Anti-corruption watchdog slams $6.4 million toilet paper contract, urges NHA/GOC to adhere to procurement processes & raises need for an audit by the Auditor General
TRANSPARENCY Solomon Islands (TSI) has urged the Games Organising Committee (GOC) and the National Hosting Authourity (NHA) to adhere to the procurement process and the rules provided under the PG 2023 Act 2017 and the Public Financial Management Act.
TSI made the call following the leakage of the $6.4 million contract that NHA/GOC awarded to Empire Barbershop to provide toilet paper for the Sol2023 Pacific Games. The Empire Barbershop contract falls under an agreement signed between NHA/GOC and the EMPIRE Barbershop and Sullivans (SI) Limited.
“The agreement between NHA/GOC and the EMPIRE Barbershop and Sullivans (SI) Limited is a broad-day light way of siphoning of money, non-transparent, fishy and unaccountable. It shows an uncaring and reckless Executive Government that prioritises toilet paper over basic medical drugs for its people,” TSI said in a statement yesterday.
TSI said it continues to be dismayed by the way the DCGA Executive Government continues to squander money here and there for the Pacific Games and that the amount of money allocated and spent was just excessive.
“Just last week, the news of the allocated $6.4M for toilet paper went viral in the media, the public are disappointed at how the $6.4m is allocated for toilet paper when there are other pressing needs.
“On 15 September 2023, Solomon Star Issue No.8574 carried the news that there were no drugs at the surgical theatres. Many mothers were unable to undergo safe medical operations at the NRH. There are other patients whose scheduled operation kept re-scheduling due to no drugs needed for the operation in the theatre.
“The clinics and hospitals in and around Solomon Islands still need basic medical drugs. If we have such funds available why then are people’s health being sidelined for toilet paper for the games? From Sun Sports news, Mr Nieng the Executive Director of NHA explained that the quantity of toilet paper is based on actual usage during the event.”
TSI slammed the explanation by Mr Nieng as unconvincing and requested that the budget breakdown for the $6.4 million be made public.
“After all it is public money regardless of where it comes from, be it our national budget or from our development partners. Is this amount entirely for toilet papers only?
“Does Empire Barber Shop have the experience and the resources to store and move this much worth of toilet paper around from the port to where it is to be used like the Pacific Games sporting venues, accommodations and athletes’ villages. Or is Empire Barber Shop a front for some unscrupulous individuals’ business in Honiara?
“Is this Money Laundering and Empire Barber Shop an innocent company that is being used to launder dirty money. The source of funding for the toilet paper should be made public too,” TSI questioned.
TSI said it is just alarming how contracts were awarded for the supply of goods and services for the anticipated event of PG 2023.
It said whilst many readers have lashed out and made public outcries shouted their lungs to the media this is “corruption” NHA/GOC officers denied the allegations.
TSI said but whilst they denied the allegations, NHA/GOC have not provided any information publicly to support their responses.
“At the moment the public is questioning, how and why contracts were are awarded by GOC and NHA? Is this a case of NHA being a law unto itself and not complying with its own Act.
“Section 12 of Pacific Games Act 2017 gives the NHA the power to appoint a subcommittee to deal with tenders/bids, thus it is not the work of the National Hosting Authority to deal with tenders/bids and award contracts. Unless of course these are corrupt deals.
“Section 46 of the Pacific Games 2023 Act 2017gives NHA the power to make instructions for the procurement procedures and policies. Where are those procurement procedures and policies for the awarding of contracts. Certainly, this award does not comply with the procurement processes of the government,” it added.
TSI said the Empire Barber Shop is not in the business of supplying toilet paper, nor is it a retail or wholesale company that supplies these types of goods.
Furthermore, it said the company is not even registered with the Company Haus.
“We can assume therefore that it does not pay tax (PAYE) and nor NPF for its workers. For $6.4m does it have the financial management capabilities to administer such amount and why is the NHA not applying the regulations on this bid. Are the members of NHA benefiting through commission etc.
“After reading the Pacific Games 2023 Act 2017 in whole, the Law says that the right and appropriate body to handle tender/bids and award contracts should be a sub-committee appointed by the NHA. The law says that NHA has the power to make procurement procedures and policies and not to award tenders and bids.
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“The law does not give responsibility to NHA to deal with tenders/bids directly. Under section 5 of the Pacific Games Act 2017. The NHA according to the Pacific Games Act 2023 the responsibility of planning, budgeting, management and control of funds for the Pacific Games 2023, and not that of awarding contracts, tenders,” TSI said.
TSI said there is a need for the Auditor General to audit the money spent and how they were spent based on the regulations for financial expenditures, especially when it is tax-payers money.
By IAN LADDS
Solomon Star, Honiara
