PRIME Minister Jeremiah Manele has announced a $140 million buy-back of prime land jointly owned by Levers Solomon Ltd (LSL) and Russell Island Plantation Estate Ltd (RIPEL) in a move which has taken everyone by surprise.
Funds for the purchase would be raised by sale of Treasury Bonds to State-owned Enterprises (SOEs) such as Solomon Ports and Solomon Power, the government told a news conference in Honiara on Monday.
The Solomon Islands National Provident Fund (SINPF) appears to have escaped the government’s treasure hunt this time around, apparently because the previous government has already borrowed about $150 million from the workers’ savings scheme in exchange for treasury bond.
LSL and RIPEL land buy-back arrangement is part of a wide range of programs Prime Minister Manele announced on Monday.
These, he said, were identified by the Committee which worked on the program to address the Government for National Unity and Transformation’s (GNUT) first 100 days in office.
Once the acquisition process has been completed, LSL and RIPEL land on Guadalcanal and Russell Island would be returned to the Government, he said.
The Government believes it can complete the acquisition within its first 100 days in Office.
But despite the government’s confidence in handling the joint LSL-RIPEL land buy-back sale, reservations have begun to emerge on a number of fronts.
The government does not have the money to execute the buy-back arrangement.
“Last week – the pay day for public servants – is a classic example. Salaries and wages were not never posted to the commercial banks until 4pm last Thursday. Others had to wait until the next day which was Friday,” one officer pointed out.
LSL and RIPEL, which has a legally instituted Board, is believed to be raising questions about the government’s unilateral decision on the buy-back proposal.
“The board respects the decision of the government as long as the due process was followed. The Board would not be raising questions if the due process was followed,” a spokesman told Solomon Star.
The Board consists of Lavukal – the local group, which owns 24.9 per cent shares in the LSL-RIPEL ownership arrangement.
Meanwhile LSL/RIPEL have sought clarification from the High Court on related matters. A decision on this is expected on Friday.
By Alfred Sasako
