PRIME Minister (PM) Jeremiah Manele has responded to a 10-point Memorandum of Demands (MoD), demanding among other things reshuffling of Cabinet Minister holding key positions in the eight-month-old GNUT coalition.
The Solomon Star has gained exclusive access to the confidential document, which carries the Prime Minister’s answers to each of the demands. And, like any battle, there is only one winner.
Leeroy private wharf could be a victim.
In this case, one of the 16 senior ministers and backbench who signed the document has confessed to being “used” in signing the demands.
By way of introducing the paper at the Caucus meeting last Tuesday, Prime Minister Manele confirmed having received the Memorandum of Demands (MoD).
“Hon. Colleagues, I received a Memorandum of Demand which was signed by 16 Members of Parliament consisting of Ministers and backbenchers from OUR Party and Solomon Islands People First Party (“the Demands”).
“This Memorandum of Demand was delivered to me personally by the Minister for Lands, Housing and Survey and was dated 23rd December 2024. (Prior to the delivery of this demands, the Minister of Lands came to see me very briefly and said that there are few matters that he wants to raise, so I told him to write to me on those matters. I did not expect that it will be done through the MOU of demands).
“It is very unfortunate that the media got hold of the MOU and decided to add their own flavour to it — on internal matters that GNUT as a government could have addressed through our internal processes.
“According to the Demands, these demands were purposely to restore public confidence and image of GNUT improve the current financial and economic situation,” the Prime Minister summarised the demands thus.
- Consider reshuffling of ministers
Hon. Colleagues, whilst this demand does not specify which ministers to reshuffle, it nevertheless calls for a reshuffle of Cabinet Ministers. As per the Coalition Agreement I will consult with the Coalition Executive to consider this demand. All ministers were appointed in accordance with the process set out in the Coalition Agreement, therefore any reshuffling or termination must be done in line with the Coalition Agreement. The Coalition Executive will meet and decide on this matter.
- Cabinet decisions must be consistent with Cabinet Handbook
Hon. Colleagues, the Cabinet Handbook 2005 contains guidelines that guide the proceedings of Cabinet (“the Handbook”).
It contains the principles and conventions by which the Cabinet system operates. It also clarifies the procedures necessary to ensure that the Cabinet complies with the role set out for it in the Constitution.
The processes outlined in the Handbook is to enable the Cabinet to fulfill the policy development role assigned to it in a consistent, coordinated, and informed manner and is designed to assist Ministers in meeting their individual and collective responsibilities.
Colleagues, any Minister who thinks that any Cabinet proceedings/ decision is not consistent with the Cabinet Handbook has every right to raise it Cabinet.
If Cabinet makes a decision, then it is final. Decisions in cabinet are made by consensus. If cabinet makes a decision and a minister goes against it, then the Minister must resign or will be asked to resign or sacked. This is the principle of collective responsibility which is a constitutional convention under the West minister system of government.
I understand there could be issues relating to cabinet meeting quorums. We must improve on this, and I wish to remind Ministers to turn up on time for cabinet meetings.
- A Minister whose Cabinet Paper is disputed must be present and given opportunity to defend it
Hon. Colleagues, the Cabinet Handbook provides, amongst other things, the duty of each Minister to be present in all Cabinet. Cabinet Meetings takes priority over all other commitments.
Ministers should not commit to engagements that might conflict with the times at which Cabinet. As it is the first duty of a Minister to play a full part in reaching decisions on policy matters in the Cabinet.
If, owing to unavoidable circumstances, a Minister is unable to attend any particular meeting, the Minister should give notice to the Secretary to Cabinet as early as possible, for the information of the Prime Minister.
- GNUT to put in place that any tax exemptions that is more than $10 million must be approved by Government before it is granted
Hon. Colleagues, tax exemptions are governed by various existing legislations. These legislations include the Income Tax Act, Goods Tax and/or the Customs and Excise Act. These legislation(s) provide the statutory processes for the granting of exemptions. The Minister of Finance and Treasury does not possess the absolute power to grant exemptions. However, the Minister of Finance is required by law to act upon the recommendations of the Exemption Committee. The Exemption Committee has guidelines that are used to determine whether or not an exemption should be granted, The Exemption Committee is also responsible for drafting and clearing all exemption Orders before they are brought forward to the Minister of Finance for sign-off.
The Ministry of Finance and Treasury is currently embarking tax reforms and also on the implement of Value Added Tax. I will ask the Minister for Finance and Treasury to direct Officials to do a presentation to Caucus.
I understand that if the value-added tax is implemented, there won’t be a need to grant exemptions on goods tax and customs duty, as the tax system will provide similar tax relief through tax rebates.
Caucus will then (if need be) agree to make the necessary changes to the Policy if the tax reform program does not address this issue.
- Revoke the Mustard Seed Medical Program
Colleagues, the Mustard Seed Program will end in March 2025 and will not be renewed. Terminating the Agreement now may require the Government to spend money or may lead to commencement of legal proceedings against the Government so it is advisable to allow the contract come to an end in March.
