Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698081258718.pdf (Solomon Islands)
National Parliament of Solomon Islands Public Accounts Committee Committee Report.

Report on the 2023 Supplementary Appropriation Bill 2023 (No.3 of 2023) NATIONAL PARLIAMENT ~~ .

No.

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(j -...-...........,..._,_.,~-........-.~..,...;..~- Presented on 18 May 2023 National Parliament Office Public Accounts Committee Report: May 2023 2 Committee Membership The members of the Public Accounts Committee (11th Parliament) are: Hon.

Douglas Ete, MP, Chairman Hon.

Matthew C. Wale, MP Hon.


John D. Kuku, MP Hon.

Rick N..Houenipwela, MP Hon.

Lilly Maefai, MP Hon.

John Maneniaru, MP Hon.

Alfred Efona, MP Han.

Ethel Leney, MP Han.

Commins Mewa, MP Han.

Silas V. Tausinga, MP Han.
Claudius Tei'ifi, MP Secretary: Mr David Dennis, Auditor General Secretariat: Mr Heston Renee, Committee Clerk Contact details Public Accounts Committee National Parliament of Solomon Islands POBox G19 Honiara Telephone: (677) 28520/24161 Email: ComSec®parliament.gov.sb URL: www.parliament.gov.sb Public Accounts Committee Report: May 2023 ii Chair's Foreword REPORT OF THE PUBLIC ACCOUNTS COMMITTEE Mr Speaker, l'C!_.1l.T,I,r-f,;\)fTlnr-l and [g] of the National Parliament of Solomon Sir, to present the Report of the Public Accounts pplementary Appropriation Bill 2023(No.3 of 2023) Public Accounts Committee 17 May 2023 Public Accounts Committee Report: May 2023 iii Table of Contents Committee Membership Chair's Foreword Executive Summary Chapter 1: Introduction Chapter 2 - Background Information Chapter 3 - Issues of Concern Central Bank of Solomon Islands 01 Solomon Islands Electoral Commission 03 Ministry of Agriculture and Livestock Development 05 Ministry of Education and Human Resources Development.. 06 Ministry of Finance and Treasury 09 Ministry of Health and Medical Service 10 Ministry of Infrastructure Development 14 Office of the Prime Minister and Cabinet : i ii 1 3 5 9 9 13 14 18 23 31 33 34 16 Ministry of Police, National Security and Correctional Services ...38 20.
Ministry of Culture and Tourism 21.

Ministry of Commerce, Industry, Labour and Immigration .42 43 Public Accounts Committee Report: May 2023 iv 22 Ministry of Communication and Aviation 23 Ministry of Fisheries and Marine Resources 24 Ministry of Public Service 25.
Ministry of Justice and Legal Affairs 26 Ministry of Home Affairs 32 Ministry of Environment, Climate Change, Disaster Management and Meteorology Appendices Committee Functions Appendix 3: Minutes of Public Hearings List of Submissions 46 .49 52 53 54 57 60 61 71 Public Accounts Committee Report: May 2023 1 Executive Summary According to the Macroeconomic and fiscal context that framed the 2023 National budget'.

111eReal Gross Domestic Product is projected at 2.8 percent.
The DCGA top down approach is built from the 2022 budget which embedded in the Solomon Islands Budget theme for 2023 fiscal year "Together, Moving Solomon Islands Forward" one can continue to pose the question on how we can move our beloved country forward.
On the back of a depleting economy given a substantial current account deficit for the 2023 fiscal year, compounded with high inflationary headwinds of around 10% in the first and second quarter of 2023; we also have declining revenue capture across most sectors including the fisheries sector, together with an unprecedented expansionary budget to around $4.5 billion.

The country is expecting a $204.9m deficit on the 2023 fiscal budget.
This in itself poses a risk to the budget and the economy and subsequently calls for the government to undertake a vigilant approach to ensure the economy does not deteriorate further.

The executive of the day strives consistently to ensure its two main key commitments amongst others policy areas are met and they are (1) Hosting the 17th Pacific Games for 2023 and Preparation for the National General Election in 2024.
The Committee noticed the struggles that our economy encountered and therefore expects these supplementations.

The Public Accounts Committee (lithe Committee") completed its examination of the 2023 Supplementary Appropriation Bill 2023 (No.3 of 2023) from the 10to 12 May and 65 witnesses appeared before the Committee.

The Bill seeks to appropriate an additional $370,637,520from the Consolidated Fund for the service of the financial year ending 31 December 2023.
It seeks to regularize Contingency Warrants of $4,145,000Advance Warrants of $54,803,126and $47,140,734additional recurrent expenditures and $144,044,198 development expenditures for the services in the year ended 31st December 2023.
The Committee proposed six (6) recommendations to the Solomon Islands Government: Recommendation 1 The Committee notes with Livestock Development's great concern that the Ministry of Agriculture and 1 This is taken from the Budget Paper Volume 1: 2023 Financial Policy Objectives and Strategies Public Accounts Committee Report: May 2023 2 plans for PG2023 food needs are not yet finalized and require immediate support from the Government to ensure that plans are delivered as expected.
The Committee recommends that the PG2023 grants for Ministry of Agriculture and Livestock Development are prioritized to allow farmers to prepare in time for PG2023.

Recommendation 2 The Committee remains concerned that budget funding gaps and unilateral withdrawal of impact on public Ministry budgets, especially development budgets, will have a significant service delivery as well as likely longer-term impacts on economic growth.
The Committee recommends that the Ministry of Finance and Treasury secure suitable funding without the need to undermine Ministries' development plans in 2023.

Recommendation 3 The Committee noted the importance of security during the Pacific Games and recommends the National Hosting Authority in consultation with the Police, properly address that security issues well ahead of arrival of visitors at the Panatina and Kukum Campuses.
into Solomon Islands including Recommendation 4 The Committee is concerned that there will be insufficient accommodation capacity for the period of the Pacific Games for non-athletes and tourists.

The Committee recommends that and any other NHA consider additional plans to encourage private sector engagement options on a recovery basis to increase accommodation capacity in Honiara.
Recommendation 5 commends to build a professional the Ministry of Police, National Security and Correctional The Committee standards.

The Services' plans Committee recommends that the professionalization program for RSIPF be fast-tracked to prepare the existing force for upcoming significant events like the Pacific Games and to deal with the increasingly complex community needs.
police force to international Recommendation 6 The Committee noted the need to increase the fisheries revenue contribution, which was The Committee historically to Government contributor significant Revenue.

a Public Accounts Committee Report: May 2023 3 that the relevant Minister also be present at future Parties to the Nauru recommended Agreement (PNA) negotiations to ensure we remain on track.
Chapter 1: Introduction This Chapter outlines the Inquiry process including information on the Public Accounts Committee (PAC).

Overview 1.1 The National Parliament is the independent law-making arm of government to which the Executive is accountable to.

The Parliament is the only institution vested with the power to authorize the allocation of public monies through the Annual Appropriation or Supplementary Appropriation Acts.
The Parliament also performs many of its oversight functions through its Standing Committees.

The Public Accounts Committee (lithe Committee") is one of the committees and is given the power to examine the annual Draft Estimates budgets prior to their tabling before Parliament.

1.2 The 2023 Supplementary Appropriation Bill 2023was received by the Speaker and certified on Tuesday 25th May 2023.
The Committee began its deliberations from 27thApril and 4th May, and held public hearings from 10thto 12thMay to examine the Bill that seeks to appropriate an additional $370,637,520to the service of the year ending 31 December 2023.

