15 Nov 2011

Watchdog says Taiwan should stop giving loose cash to Solomon Islands

12:41 pm on 15 November 2011

A political watchdog in Solomon Islands says Taiwan should stop giving what it calls loose cash to members of parliament because it is contributing to instability.

Danny Philip has been unseated as Prime Minister and is being investigated for alleged misuse of funds provided by Taiwan.

The chairman of Transparency International in Solomon Islands Bob Pollard says Taiwan has acknowledged its aid is being abused but significant changes it made last year have so far been ineffective.

"I certainly hope Taiwan takes note of this and changes their ways. It's a bit of a machiavellian situation where they've given their funds and it's helped bring down a corrupt government."

Bob Pollard says the need to audit aid funds is increasingly important in Solomon Islands whose government has only recently started to get budgetary support from organisations like the International Monetary Fund and the World Bank.