TRANSPARENCY Solomon Islands (TSI) has recommended that the State-Owned Enterprises (Amendment) Bill 2024 be withdrawn.
TSI made the recommendation when its officials appeared before the Bills and Legislative Committee in Parliament on Friday 11 October.
TSI Legal Officer Joy Abia said, TSI noted the PSDI Finding Balance 2023 Report, the Solomon Islands SOE Ownership Policy 2018 and acknowledged that there is a need to further strengthen the SOE sector through regular reviews.
“However, with all due respect, this SOE Bill is not the answer,” she said.
Ms Abia said any review and reform of the SOE Act must clearly identify the problem, how the proposed amendment(s) will address the problem and must take into consideration the following matters:
- That there is transparency and accountability with regards the appointment of SOE Board of directors;
- Review and amend current provisions of the SOE Act and SOE Regulations pertaining to the qualification of members of Parliament appointment as SOE board of directors to ensure “SOEs operate with full accountability, transparency and independence from political influence’ according to the Solomon Islands SOE Ownership Policy 2018; and
- There must be a clear distinction of the separation of powers and roles of each Accountable Ministers and the SOE Board. (Refer to Solomon Islands SOE Ownership Policy 2018).
“The end goal is having effective SOEs, improved service delivery, SOE commercial mandates not jeopardized by political influence.
“If “Solomon Islands robust legal framework for SOEs has contributed to the financial success of its largest SOEs and generated the highest portfolio returns among the Pacific Islands countries…” (PSDI Report 2023) what then is the defect that this Bill intend to fix?” she questioned.
As such, Ms Abia said TSI submits that this Bill be withdrawn.
Minister of Finance and Treasury, Manasseh Sogavare is responsible for the submission of the Bill to Parliament.
By EDDIE OSIFELO
Solomon Star, Honiara
