WHAT is known today as the National Development Fund (NDF) is essentially a discretionary fund controlled by the Prime Minister.
It began in the 80s.
Every government budget up to 1996 contained a discretionary vote in the Prime Minister’s Office. At the time it was just a million dollar a year.
The discretionary fund, as we discovered in 1997 when SIAC took office under the leadership of Prime Minister, the late Bartholomew Ulufa’alu, was created for the Prime Minister to draw from when a certain situation arose, specifically when he was on Constituency tours. For example, there were embarrassing moments when a Prime Minister was presented with a project proposal, but there were no funding.
The discretionary fund was a good thing indeed.
But SIAC discovered that despite the merits, there was systematic abuse. Because of this, a decision was taken that the fund be abolished for two reasons: abuse and the government’s dire financial situation at the time.Taiwan picked it up. But instead of giving the funds to the government, it kept it as a secret fund aimed at stabilising the government when MPs decided to rock the boat so to speak.
Example during Danny Philip’s tenure as Prime Minister, Taiwan told Hon Philip that some $13 million or so were available for stabilizing government.
But unlike Prime Ministers before him, Hon Philip decided to break with the protocols governing the use of the fund. He decided to fund projects submitted by members of the public. This angered many MPs who believed it was money intended solely for them.
It would seem Gordon Darcy Lilo, then Hon Philip’s Finance Minister, successfully capitalised on the MPs’ “rebellion”. He succeeded Hon Philip as Prime Minister.
For reasons only known to the DCGA, the discretionary vote was re-established and was given the name, National Development Fund (NDF) – a rather deceptive description that DCGA uses to get PRC funding for Constituency development into.
Funds jointly administered by PRC and SIG are held in an ESCROW Account and the government uses the NDF to address its own MPs’ financial woes in the name of Constituency Development. It is not.
From a mere $1 million a year, the discretionary fund has grown, as we have seen last week to $7.8 million or $200, 000 to each Government MP.
By ALFRED SASAKO
Newsroom, Honiara
