MP Lilo calls for abortion of SBD140 million LSL-RIPEL buy-back scheme, questions the amount of money the ‘investors’ brought into the country to warrant SIG to buy off their shares
THE Government for National Unity and Transformation’s (GNUT’s) $140million buy-back scheme for the prime land jointly owned by Levels Solomon Ltd (LSL) and Russell Islands Plantations Limited (RIPEL) has been met with opposition in Parliament.
Member of Parliament (MP) for Central Honiara, Gordon Darcy Lilo was the first to speak in objection of the move.
MP Lilo, who scrapped out a buy-back scheme initiated by the Danny Philip-led Government that he was part of after toppling him in a motion of no confidence in December 2011 to take on the prime ministership, said it is important for GNUT to properly conduct its due diligence and forgo the deal. Prime Minister Lilo then in collaboration with the Central Bank of Solomon Islands requested Patrick Wong and John Whiteside to show proof of their investment before the release of the buy-back scheme money to them. Their non compliance with this due diligence process stalled the payment and the scheme fell apart.
“If we are buying back RIPEL, are we buying back the assets or the land?
“If it’s the land, which land parcel numbers [are going to be repurchased],” he questioned.
In light of the unclarity of the buy-back scheme, MP Lilo added, “stop the deal because there were local companies that have gone down but we fail to bail them out.”
He questioned the amount of money the ‘investors’ brought into the country that Solomon Islands Government has to buy their shares.
“I have to dwell on this issue because ordinary people are now discussing it.”
MP Lilo further questioned if Solomon Islands Government is also part of the liquidation process.
“Who made the grantee and whether due diligence was conducted?”
He then appealed to GNUT to have a heart for the people of this country and stop the deal.
MP Lilo told Parliament that the two companies are not registered in Solomon Islands and did not exist.
“So why bail them out using tax payer’s money?
“The simple rule is that if anyone is declared bankrupt, cancel them and get them out of the country.”
Leader of the Independent Group and MP for East Are’are, John Maneniaru also supported the call by MP Lilo, saying proper due diligence needs to be conducted.
“For the good of the country, due diligence should be done.
“If that is not yet done, let’s call for a stop to the deal until a proper check is conducted,” he said.
MP Maneniaru said it is important that no political interference occurs during the process of due diligence.
“Given the financial situation facing the country, it is important not to make any move that will affect the country,” he said.
The MP for West Are’are also supported the comments and recommendation by MP Lilo.
He said the investors arrived in the country when he was working in the Ministry of Commerce, Industry, Labor and Immigration.
“So, it’s important look at the issue and how the investment was created.”
The deal is currently a matter of discussion amongst the public given the huge money that is now being involved. Opposition Leader Matthew Wale also questioned the $140million buy-back scheme.
By MOFFAT MAMU