1.3 Incompliance with the Parliamentary Standing Orders, this Report has been prepared for the information of Members of Parliament to assist them in their debate on the Bill.
It aims to draw the attention of the Members of Parliament on the Committee's findings and recommendations after the conclusion of its detailed examination of the Bill.

1.4 The Committee considered evidence provided by government ministries, statutory bodies, the Central Bank of Solomon Islands and sought advice from the Office of the Auditor General.
1.5 This Report outlines the findings of the Committee's examination of the Bill that comprises the Contingency Warrants (CWs), Advance Warrants and Additional Supplementary Expenditure for both the Recurrent and the Development Expenditures.

Public Accounts Committee Report: May 2023 4 1.6 The Permanent Secretaries (PSs),Deputy Secretaries (DSs)and senior officialsof various ministries who appeared before the Committee provided valuable information.
The Committee also benefited immensely from the Officeof the Auditor General.

The Central Bank of Solomon Islands (CBSI)and the Ministry of Finance and Treasury also provided insights and projections of economicperformance for 2023.
Inquiry Process 1.7 In accordance with its mandate under Standing Orders 69 of the National Parliament, the Committee resolved at its meeting on the 25th of May 2023 to commence the examination of the Billfrom the 10thto the 12thof May 2023.The full terms of reference are included on the Appendices of this report.

1.8 The inquiry process included inviting key financial institution and government ministries to make written submissions and appearing at public hearings.
1.9 The Committee examined 15 government agencies,including one statutory bodies, and received 30 submissions.

A list of submissions can be found at the Appendices of this report and copies of the submissions are available at the Committee Secretariat.

1.10 Transcripts of the hearings are available at Parliamentary Hansard Department.

1.11 Minutes obtain from the hearings can be found in the Appendices of this report.
Public Accounts Committee Report: May 2023 5 Chapter 2 - Background Information This chapter outlines the brief background of the 2023 Supplementary Appropriation Bill 2023 (No.3 of 2023).

2.1 The Bill seeks to appropriate an additional $370,637,520 for the service of the year ending 31 December 2023, which includes $4,145,400 for Contingency Warrants, $159,035,302 for Advance Warrants and $207,456,818 additional expenditures for the services in the year ended 31st December 2023.
EXPENDITURES AMOUNT ($) CONTIGENCY WARRANTS - RECURRENT ADVANCE WARRANTS- RECURRENT ADDITIONAL SUPPLEMENTARY - RECURRENT EXPENDITURES ADDITIONAL SUPPLEMENTARY - DEVELOPMENT EXPENDITURES TOTAL APPROPRIATED EXPENDITURES 4,145,400 159,035,302 144,044,198 63,412,620 $370,637,520 CONTINGENCIES WARRANTS RECURRENT Head 25 Ministry Ministry of Justice and Legal Affairs 32 of Ministry Climate Change, Management and Meteorology Environment, Disaster Amount 1,535,400 This amount provides Purpose for payments cater remuneration package.
2,610,000 This amount provides additional to to special prosecutor funds additional for SIG emergency funds to to the cater of Vanuatu and for Temotu Government Province Outer Islands that were affected by Tropical Cyclones Judy and Kevin.
support Total Recurrent Contingency Warrants 5,464,810 ADVANCE WARRANTS RECURRENT Head 05 Ministry Ministry Human Resources Development of Education and Amount Ptl_rpose 17,557,335 Budget Support the the of Australia Government Department of Foreign Affairs and Trade through funded by Public Accounts Corrunittee Report: May 2023 06 Ministry Treasury of Finance and 09 Ministry of Health and Medical Services 14 16 Office of the Prime Minister and Cabinet Ministry Security Services of Police, National Correctional and 20 Ministry of Culture and Tourism 22 23 Ministry of Communication and Aviation Ministry of Fisheries and Marine Resources 6 (DFAT) activities.
to fund Ministry ongoing 15,446,564 Budget by (WB) funded through Support the the of Australia Government Department of Foreign Affairs and Trade (DFAT), Asian Development Bank (AD.B) bank for Financial and World Information System upgrade management to the D365 system and for Economic Stimulus Package to Cushion the negative impact of COVID-19.

Also, to support the National Disaster Management Office to payoff the COVID-19 related arrears that were incurred in 2022.
26,187,489 Budget by for 2022 funded through Support outstanding the the of Australia Government Department of Foreign Affairs and Trade (DFAT) and Republic of China (ROC) to cater annual operation planned activity that will be implemented in 2023 and for construction of pre-fab mental health acute ward.

by the the of Australia Government Department of Foreign Affairs and Trade the National Hosting (DFAT), to support the 2023 Authority Pacific Garnes.
in preparation Support through funded for 92,278,761 Budget 3,223,496 Budget funded Support the is Government the of Australia Department of Foreign Affairs and Trade (DFAT), to cater for asset maintenance and housing constructions.

by through 557,049 Budget by for funded Support the Government of New Zealand through the Ministry of Foreign Affairs and Trade (MFAT), development, product visitors experience and COVID-19 safety.
by the Asian Pacific Network Centre (APNIC) Foundation to develop SolCERT project within the Ministry.
Information funded 818,331 Budget Support 2,278,775 Budget Support funded by the New the through Government Zealand and Affairs Ministry of Trade (MFAT) towards Mekem Strong Solomon Islands Fisheries (MSSIF) project Foreign Public Accounts Committee Report: May 2023 7 24 Ministry of Public Service 687,502 Budget Support funded by the Australian through the Department of (DFAT) for and public Government Foreign Affairs and Trade reform programs ongoing service transformation strategy.
Total Warrants Recurrent Advance 159,035,302 ADDITIONAL SUPPLEMENTARY EXPENDITURE RECURRENT EXPENDITURE Head 05 Ministry Ministry Human Resources Development of Education and 06 10 14 16 21 Ministry Treasury of Finance and Ministry of Infrastructure Development and Office of the Prime Minister and Cabinet Ministry Security Services of Police, National Correctional and Ministry of Commerce, Industry, Labour and Immigration Amount Purpose 21,064,345 Budget revised to provide additional £lmding to cover cost of office rental exam papers, payments, printing shortfall in Grants and utilities.
of 102,824,543 This amount provides additional funding to cater for the reconstruction of buildings and businesses damaged during the civil unrest and riot in November 2021, and SIG to the Development Bank of support Solomon Islands (DBSI).
9,415,853 This amount provides additional funding and to cater outstanding arrears of work already done last year, 2022. for additional pressures 2,000,000 This amount provides additional the establislunent for funding of SIG to cater Newspaper Printer, outstanding from last year 2022.

2,000,000 This amount provides additional funding to cater for purchase of new motor vehicles to boost police security and law and order services during the 2023 Pacific Games later this year.
4,564,000 This amount provides additional funding to cater for the urgent demand for passport books, office rental and utilities.
Total Recurrent Supplementary Expenditure 141,868,741 VARIA nON IN APPROPRIA nONS Head 01 Islands Electoral Ministry Solomon Office Amount Purpose -144,044,198 Funding revised through variation under the Solomon Islands Electoral Office to spending support other SIG ministries Public Accounts Committee Report: May 2023 8 Total Variation in App_ropriation -144,044,198 priorities commitments additional recurrent expenditures.
and under DEVELOPMENTEXPENDITURE Head Ministry 03 Ministry of Agriculture and Livestock 05 10 21 23 26 Ministry of Education and Human ResourcesDevelopment Ministry of Development Infrastructure Ministry of Commerce, Industry, Labour and Immigration Ministry ofFisheries and Marine Resources Ministry of Home Affairs Amount Purpose 3,050,000 This amount provides additional funding for revitalization of Commodity Export Marketing Agency (CEMA) and 2023 Pacific Games support to strengthen and to elevate the opportunities for farmers to ensure the local food production is strong to address the catering needs during the Pacificgames.
8,000,000 This amount provide additional funding to rehabilitate the school infrastructures that were damaged or destroyed during flooding and the recent earthquake, burning and other additional schools.