- GNUT to increase and fast track the implementation of RSDP program
Colleagues, the RSDP is a program that belongs to PRC and is implemented by SIG through the Ministry of Rural Development. As you all know it is unappropriated money and is model of direct implementation by PRC. A similar model is now being used by Australian Government as well where they directly fund projects. What GNUT can do is negotiate for an increase and fast track the next RSDP.
I have already raised this matter with the PRC Ambassador, especially the speedy implementation of the 2024 and 2025 RSDP. PRC’s position is for a step-by-step approach, that is implement the 2024 RSDP, report back, then process the 2025 RSDP.
The MRD is currently discussing with the PRC Embassy on how should channel and implement the 2024 RSDP funds/ programs. MRD will bring a paper to caucus and cabinet once (the) discussions are concluded.
- GNUT discontinues the operation of Solomon Forestry Association within our Forestry Sector
Colleagues, the Solomon Forest Association (SFA) is established pursuant (to) Regulations under the Forest Resources and Timber Utilization (Timber Licensing and Tree Felling) Regulations 2007. The Regulation can be repealed and the SFA will no longer exist.
The government cannot close down SFA because their right to associate is protected under section 13 of our Constitution. The grievances relating to SFA needs to be clarified and detailed so that the appropriate actions can be taken by relevant authorities that are mandated by our laws such as the Forest Resources and Timber Utilization Act.
- GNUT to put in place a policy that requires logging companies to make payments by way of Letter of Credit and not Telegraphic Transfer
This is an issue for the Ministry of Finance and Treasury and the Central Bank of the Solomon Islands to examine. However, I agreed that all proceeds from log exports, including mineral exports, must be remitted back to the country. Exporters may remit this income offshore, provided all tax and nontax obligations are cleared.
- Government investigates and revokes the operation of Gafung (SI) Limited who are carrying our fuel business offshore or at the foreshore of Honiara
This matter has been referred to the PIMEU and Ministry for Mines, Energy and Rural Electrification for investigation. There is a briefing paper before us on this matter, and the Minister responsible will enlighten us in our discussions shortly.
- GNUT safeguards the operation of international wharf (Honiara, Noro, Leeroy) and discontinues the operation of all suffrage wharves around the country
Hon. Colleagues, operations at Honiara and Noro Wharves are looked after by the Solomon Islands Ports Authority, a state-owned enterprise. Leeroy Wharf is a privately owned wharf. Honiara, Noro and Leroy are declared Ports under the Ports Act.
Sufferance wharf means any place other than an approved place of loading or unloading at which the Comptroller may, in his discretion, and under such conditions and in such manner as he may direct, either generally or in any particular case, allow any goods to be loaded or unloaded.
The power to grant suffrage wharf rests with the Comptroller of Customs. The decision to grant suffrage wharf was undertaken considering the capacity of Customs to administer the laws at the Suffrage Wharves premises. Also, the owner of Suffrage Wharf has to comply with all the guidelines as required by customs law.
The suffrage wharves have contributed a lot to trade facilitation and development in the Solomon Islands. According to customs data, from 2022- to mid-2024, around 41 million Metric tonnes of cargo were handled through the Suffrage wharves. The revenue collection at the suffrage wharves in the same period amounted to $ 11.7 Million. Most of the Materials for the key Government projects such as the PG2023 infrastructures, and the Land Maritime Connectivity Projects that were currently in progress were discharged at the Suffrage wharves. The suffrage wharves arrangement contributes to the country’s development agenda.
Most of the suffrage-wharves owners are bulk importers of cement. All of them have contributed immensely to the reduction in the price of cement to between $50-65 per bag. Given cement is the key product in infrastructure development, having more importers is good for economic efficiency gains as it drives down costs of development.
There seems to be internal conflict among those operating suffrage wharf, including the owner of Leroy Wharf. In this instance, the government must carefully evaluate and make decisions that are fair and promote trade facilitation. In this context, elevating a privately owned port to international status needs to be carefully reconsidered, as it poses a threat to our national security. Solomon Ports is operating effectively both in Honiara and Noro, and its international port status must be protected and preserved. Other privately owned ports, can only be designated as suffrage, subject to assessment by Customs and Excise.
It is understood the Minister of Lands, Housing and Survey was the first to speak after the Hon Prime Minister concluded his response to the 10-point demands. The Minister was one of the senior Ministers who signed the document.
“Mr. President, let me say I was used,” Minister Polycarp Paea, was heard to have told Tuesday’s Caucus.
Another Minister jokingly said at the Caucus meeting he signed but is still waiting for his payment.
Asked what happened to Chachabule Amoi, the MP for Marovo who allegedly led the move to cross the floor, one Minister said, “he is stuck in the mud.”
This prompted one observer to say the Prime Minister’s response to the 10-point demands could backfire on the GNUT coalition.
Exclusive by Alfred Sasako
