Leader of Opposition Matthew Wale says government procurement and contracting has always been a serious leak successive governments have always ignored.

Speaking in Parliament during his response to the Speech from the Throne, Wale said almost all government contracts are excessively priced. 

“Some of this is undoubtedly corruption. Repair contracts, road contracts, bridges, airports, supply of materials, etc, are all tainted with unjustifiable excessive contracts,” he said.

The Opposition Leader said kick-backs to some public officials involved in procurement decision-making are a problem. 

He said this points to government’s procurement system being ineffective. 

On paper, Wale said the characteristics of a sound procurement system are always there. 

Yet he said we always end up with these unjustifiable excessive contracts. 

“We need SIICAC to work to address this big problem. We know it’s happening, but it seems there is no interest to address it. Why not?” Wale questioned.

“Of course not all excessive contracts are due to corruption.” 

Wale said contracting under IFIs are also excessive resulting in larger than necessary borrowing and interest costs.

“I have seen some guestimates that have put governments contracts priced at six times what would otherwise be the true economic value of such contracts. 

“I once confronted a representative of an IFI on this issue, and was dismissed on the ground that Solomon Islands is an expensive development destination. 

“This is an outright lie. We have been fed a lie, and our government has swallowed it whole. And our government has enabled it to continue. 

“I have voiced my concern on this matter on a number of occasions, but it seems government does not take it seriously,” he said.

The Opposition Leader said hundreds of millions of dollars that should be financing the delivery of better quality services to the people are being siphoned away in such excessive contracts. 

“Sadly, I do not see government taking them seriously,” Wale said.