“This sector needs huge investment,” he said.
Governor Forau has acknowledged the Opposition Leader’s concerns.
He acknowledged that CBSI has suspected that transfer pricing is happening in mineral sector although there are no evidences available.
Governor Forau said CBSI is working with customs and IRD to get to the bottom of the issue.
“Government needs to come up with a policy to enforce areas that need attention. If not done right it will be worse and we will be left high and dry,” the CBSI governor said.
Governor Forau said the ministry responsible should be accountable to do monitoring on the ground before every exports to ascertain the type of minerals, volume, exact pricing of exports and to inform CBSI to act upon.
He said this is not the case.