27,000,000 This amount provides additional funding to cater for revitalization of CEMAand to purchase a Boat from overseas and machineries for constituencies and local private operators and tar-sealing of Auki road.
16,062,620 This amount provides additional funding to cater for revitalization of CEMAand for Suava EconomicGrowth Centre.

6,000,000 This amount provides additional funding towards community sea weed farming 3,300,000 This amount provides additional funding to cater for hosting of the SolomonGames 2023organized mainly to identify talents in preparation for the 2023PacificGames later this year.
Total Development Supplementary Expenditure 63,412,620 Public Accounts Committee Report: May 2023 9 Chapter 3 - Issues of Concern Central Bank of Solomon Islands The Committee received an update on the economy from Central bank and noted the following highlights.

First Quarter Macroeconomic update on the economy Global trends 3.1 The latest forecast for the global economy in the April 2023 update is for growth to fall to 2.8% in 2023 from 3.4% in 2022 before rising modestly to 3% next year.
The slowdown is concentrated in advanced economies especially in the euro area and the United Kingdom reflecting ongoing effects of the war and the three years of COVID.

More importantly, in an alternative scenario where further financial turmoil continues, the global economy could fall to 2.5% in 2023.
3.2 Global headline inflation is projected to ease to 7% in 2023 as the massive and synchronized tightening of monetary policy by most central banks starts to bear fruition with inflation slowly moving back to their targets.

Domestic trends 3.3 On the domestic front, recent indicators in the first quarter of this year, showed mixed outcomes.
The production index rebounded by 8% largely driven by rebounds in log and copra productions and continued positive outturns in fish catch, coconut oil and mineral productions.

3.4 In contrast, palm oil and cocoa productions declined, furthering the fall witnessed since the second half of last year.

Growth outturns in other sectors such as utilities grew whilst employment figures remained weak at the end of March with a 0.5% decline.
3.5 Turning to consumer prices, headline inflation rose to 9.2% in March 2023(latest available) from -0.6% in March 2022.

This increase in headline inflation reflected mainly the strong pass-through effect of high imported inflation in the second half of last year, in particular, surging fuel and food prices to the domestic inflation.

Domestic inflation increased to 9.1% from -3.1% in March 2022 whilst imported inflation rose to 9.5% in March 2023 from 6% in the corresponding period last year.
Core inflation remained high at 5.9% compared to 2.8% in the same month a year ago.

Public Accounts Committee Report: May 2023 Fiscal performance 3.4 On the fiscal front, the fiscal balance recorded a deficit of -0.3 % of GDP ($ -37million) as government expenditure continued to outpace revenue.

Total expenditure grew 23% to $800 million in March whilst revenue only grew by 6% to $763 million.
The outturn in expenditure reflected mainly capital expenditure amid favourable collections across major tax categories during the quarter.

3.5 Total government debt stock rose 4% to $2,048 million (16% of GDP) at end of March following the disbursement of the external loan from the ADB as well as exchange rate movements during the month.
External debt rose by 4.6% to $1,205 million whilst domestic debt stock went up 3% to $843 million reflecting the issuance of development bonds and treasury bills over the period.

3.6 Total debt servicing stood at $27 million, of which $21 million was on principal repayments and $6 million on interest payments.

In terms of the debt sustainability indicators: debt-to-GDP ratio stood at 16%, debt service-to-domestic revenue at 10%, and debt service-to-exports of goods and services at 8%.
These indicators indicated that the debt level is within government debt management limits.

3.7 On the external sector, the current account posted a deficit of $284 million (2% of GDP), on the back of higher imports payments against lesser export receipts received.

Imports surged by 60% to $764 million whilst exports grew by 50% to $529 million.

3.8 Gross foreign reserves remained well above the minimum threshold of six months to record at 13.5 months of import cover.
In monetary terms, foreign reserves stood at $5,423 million at end March 2023.

3.9 Monetary conditions were sustained in the first three months of the year in line with the slow pick-up in economic activity.

Money supply rose 2% to $5,752 million.

Private sector credit on the other hand, declined 1% to $2,6267 million reflecting muted lending activities during the quarter.
In terms of commercial banks' interest rates as at end December 2022; both lending and deposit rates fell over this period with lending rates falling to 9.6% from 10.06% and deposit rates decreasing to 0.49% from 0.47%.

Monetary Policy 3.10 In light of the above economic context, the Central Bank currently employs a tight monetary policy stance.
The shift from the previous accommodative stance reflects the expectations of persistent inflation from war related disruptions and rebounding domestic demand and CBSI will continue to monitor the implications of incoming data for these outlooks and take appropriate action as necessary.

In terms of financial stability, the overall financial system remained robust and stable.
Public Accounts Committee Report: May 2023 Economic outlook and risks 3.11 CBSI expects the economy to recover this year to 2.7% on account of anticipated spin- offs from the Pacific Games across most sectors in the economy and positive outlooks for mining, agriculture and the fisheries sectors.

3.12 Nevertheless, this recovery is fragile and is hinged largely on how external global events unfolds, especially with the recent rise in financial turmoils.
3.13 Inflation outlook, CBSI expects inflation to ease to 3% by end 2023 in line with anticipated softening of global commodity prices.

Nonetheless, risks to this outlook are titled downward amid heightened uncertainty in the global environment.

3.14 Fiscal outlook including the current supplementary budget, a budget deficit of 14% of GDP is anticipated.
With government needing to keep expenditure at around $5bn to maintain essential services amid a domestic revenue capacity that is limited to just over $3 billion in the short-term resulting in a funding gap of around $2 billion.

Filling this gap means additional borrowing and more donor support needed.

3.15 The Committee noted CBSI comments and were particularly interested in the funding gap which was identified in the 2023 PAC budget report and continues to remain a concern for the Committee.
The Committee requested CBSI views on the funding gaps, necessary steps the Government should take to ensure Government services, plans are funded, and that budget is credible and properly implemented.

3.16 The Central Bank noted that the Government current 14% debt to GDP means there is still headspace for borrowing within the current debt ceiling, which is capped at 35%.

The Central Bank was requested by the Committee to provide detailed update on the country's debt position according to their records.
3.17 The Committee raised the issue of cash reserves noting that SOE's are engaged in the money market.

Of particular interest was Pan Oceanic Bank (POB) and National Provident Fund (NPF) who have significant exposure in Government bonds and treasury bills.

POB have $119 million which exceeds their capital.

The Committee is interested in whether the Central Bank has any concerns with either NPF or POB holdings in Government Bonds or Bills.
3.18 The Central Bank pointed out that so long as all institutions remain complaint with the prudential guidelines there should not be any issues with the institutions.
3.19 The Committee further discussed the Governments debt options and whether there is any appetite within the market for further bonds including with Central Bank Public Accounts Committee Report: May 2023 3.20 The Central Bank responded that the rates for Government bonds is more attractive than money market and should generate more interest.
The challenge will be that Solomon Islands has a small number of active participants and so if these entities have exhausted their appetite then options for further bond issuance is limited.

