Western Province has once again been disqualified from the Provincial Capacity Development Fund (PCDF) program for the current financial year.
This was confirmed by the province’s Provincial Secretary, Patrick Toiraena, in an interview with the Solomon Star last week.
According to recent reports, Western Province has failed to meet the minimum conditions outlined in its financial assessments for the years 2021 and 2022.
A significant issue cited was the inability of the Western Provincial Investment Corporation (WPIC) to produce consolidated financial statements, which has hindered compliance with PCDF requirements.
Toiraena explained that the lack of audited financial statements from WPIC has created complications.
“The requirements for the financial statements of WPIC to be consolidated with those of Western Province have not been met.
He added, the financial statements for 2021, 2022, and 2023 have already been audited, but WPIC’s accounts remain unaudited.
He highlighted that when the current government – ACAREA came into power, one of its primary tasks was to produce the financial statements for WPIC for the years 2019 to 2023.
However, issues arose because many auditors were unavailable due to other commitments.
“The advice was to affiliate with audit teams to the Auditor General, but this has not happened,” Toiraena noted.
As a result of these challenges, Western Province was unable to meet the fourth minimum condition required for PCDF eligibility.
Toiraena advised that by the end of March, efforts should be made to submit the consolidated financial statements to the Auditor General by June 23.
He mentioned that the same conditions would apply for the upcoming year.
“The government already take the first step by producing the financial statements, followed by auditing by the Auditor General for the 2023-2024 assessment,” he said.
“Once we meet the minimum conditions four and submit the financial statements in time, we can work towards compliance,” he said.
Toiraena also pointed out that unlike other provinces that have integrated their investment arms into commerce and investment divisions, Western Province, under the leadership of its Premier, has opted to keep WPIC as a separate entity.
“This decision means they must continue to meet other financial statement requirements,” he added.
The ongoing challenges highlight the need for improved financial management and coordination within Western Province to secure future funding and support from the PCDF program.
By ULUTAH GINA
Solomon Star, Gizo
