CEMA’s $77 million revitalisation programme in limbo as funding for DCGA’s flagship policy has been diverted to the Sol2023 Pacific Games
THE Democratic Coalition Government for Advancement’s (DCGA’s) $77 million revitalisation programme for the Copra Export Marketing Authority [CEMA] is in limbo after its funding allocation has been syphoned off to help boost the 2023 Pacific Games coffers, it was revealed over the weekend.
Funding the CEMA Revitalisation programme – dubbed the DCGA government flagship policy – was spread over a seven-year period (2021-2027), according to a decision made by Cabinet in May 2021.
It was intended to open a Copra Buying Centre in each of the nine provinces.
To date, however only two buying centres were re-opened – one in Kirakira, Makira-Ulawa Province and the other in Malu’u, Malaita Province last year. The Malu’u Centre was intended to address security and lawlessness along the Northern Corridor.
With much of the funding being diverted to the 2023 Pacific Games, re-opening of additional copra buying centres planned for this year and beyond are now in grave doubt. Diversion of the CEMA Revitalisation Programme funding also has the potential to affect the operation of the Development Bank of Solomon Islands (DBSI), which was recently reactivated to address the plight of rural farmers.
An estimated 3, 000 rural farmers will be the first victims of the government’s move. They would have nowhere to sell their products, insiders told Solomon Star on the weekend.
The CEMA Board was meeting in Honiara to decide the fate of Pakera Buying Centre in Kirakira, Makira – the only Copra Buying Centre which remains operational since it was re-opened by Prime Minister Sogavare a year ago this month. The Board’s decision is unknown.
The CEMA Revitalisation Programme was approved by Cabinet in May 2021. Some $77 million was allocated for the seven-year (2021-2027) programme, which includes repairs and maintenance of Copra Buying Centres which have been identified across the country.
Prime Minister Sogavare last year officially opened the two Copra Buying Centres – one at Kira Kira, Makira-Ulawa Province and the second one at Malu’u on Malaita as part of the CEMA nationwide Revitalisation Programme.
Lata in Temotu Province, Tarakukure on Choiseul, Marekalaku, Marau on Guadalcanal and Tigoa in Renbel Province were to follow. These are now on hold due to lack of funding.
Signs of trouble began emerging last year when CEMA received just $3 million from the government out of its initial allocation of $12 million, insiders said.
The trend simply continued this year.
This year, for example, CEMA received only $2 million out of $22 million it was initially allocated, insiders said.
“CEMA has been denied total funding of $29 million, which came from the Development Budget as well as Government funding support.
“This is another example of a government bent on mismanaging the economy. It is the same trend and indeed argument it successfully used for passing the Economic Stimulus Package [ESP], which was a give-away to friends and cronies at the expense of the hard-working taxpayers. It was a total waste, because it ended up a total failure,” an observer said.
“What is so important about this 2023 Pacific Games? This is just a two-week event, whose real benefits would not be felt in the long term. The CEMA Revitalisation Programme is the answer to our economic ills and yet the government does not seem to see it that way.
“It is a sad indictment on the DCGA and its management of the economy.”
Insiders said when Prime Minister Sogavare officially opened the two Copra Buying Centres in Kirakira and Malu’u last year, one could see the sparkles in the eyes of farmers.
“They felt that at long last their plight has been recognised and they were on their way to realising the answer to their struggle. The reopening of the DBSI was for them, the icing on the cake,” the insiders said.
“Now the government’s mismanagement has drowned all and any hope farmers might have had at the time. I won’t be surprised if rural farmers rally support against the DCGA at the national general election next year.”
By Alfred Sasako