3.21 Central Bank also can participate in bonds in the secondary market only.

The legislation defines the limit by which the CBSI can engage and have to date already exhausted the amount by which they can engage.
3.22 The Committee pointed out that in 2005 there were serious failures in Government meeting its obligation and wanted to know Central Banks view on whether there was any concerns that this could be repeated again now.

3.23 The Central Bank pointed out that the Government remains committed to its debt servicing and is managing its debt prudently as set out in the Government's debt management strategy which should ensure the government is able to meet its debt obligations.
As member of IMP Solomon Islands does have fall back options if there are stability issues or need for bail out.

3.24 The Central Bank pointed out that Solomon Islands are primary sector producers so focus on reforms in output in these areas is recommended.

Exports impacted by number of factors like climate change and so on.

Output increases can't be done in short term so their advice is to undertake reforms to increase outputs.
These are likely longer-term impacts so undertaking early reforms is best way.

Also diversification across sectors like tourism is an opportunity and Solomon Islands can look to Fiji for their experience.

3.25 The Committee queried what the likely impacts on the economy is from the Pacific Games (PG2023) and the likely effects of high inflation noting that this is driven mainly by imported inflation.
How in particular can the Central Bank predict a reduction in inflation as early as end of this year when factors like the war in Ukraine is outside of our control.

3.26 The Central Bank responded that the PG2023 in addition to the infrastructure activity is expected to provide increases in the accommodation (motels/hotels) sector, services sector (especially transportation), agriculture sector for supplies for games and local demand due to influx into town.
Utilities and telecommunications sector are also expecting an increase.

Also given the next stage in the road will be after the PG2023 this will like then contribute to growth in 2024.

3.27 In relation to inflation the movements from last year to this year are staggering however most of the price effects were in last year and do not expect further major movements this year.

The component most likely to affect local inflation will be fuel prices.
Public Accounts Committee Report: May 2023 3.28 The Committee noted the Central Banks submission and requested that the additional information sought be made available before the report is issued.
01 Solomon Islands Electoral Commission Variation in appropriation Recurrent - Variations in Appropriations Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates 101-010-0000- 22806 101-010-0000- 22809 Election & By Elections Registration of Voters 123,224,468 -100,000,000 23,224,468 75,622,856 -44,044,198 31,578,658 Total 198,847,324 -144,044,198 54,803,126 Purpose: Funding revised through variation under the Solomon Islands Electoral Office (SIEO) to support other SIG ministries spending priorities and commitments under additional recurrent expenditures.
Issues of Concern Matters of concern raised by the Committee include the following: 3.29 The Committee queried why the variation removed a significant portion of the SIEO approved budget and whether the planned elections are at risk.

3.30 The SIEO pointed out that they have received donor support from the Australian Government totalling AUD20 million and expect to have funds transferred most likely within the next two weeks.
DFAT is funding in two phases in 2023 $20 million and in 2024 a further ADD5 million is also provided for actual elections.

3.31 The Committee queried whether the budget allocated is enough and whether there is expected savings next year given both National Government and Provincial Government will likely be run together.

3.32 SIEO indicated current amount is in line with their plans for this year and will look at next year's needs in next budget cycle.
Given the impending advance warrant a further supplementary budget for 2023 is expected.

Public Accounts Committee Report: May 2023 3.33 The Committee further sought to understand whether the total variation of $54 million which includes $23.2 million for elections and by elections for this year is still expected to be used for elections.

3.34 The SIEC stated that the $23.2 million is part of the election preparations and not part of the bye-elections.
The West Kwara'ae bye-election will be funded from the budget savings from the Provincial elections held last year 2022.

03 Ministry of Agriculture and LivestockDevelopment Additional Supplementary Expenditure - Development Expenditure Estimates of the amount further required in the year ending 31 December 2023for the services of this head: $3,050,000 Subhead/Item Description Original Estimates Supplementary .
Revised Estimates Estimates 102-001-0064- 25007 102-001-0054- 25007 Total Fixed Services Grant 1,000,000 1,050,000 2,050,000 Fixed Services Grant 7,792,639 2,000,000 9,792,639 8,792,639 3,050,000 11,842,639 Purpose: This amount provides additional funding for revitalization of Commodity Export Marketing Agency (CEMA) and 2023 Pacific Games support to strengthen and to elevate the opportunities for famers to ensure the local food production is strong to address the catering needs during the Pacific games.
2.

Issues of Concern Matters of concern to the committee are as follows: Strategies for Farmers' Support for the Production of PG 3.35 The committee questioned strategies that would be used for farmers' support towards the production of crops, food crops, vegetables, etc.

for the Pacific Games.

And if a Public Accounts Committee Report: May 2023 program is currently in a plan to carry out the survey and support through the Ministry.
The committee anticipated a large number of people will be coming in for the games and at least 10,000 people from participating countries and another 20,000 from Provinces which has raised concern about the programs and the need to identify the right farmers that have the production capability and capacity of crops so that the associations plant the right crop and vegetables.

3.36 The Ministry of Agriculture and Livestock Development (MALD) has already progressed with its plan for the Pacific Games.
The taro farmers have been identified and planting has started already.

The Ministry has signed an MOD with the identified association of piggery, poultry, layer, and honey.

The Ministry is working closely with the identified association and farmers.

The vegetables will start in June.

Fruits suppliers have been identified already.

The support is progressing along with infrastructure for the poultry and food works and operation.
Negotiation with the Bulk shop has already been completed for the storage and slaughter assistance towards the PG2023.

In preparation, the Ministry helped farmers to identify farmers for the post-harvest and even to care for the plant and the up keeping of plants.

The Ministry also identified training for meat inspectors and paramedics relating to the Pacific Games and assessed the packaging and processing with the association, especially with honey and other associations.
3.37 As per the Ministry of Agriculture's work plan, root crop farmland preparations were scheduled to begin in February 2023, and planting was to be completed by the end of March 2023.

As for Vegetable crops, farmland preparations are expected to begin in June 2023, and the raising of seedlings and planting is to take place in July and August 2023.
Fruits and tree crop activities are to begin with brushing and pruning in April and May 2023, however, the Ministry is yet to start due to the slow process of accessing funds.

To ensure these farms are well managed to increase production and produce quality crops, five (5) training activities were also selected and developed to increase farmers' knowledge and skills.

These trainings were scheduled to be conducted in April however we are yet to start due to the slow process in accessing funds.
Fg 3: 2023 PG2023 FOOD SUPPORT PROGRAM WORK PLAN 2023 PG2023 FOOD SUPPORT PROGRAM _!

'YORKPLAN: January - Novem_l:>_er2023 CROPS ACTIVITY Root Crops LandQfEj)aration Planting Management Harvesting Vegetable Crops Land preparation MONTHS I 11 !ill til h1L cl ,I ~ I) ,'UU ~ W 2Additional submission, IvlALD.
15th May 2023 Public Accounts Committee Report: May 2023 Planting Management Harvesting fruit Tree Crops Brushing TRAINING Pruning Bagging Harvesting PHC/IPDM Fertili zexet Pesticides Post-Harvest Management J::3001< Keeping H 'IJ ~ ~ 3.38 Farms and farming groups who will be supported under this program were selected based on criteria including 1) those whose farming is currently operational, 2) those who have had some experience as food crop suppliers to institutions in the past or currently 3) Farmers who are registered and have the potential for expansion and 4) those farms who have access to the road for transport as well as close to Honiara- A farm survey was conducted with farmers to confirm they meet the criteria.
3.39 A total of Twenty-One (21) Farmer groups and associations were identified and selected to be supported under the program.

