20 Jan 2017

Solomon Islands cabinet's bauxite decision labelled a disgrace

9:26 am on 20 January 2017

A Solomon Islands cabinet decision to remove a 20 percent export duty on bauxite has been labelled a disgrace by the parliamentary opposition group.

The National Parliament of Solomon Islands overlooking Honiara City

The National Parliament of Solomon Islands. Photo: RNZ Koroi Hawkins

The chairperson of government caucus, Central Kwara'ae MP Jackson Fiulaua, earlier this week defended the decision, which was made towards the end of last year, saying there was nothing wrong with government providing incentives to encourage foreign investment.

But a statement from the opposition is calling on the Solomon Islands public to hold Prime Minister Manasseh Sogavare and his cabinet responsible for giving away millions of dollars of public revenue to a foreign company.

This all comes after a text message conversation between the prime minister and a mining official last November, just before the export duty was removed and leaked to the press.

Alluding to the leaked texts the opposition pointed out that foreign investment should be dealt with by appropriate Government agencies and not through direct involvement with the prime minister.

It said Manasseh Sogavare and his cabinet had sabotaged these processes.

In the series of leaked texts published in the Sunday Star, the prime minister Sogavare reassured an official from Bintan Mining SI ltd of cabinet's intention to remove the export duty on bauxite.

The opposition group said the leaked messages raised questions about the prime minister's connection to the Indonesian mining company and his integrity.

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