PERMANENT Secretary (PS) of the Ministry of Finance and Treasury has been surprisingly removed for delaying Members of Parliament’s (MP) $400,000 terminal grant it was disclosed.
Information reaching the paper said Shadrack Fanega was removed from being the PS of Finance and Treasury and replaced by Fred Fakari’i who used to look after the Ministry of Home Affairs.
It was reported the reshuffle was made last Friday and Mr Fakari’i began his new role as PS finance starting yesterday.
The reason(s) behind the reshuffle remains unclear as numerous attempts by the paper to get clarification from the Public Service Commission (PSC) on the latest reshuffle was not possible on Monday.
However it was reported the delay in the payment of outgoing MP’s terminal grant of $400,000 was the reason for the reshuffle.
A close source to this paper revealed that Mr Fanega has been pressured by the outgoing government to approve the payment as soon as possible.
However it was revealed Mr Fanega has been seeking legal clarifications into the approval of the $400,000 to MPs from the Attorney General.
It was also reported that since the government has faced financial difficulties, the PS has been strict on government spending by approving funds to priority areas which was believed to have angered the Caretaker Government.
The source said the reason for Fanega’s decision to seek legal clarification sparked from the decision of the Parliamentary Entitles Commission (PEC) proper in February this year when it only approves $200,000 for MPs terminal grant and not $400,000.
The $400,000 was actually approved by Cabinet after PEC’s first meeting which consists only of the chairman, Rick Hou and Douglas Ete who are members of the commission on advisory roles.
Therefore when the PEC proper did meet for the second time, it ceme up with the decision to approve only $200,000 instead of the $400,000, the source said.
“The reason being it sees the first decision made by the improper PEC as illegal since it was not the PEC proper that makes the decision and also that it is a conflict of interest since Hou and Ete are recipients of the payout.”
It was understood the PEC proper’s advices from the Central Bank of Solomon Islands and the Government’s economic reform unit is that the amount is too much since the government’s financial position is not looking good.
That decision was made before the closure of the Gold Ridge Mine and the April floods which has put the government finances in an even more crucial position than before, it was further revealed.
And while the sudden reshuffle stunned the public, fingers have been pointed to the Office of the Prime Minister and Cabinet.
Another close source to this paper said, the Caretaker government is trying to make way for the payment of their $400,000 terminal grant to be done anytime soon since former MPs are so desperate indeed for that money for their campaigns.
When this paper contacted the new finance PS Mr Fakari’i on Monday, he told one of his officers to pass on the message that he was busy and can’t talk.
The Attorney General Billy Titiulu,when contacted to make clarification on the legality of the issue, on whether the payout is legal or not, declined to speak to this paper since the paper does not want to reveal its source.
Mr Fanega could not be contacted since he is currently overseas attending the International Monetary Fund’s (IMF) annual general meetings in Washington DC. He is expected back in the country this weekend.
However from information accessed on the social network face book page of Forum Solomon Islands International (FSII), Mr Fanega was quoted as saying he was aware of the move and was expecting that to happen.
Meanwhile the news did not go down well with some of the donors who feared the reshuffle would have a negative impact on the government’s financial decisions.
Mr Fanega has been one of the most respected public servants who had served the government well for many years in looking after the country’s finance.
By DANIEL NAMOSUAIA