The Selected farmer groups were categorized into three (3) enterprises including Root Crops, Fruits, and Vegetables.

These groups of farmers were selected across three Guadalcanal and Malaita Provinces.

Unfortunately, only Guadalcanal Province started to implement the program in late February 2023.
The Malaita Province Taro farmer had begun preparations late in April due to uncertainty of support.

Selected Fanner Groups and Associations T, able 1: Identi ied and selected farmer groups' Crop_ Root Crops GFA Partners GFA Farmer group Phillip Tuke Kikisodoa Gabriel Bunia Diana Pitakere Aruligho C/Mission 3 Additional submission, l'vIALD.lSd, May 2023 4 Additional submission, MALD.
15th May 2023 Cro_])_ Taro Yam Pana Taro Taro Taro Taro Taro Ha 1 0.7 0.7 2 1 0.5 0.5 2 Province Guadalcanal Guadalcanal Guadalcanal Guadalcanal Guadalcanal Guadalcanal Public Accounts Conunittee Report: May 2023 Aruligho Catholic Mission JCPU JTRehoboth MK Farm Fresh Agnes Puti John Gapu Nancy Challyn Leonis Vota JCPU JT Rehoboth Enterprise MK Farm Fresh Francis Tanaka Agnes Puti Atunoda Fruits Vegetables Maina Enterprises Maina Enterprises St Martins Marist Bebekama Nil TAS Field Organ SPK SVG Taro Taro Taro Taro Cassava Taro Fruits Fruits Fruits Pineapples Vegetables Vegetables Vegetables Vegetables 0.25 Guadalcanal 0.25 Guadalcanal 0.25 Guadalcanal Guadalcanal 0.5 Guadalcanal 1.7 Malaita 2 Guadalcanal 2 Guadalcanal 1 Guadalcanal 1 Guadalcanal 5 Guadalcanal 2 Guadalcanal 2 Guadalcanal 3 1 Guadalcanal 30.35 3.40 Memorandum of Understanding (MOD) have been signed with piggery and poultry associations.
Only the Bees association agreement is still waiting for review.

The MOU are signed by MALD, the Ministry of Finance and Treasury (MoFT) and relevant farmers for grants for materials and cash.

Stock for pigs needs to be ready now so the gestation period for new pigs arrive in time for PG2023 in November.

This requires that funds need to be released now.


Recommendation The Committee notes that the Ministry of Agriculture and Livestock Development's plans for PG2023 food needs are not yet finalised and require immediate support from to ensure that plans are delivered as expected.

The Committee the Government recommends the PG2023 grants for the Ministry of Agriculture and Livestock that Development are prioritised to allow farmers to prepare in time for PG2023.
3.41 The Ministry confirms there are no supply plans for beef to the PG2023.

3.42 The committee is concerned about the cost of imports, and whether MOFT is exempted from imports.

3.43 The Ministry noted that they can liaise with MoFT to further discuss.

Producer pricing must be agreed upon between the Ministry and the producer.

The time frame is crucial.


3.44 The Committee further queried what the Ministry's plans were to hold the farmers to account for their commitments including delivery of suitable quality products expected under the MOD.

3.45 The Ministry stated that they will assist farmers to deliver to the right standard.

Caterers who are paid under the National Hosting Authority budget will decide which Public Accounts Committee Report: May 2023 distributor to buy from.
For poultry and bee associations the Ministry will provide cash to a distributor to buy from farmers and caterers will buy from distributor.

3.46 The Committee pointed out previous report findings that Agriculture is a vital sector for economic growth prospects would do if funding was significantly increased in the future?

in Solomon Islands and asked the Ministry what they 3.47 The Ministry responded that with sufficientresources they would support farmers to achieve commercialscale.
Finding markets for our farmers is not the issue.

It's the quality of our products, for example slaughter facilities must be accredited.

We need the infrastructure for both PG2023and after the games.

Kava for example is currently facing challenges in quality.

It is important we meet the requirements of the market.
05 Ministry of Education and Human Resources Development Variation in appropriation Recurrent Budget - Advance Warrants Estimates of the amount further required in the year ending 31December 2023for the services of this head: $17,557,335 Subhead/Item Description Education Materials 201-055-0000- Reference & 22208 201-064-0000- Reference & 22208 Education Materials 201-005-0000- Others - Local Other 22517 Costs 201-078-0000- Others - Local Other 22517 Costs 201-058-0000- Capex - Computer 23013 Software and Hardware Original Estimates Supplementary Estimates Revised Estimates Nil 3,271,870 3,271,870 3,140,000 10,000,000 13,140,000 238,000 1,000,000 1,238,000 Nil Nil 2,057,335 2,057,335 1,228,130 1,228,130 Total 3,378,000 17,557,335 20,935,335 Explanatory Note: Budget Support funded by the Government of Australia through the Department of Foreign Affairs and Trade (DFAT)to fund Ministry ongoing activities.
Public Accounts Committee Report: May 2023 Additional Supplementary - Recurrent Expenditure Estimates of the amount of this head: $21,064,345 further required in the year ending 31 December 2023 for the services Subhead/Item Description Original Estimates Supplementary Estimates Office Rent 4,090,716 520,764 Revised Estimates 4,611A80 101-001-0000- 27004 101-051-0000- 27004 101-063-0000- 27004 101-072-0000- 22109 101-054-0000- 25002 101-076-0000- 25026 101-077-0000- 25016 101-075-0000- 25012 101-068-0000- 22656 101-068-0000- 22651 101-001-0000- 22514 101-051-0000- 22405 Total Office Rent 2,040,000 1A22,817 3A62,817 Office Rent 2,200,000 520,764 2,720,764 Printing, Stationery & Photocopying 2,541,021 3,000,000 5,541,021 ECE Grant 1,955,000 1,500,000 3A55,000 Basic Education Grant Senior Education Grant 69,059,612 4,500,000 73,559,612 42,802,269 3,500,000 46,302,269 T.V.E.T.
Grant 3,324,520 1,000,000 4,324,520 Water 1,140,000 700,000 1,840,000 Electricity 760,000 700,000 1A60,000 Public Servants - Annual Leave Fares Training - Overseas 1,897,593 700,000 2,597,593 90,045,961 3,000,000 93,045,961 221,856,692 21,064,345 242,921,037 Explanatory Note: Budget revised to provide additional funding to cover costs of office rental payments, printing of exam papers, shortfall in Grants and utilities.
Additional Supplementary - Development Expenditure Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $8,000,000 Public Accounts Committee Report: May 2023 Subhead/Item Description 102-001-0039- 23002 Capex-Non Residential Buildings Original Estimates Supplementary Estimates Revised Estimates 16,700,000 8,000,000 24,700,000 Total 16,700,000 8,000,000 24,700,000 Explanatory Note: This amount provides additional funding to rehabilitate the school infrastructures that were damaged or destroyed during the recent earthquake, flooding and burning and other additional schools.
Appropriateness of expenditure The Advance Warrant was approved by the Prime Minister on the 10th March 2023 as the supervising Minister for Finance and Treasury.

