24 May 2007

Sols government settle's SOE's multi million dollar debt

10:21 am on 24 May 2007

The Solomon Islands Government has stepped in to settle the outstanding debts of one of it's State Owned Enterprises or SOE's, the Solomon Islands Electricity Authority or SIEA.

The sum of 2.6 million US dollars was owed by SIEA to the Solomon Islands National Provident Fund dating back to 1992 for the purchase of generators.

The loan agreement was guaranteed by the Government.

In a handing over ceremony yesterday, acting prime minister and finance minister Gordon Darcy Lilo said the Government will not repeat the same mistakes made by previous governments in guaranteeing loans for SOE's that are not commercially feasible.

Mr Lilo says the Government is now working to privatise it's SOE's following poor performances.