Politicians get their first New Year’s gift from a cash-strapped SIG
POLITICIANS – perhaps not from all sides of politics – are about to get their biggest New Year’s gift yet – some $400, 000 each the first such payment for 2023, according to those familiar with the payment.
If the funding is shared by all 50 MPs, the total payout is $20 million. If it is shared by governments MPs only the payout amounts to $12.4 million.
One version suggests that the payment was made last Friday.
However, Solomon Star has confirmed with those closer to the Ministry of Rural Development (MRD) that Ministry officials began processing the payment on Tuesday this week, unless some got their payments early.
The funding is from the National Development Fund (NDF) and is intended for Constituency development. Its quarterly release is not due until March this year.
Given its release so early in the first month of the year suggests politicians may financially be in dire straits. Most, if not all look to the NDF as life-support.
Whether the money ends up as intended remains anyone’s guess.
It has also been revealed that the government has begun paying owners who lost their properties during the 2021 November riot in Honiara, according to sources close to Treasury.
One man who lost a property at Ranadi received a $2 million compensation – the highest payout, according to one source.
“That’s the highest payment in terms of payout. The rest of the payments are below that figure,” the source said.
It is unclear how many people have received payments for their lost properties. One man pointed out, whoever they are, it would simply be government cronies or the who you know business as usual.
According to the source, these two items of payments – the $400, 000 to each politician and compensation to owners who lost properties in the 2021 November riot – received the priority for payment in December over other payments.
“It’s the preoccupation for the last week of December as it was instruction from the government not to pay anything other than the two items,” the source said.
“This explains why payments of service providers, rentals and so on have been put on hold for this year.
It also explains why public servants could not take their annual leave in December because the government simply has no money to pay their leave entitlements,” the source said.
These are bills that will be added to new payments for services this year. Just where the government will get the money to pay for these is an interesting scenario, he said.
The Government last year announced a $200 million fund to address properties damaged or destroyed in four days of rioting in Chinatown, Kukum and Ranadi.
Damage to the economy was assessed at $800 million, according to the Minister of Finance and Treasury, Harry Kuma.
Mounting pressure on government revenue has left the matter in the doldrum until very recently. Unconfirmed reports suggest one individual whose house was partially damaged become the first recipient, collecting a $7 million payout.
By Alfred Sasako