Issues of Concern Matters of concern raised by the Committee included the following: Additional Supplementary Development Expenditure 3.48 The committee enquired about the $8 million development additional expenditure, whether to finance the shortfall on the infrastructures, and which schools are affected.
The $8 million under supplementary budget is allocated for new projects.

This is to adress schools that are affected by the earthquake, manmade disaster (burning), and rehabilitation capital projects including facilities that have started but were not fully funded in 2022.

3.49 According to the Ministry's plan, the Ministry will execute this year if this is what funds are provided depending entirely on the budget.
Building that are planned range from a classroom,assembly hall, dining hall at Aligegeo, and Lecture Theater at KG VI which needs to be repaired.

The Ministry has phased out the budget and did not have the budget to continue.

Sufficient Budget to Achieve the Ministry's Annual Work Plan 3.50 The Committeeexpressed frustration with the budget shortfalls.The Committeenoted the original budget that was cut has again been increased.
Public Accounts Committee Report: May 2023 3.51 The Ministry assured the committee that the budget is sufficient for this year.

The Ministry has to adjust the usual planning because of the commitment of the government to host the Pacific game.

Of course, the school grant is an issue, and the Ministry hopes to receive the support to clear those outstanding invoices.

The delay of payment of grants is due to several reasons and has affected the operations of the schools, unlike the previous years.
Given insufficient budget, the Ministry work plan focuses more on adjusting activities to fit into the budget.

According to the plan, a budget should be able to execute for the year.

Allowances for Examination Markers (Education Grant) 3.52 A concern was raised by the Committee on the outstanding allowances for the examination markers.

3.53 Markers of the examination scripts for the F6, F5, and F3 were not paid last year due to the budget shortfall the Ministry faced in 2022.
The supplementary budget seeks to solve the historical issue but the Ministry notes that if the upcoming supplementation for this year allowances is not accepted then the Ministry will face the same situation again later this year.

Reprioritization of Projects 3.54 The Committee pointed out that MoFT has confirmed a Government funding gap of $204m and that if this is not funded by donors or debt it will then likely come from reprioritised development projects.
The priority project of the government is the PG23.

The committee is concerned that the Ministry's $8 million development budget will be diverted to the Games.

3.55 The Ministry noted these comments and will need to reprioritise its own plans using virements if required.

Status of Returning Philippines Students 3.56 A concern was raised regarding the uncompleted students who are repatriated from the Philippines due to COVID19 in 2020.
3.57 According to SITESA, an assessment was conducted and several strategies have been identified in terms of who should be going back, who should study online, and which students who can apply for other programs at in-country Institutions.

With the current listing, around 70 students required face-to-face classes.

The SITESA and MEHRD are currently sorting the outstanding fees for the year 2022 and that should enable them to get enrolled.
The 70 students are currently organizing their travel arrangements and logistics Public Accounts Committee Report: May 2023 have been carried out to travel in June or July.

Others will be doing studies online and in the country.

Bill Timeframe 3.58 The Committee questioned whether there is sufficientbudget to facilitate,bringing the Education Billto Parliament and its expected timeline for tabling.
3.59 The Ministry updated the Committee that the Education Billis ready for submission to Cabinet at the end of this month.

Integration of seasonal workers on their return 3.60 The committee is concerned that people with qualifications had left to work as seasonal workers but have since obtained full time employ in Australia.

The Committee wanted to hear what the Ministry's stand is on this?
3.61 The Ministry confirmed at least three candidates, a qualified civil engineer, a lawyer, and an economist, joined the seasonal workers in Australia and subsequently were employed elsewhere.

This is a brain drain for those whom we want to acquire the skills have left,however, they might gain experienceand exposure which they could then apply in country if we can attract them back.
3.62 The Ministry is working closelywith the Ministry of Foreign Affairs and the Ministry of Commerce, Industries, Labour, and Immigration to integrate our citizens into the country workforce on their return to country.

In the meantime, the Ministry is focused on the formal qualifications and the implementation of a national qualificationframework.
Constituency Scholarships 3.63 The committee enquired on the awarding of the constituency scholarships which would appear to still not include all the candidates that the respective Members of Parliament have selected.

3.64 The Ministry noted that they continue to have challenges with the constituency scholarship category in terms of both the selection and assessment of candidates through a merit process.
In 2020,the Ministry created an information package for all MPs in terms of identifying and endorsing criteria for the constituency scholarship category.

There are set criteria in terms of programs and institutions nominees can apply for in-country.

3.65 The Committee noted the information package but maintained that a Constituency Scholarship award is determined by the Member of Parliament not a merit process.
Public Accounts Committee Report: May 2023 06 Ministry of Finance and Treasury Variation in appropriation Recurrent - Advance Warrants Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $15,446,564 Subhead/Item Description 201-155-0000-22105 201-155-0000-22205 219-001-0001-22212 201-155-0000-22514 201-155-0000-22812 218-150-0000-22105 218-150-0000-22109 Total Consultancy Fees Office Stationery Disaster Preparedness & Relief Public Servants - Annual Leave Fares Realised Foreign Exchange Gain/Loss Consultancy Fees Printing, Stationery & Photocopying Original Estimates Nil Nil Supplementary Estimates 4,423,147 5,000 Revised Estimates 4,423,147 5,000 Nil Nil Nil Nil Nil Nil 10,599,946 10,599,946 26,992 26,992 100,000 100,000 30,000 30,000 261,479 261,479 15,446,564 15,446,564 Explanatory Note: Budget Support funded by the Government of Australia through the Department of Foreign Affairs and Trade (DFAT), Asian Development Bank (ADB) and World Bank (WB) for Financial Management Information System upgrade to the D365 system and for Economic Stimulus Package to cushion the negative impact of COVID19.
Also, to support the National Disaster Management Office to payoff the COVID19 related arrears that were incurred in 2022.
Additional Supplementary - Recurrent Expense Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $102,824,543 Public Accounts Committee Report: May 2023 Subhead/Item Description 101-150-0000- 22212 101-150-0000- 22804 Total Disaster Preparedness and Relief SOE Recapitalization Original Estimates Supplementary Estimates Revised Estimates Nil Nil Nil 100,000,000 100,000,000 5,000,000 5,000,000 105,000,000 105,000,000 Explanatory Note: This amount provides additional funding to cater for the reconstruction of buildings and businesses damaged during civil unrest and riot in November 2021,and SIGsupport to the Development Bank of SolomonIslands (DBSI).
Appropriateness of expenditure The Advance Warrants was approved by the Minister of Financeon the 23rd February, 10th March and 26th March.

Issues of Concern The Committee noted the presentation from the Ministry of Finance and Treasury with notable key points as follows: Domestic Economy: 3.66 After more than 2 years of recession caused by the COVID19pandemic, Solomon Island's real GDP growth for 2023is projected to rise to 2.7 per cent before falling to 2.4 per cent in 2024.
3.67 The growth for 2023is 0.1per cent lower than predicted in the previous projection in 2022of around 2.8per cent.

3.68 The forecasted growth in 2023 reflects the positive recovery in the economy from COVID19and greater than expected resilience in key sectors such as agriculture and fishing, mining, wholesale and trade, construction, manufacturing, public and other business services.
3.69 Agriculture and hunting sectors are projected to rise by 3.3 percent in 2023,mainly driven by increase in production and demand for agriculture both domestic and international, aligned with the reopening of border restrictions.

3.70 The recovery in the informal sector and the PG2023 are anticipated to demand for agriculture, which supports the growth of the sector in 2023.
Public Accounts Committee Report: May 2023 3.71 Fishing activities are projected to slightly increase by around 0.1 percent in 2023 from negative growth in 2022, driven by increase fish catches and international and domestic demand for fish in line with the improvement in the supply chain.
3.72 Construction, wholesale and retail are projected to increase by 2.3 and 1.9 percentage point to growth respectively, while mining activities are expected to grow by1 percent in 2023, driven by the reopening of economy, with the relaxation of COVID19 restrictions in the second half of 2022.

This has improved the business turnover and investment than expected.
3.73 Major construction (including development infrastructure projects) are currently recovered due to improvement of supply of material and foreign labour into the economy.

Other planned private sector projects have also improved than anticipated.

3.74 Based on the annual consultation conducted early January 2023, most manufacturers have had a negative performance in 2022 as business conditions and operations declined by 20-40 percent compared to 2021.
3.75 Nevertheless, the manufacturing sector is expected to be positive by around 0.6 per cent in 2023, with the reopening of borders, relaxation of COVID19 restrictions and government support to businesses, and hence will contribute to the growth.
3.76 Business and service activities are expected to increase by 2.4 percent in 2023, as the COVID19 pandemic is expected to be at the low levels, associated with more than 50 percent vaccination rate and the expected boost from the ongoing national infrastructures in particular the Pacific Games Infrastructures and Tina Hydro Project, including other private projects.

3.77 Forestry and logging activities, however, are projected to further decline by 4.5 per cent in 2023 compared to the pre-COVID year.
This is derived largely from the expected downturn of log exports to around 1.7 million cubic meters associated with a decline in the number of licenses and general depletion of our forests resources.

3.78 The inflation rate is expected to increase between 4-5 percent in 2023.

This rate has been driven by high global fuel prices due to the Russian invasion of Ukraine are compounding inflationary pressures in the economy through elevated transportation costs and rising prices of imports.
Fiscal outlook Overall Revenue performance 3.79 SIG Revenue receipts collected by end of March 2023 is at $714 million, or 22 percent of the total annual estimates of $3,202.6million.

This is an under collection of $60.4 million or 8 percent against the 3 months expected revenue projection of $774.6 million.

Public Accounts Committee Report: May 2023 3.80 IRD collected $455.1 million or 26 percent collection of the totallRD revenue estimates of $1,783.7 million.
This is $35.3 million or 8 percent above the 3 months expected revenue estimates of $419.8 million.

3.81 Customs collection is $221 million or 22 percent collection of the total customs revenue estimates of $992.9 million.

This is $27.2 million or 11 percent under collection against the 3 months revenue projection of $248.2 million.
3.82 Other ministries non-tax revenue collection is $38.1 million or 9 percent collection of the total NTR collection of $426 million, which is $68.4 million or 64 percent under collection of the total NTR 3 months, expected estimates of $106.5 million.

3.83 On the overall expenditure performance, total SIG expenditure is $730.2 million or 16 percent of the total expenditure of $4,611.9 million.

3.84 Total recurrent budget is $704.6 million or 20 percent of the total recurrent budget of $3,441 million.
3.85 Development expenditure is $25.6 million or 2 percent of the total development budget of $1,170.9 million.

Development spending was slow in the first 2 months and slowly pick up in March as ministries work plans were approved by Ministry of National Planning and Development Coordination.
Supplementary Appropriation Bill 2023 3.86 The bill calls to authorise additional expenditure of $370,637,520 which includes $4,145,400Contingency Warrants (CW), $159,035,302Advance Warrants and additional and $63,412,620 under recurrent expenditures of $144,044,198 under development expenditures, for the services in the year ended 31st December, 2023. expenditures 3.87 The Minister for Finance and Treasury issued $20 million as CW provision under the 2023 Appropriation Act 2022.Therefore, the CW expenditures were budgeted for and still within the 2023budget framework.
3.88 The total sum of $4,145,400 was approved and processed through Contingency Warrant, funded by the government to provide services for the following expenditures; • Remuneration package for an urgent request for external Special Prosecutor to assist the Office of the Director of Public Prosecution under Ministry of Justice and Legal Affairs, to deal with high profile cases emanated from the civil unrest in November 2021.
S • SIG emergency support under the Ministry of Environment, Climate Change, Disaster Management and Met Services, to the government of Vanuatu and Temotu Province Outer islands that were affected by Tropical cyclones Judy and Kevin.

Public Accounts Committee Report: May 2023 • These expenditures were urgent and unbudgeted for, therefore are in order and within the provisions of the PFM Act 2013, section 58.
3.89 In relation to Advance Warrants (AW) in 2023, the total sum of $159,035,302 budget support funded by our Development Partners was approved and progressed through Advance Warrant provision to provide services on behalf of the government for the following expenditures including: • Ongoing planned recurrent activities under Ministry of Education and Human Resources Development (MEHRD).
• • Financial Management Information System (FMIS) upgrade to the D365 system, Economic Stimulus Package to bolster the negative impact of COVID19, and to Support the National Disaster Management Office payoff the COVID19 related arrears that were incurred in 2022 under MoFT • Health priority activities for implementation in 2023, funded by the Government of Australia, as well as support from the Republic of China (ROC) for construction of pre fab mental health acute ward.
• Budget support towards National Hosting Authority in preparation for the 2023 Pacific Games, under the Office of the Prime Minister and Cabinet.

• Asset maintenance and housing constructions under Ministry of Police, National Security and Correctional Services, funded by the Australian Government through DFAT.
• Budget Support for product development, visitors experience and COVID19 safety, under Ministry of Culture and Tourism, funded by the New Zealand Government through the Ministry of Foreign Affairs and Trade (MFAT).

• Development of the Solomon Islands Computer Emergency Response Team (SolCERT) project under Ministry of Communication and Aviation, funded by the Asia Pacific Network Information Centre (APNIC) Foundation.
• Budget Support towards Mekem Strong Solomon Islands Fisheries (MSSIF) Project, under Ministry of Fisheries and Marine Resources, funded by the New Zealand Government through MFAT.

• Budget Support funded by the Australian Government through the Department of Foreign Affairs and Trade (DFAT) for ongoing reform programs and public service transformation strategy, under Ministry of Public Service.
Public Accounts Committee Report: May 2023 Additional Supplementary expenditures 3.90 The government has approved the sum of $144,044,198under recurrent expenditures supplementary and $63,412,620 under development expenditures, as additional expenditures to support new commitments, these are: • Additional funding to cover costs of officerental payments, printing of exam papers, shortfall in Grants and utilities under Ministry of Education and Human Resource Development.
• Reconstruction of buildings and businesses damaged during the civil unrest in November 2021,as well as SIGsupport to the Development Bank of Solomon Islands (DBSI),under Ministry of Finance and Treasury.

• Outstanding payments of work already done last year, 2022 and additional work pressures under Ministry of Infrastructure Development.

• The establishment of SIG Newspaper Printer, outstanding from last year 2022, a government priority under the Officeof Prime Minister and Cabinet.
• Purchase of new motor vehicles to boost police security and law and order services during the 2023 Pacific Games later this year, under Ministry of Police, National Security and CorrectionalServices.
• For purchase of passport books to cater for urgent demand, including officerental and utilities under Ministry of Commerce,Industry, Labour and Immigration • Revitalization of Commodity Export Marketing Authority (CEMA)and 2023 Pacific Games support to strengthen and to elevate the opportunities for farmers to meet the catering needs during the Pacificgames, under Ministry of Agriculture and Livestock • Rehabilitation of school infrastructures that were damaged or destroyed during the recent earthquake, flooding and burning, and additional schoolinfrastructure projects under Ministry of Education and Human ResourceDevelopment.
• Support towards Revitalization of CEMAand to purchase a Boat from overseas and machineries for constituenciesand local private operators and tar sealing of Auki road under Ministry of Infrastructure Development.

• Revitalization of CEMA and for Suava Economic Growth Centre under Ministry of Commerce, Industry, Labour and Immigration (MCILI) • Support towards Community Sea weed farming under Ministry of Fisheries and Marine Resources.
Public Accounts Committee Report: May 2023 • Hosting of the Solomon Games 2023, organized mainly to identify talents in preparation for the 2023 Pacific Games later this year under Ministry of Home Affairs.

3.91 The Committee noted the previous budget tabled and approved was for $1.18bn deficit.

Of this only about $350 million was funded by donors which suggests $865 million unfunded.

The current fiscal performance also shows that revenue collection is under expectations.
The Committee is interested to hear about the Ministry's plans for funding the budget deficit?

3.92 The Ministry responded that revenue collection in first quarter is usually lower so under collections is in line with seasonal expectations and we do expect this to increase over this year.

3.93 Inrelation to budget deficit the remaining funding gap is $204.9 million for the current quarter.
The Government has secured $1.240bn in development financing including budget support, $432 million from domestic bonds, new policies generating $169 million additional revenue, and funds from 2022 budget savings totalling $241.2 million.

InJune 2023 the Ministry will undertake a mid-year review and will consider reprioritising Ministry budgets especially in development budget to address funding gaps.

Priority projects are Pacific Games, Constituency funds and essential services.
3.94 The Ministry is also expecting there will be a number of procurement issues which will delay some projects likely pushing them into 2024.

The OPMC will identify which projects are affected.

Historically development budget execution is around 80% which likely higher due to PG2023 fever.

Also compliance checks have tightened which should provide some savings.

3.95 The Ministry is still looking for additional budget support and working with PMO to mobile donors.
On domestic bonds $432.5 million already allocated against a $865 million limit allocated this year.

If there is more demand from the public we can increase allocation from domestic sources.
Recommendation The Committee remains concerned that budget funding gaps and unilateral withdrawal of Ministry budgets, especially development budgets, will have a significant impact on public service delivery as well as likely longer term impacts on economic growth, The Committee recommends the Ministry of Finance and Treasury secure suitable funding without the need to undermine Ministries development pLans in 2023. that 3.96 The Committee noted that a significant reduction to SIEO office 2023 budget and reallocation to other ministries is being proposed in this supplementary budget and sought an explanation from the Ministry.
Public Accounts Committee Report: May 2023 3.97 The Ministry responded that DFAT has stepped in to fund the upcoming elections with the AUD30 million financing agreement to be signed soon.

3.98 The Committee queried how the Ministry will ensure that priority expenditure is made and delivered on plan?

3.99 The Ministry advised that there is a priority expenditure listing in place.
'Pacific Games (PG23) is one of the priority payments totalling $364 million to National Hosting Authority (NHA) which is already approved and must be spent by end of July.

These are scheduled payments already in place so NBA can commit now.

Others include MRD allocation to be released before 4th quarter.

The Ministry can provide details on planned scheduled payments which is programmed to mirror finance from bonds and other sources.

Delivery is a priority so we plan for this too.


This plan has already been provided to all Ministries which sets out Government priorities.

3.100 The Committee further queried if this supplementary budget has allocatedbudget for tabling of new Bills?

3.101 Ministrynoted no request from ministriesfor budget on these bills so can only assume that current budget is sufficient.TheMinistrywill prioritisebased on Governmentpriority which the Attorney General will provide.
, 3.102 The Committeenoted the Ministry's payment plans and queried how the situation is with Government cash reserves.

3.103 The Ministry noted that the budget framework sets out both recurrent and development budgets which needs to be financed.

Current cash reserves stand at $70 million which has reduced from last year.

So, the Ministry's current strategy is to match recurrent expenses in line with recurrent revenue received so reserves are only slightly impacted.
Without any new budget support or bonds, the Ministry will continue to manage this way.

Current balance amounts to about one month's payroll plus a small buffer.

So,with expenditure rising we are expecting revenue to also increase.

Realisation on bonds and budget support will allow increased expenditure.

3.104 These control measures on managing cash reserves will create frustrations.
The Ministrywill prioritise essential servicesand will resolve with each Ministryin line with the procurement guidelines and rules.

In emergencies, bid waivers could apply, but everyone must be aware of requirements which if not met will not be paid.

3.105 The Committeequeried the situation with the delay in payments to scholarships?

3.106 The Ministry responded that about 30%budget on scholarships has been spent and is being monitored.
There is an ongoing issue with bank account details which slows down Public Accounts Committee Report: May 2023 processing.

Line ministries should be sorting out these details with goal to clear up to March this month.

3.107 The Committee acknowledge the strict requirements that MOFT has put in place and commend the Ministry in ensuring proper governance requirements are being met with the Ministry.
09 Ministry of Health and Medical Service Variation in appropriation Recurrent Budget - Advance Warrants Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $26,187,489 Subhead/Item Description 201-001-0000- 22202 201-001-0000- 22212 201-001-0000- 22301 201-203-0000- 22402 201-001-0000- 23002 201-001-0000- 23008 201-001-0000- 23014 201-001-0000- 23015 215-209-0000- 23002 Total Original Estimates Supplementary Estimates Revised Estimates Nil Nil Nil 3,367,892 3,367,892 2,300,000 2,300,000 950,000 950,000 Drugs & Dressings Disaster Preparedness & Relief Maintain - Non Residential Buildings Training - In Service 1,600,000 1,050,000 2,650,000 Capex-Non Residential Buildings Capex - Canoes and Boats Capex - Specialised Equipment Capex - Other Equipment Capex-Non Residential Buildir~gs Nil Nil Nil Nil Nil 16,516,320 16,516,320 70,000 70,000 748,783 748,783 381,000 381,000 803,494 803,494 1,600,000 26,187,489 27,787,489 Explanatory Note: Budget Support funded by the Government of Australia through the Department of Foreign Affairs and Trade (DFAT) and Republic of China (ROC) to cater for Public Accounts Committee Report: May 2023 outstanding 2022 annual operation planned activity that will be implemented in 2023 and for construction of pre-fab mental health acute ward.
Appropriateness of expenditure The Advance Warrant was approved by the Minister of Finance on the 23rd February and 10th March 2023.

Issues of Concern Matter raised during the public inquiry include the following: 3.108 Shortage of Medical Supplies/Drugs - The Committeeunderstands that last year, our country had experienced shortages in drug supplies and so is interested to know the current status of supplies now, and whether the current stockwill be able to sustain us for the rest of this year.
3.109 The Ministry of Health and Medical Serviceresponded by stating that as of February, Solomon Islands has 78 per cent of drug supplies and 83 per cent on consumables.

The Ministry also admitted that they did have some shortfalls along the way but Department of Foreign Affairs and Trade (DFAT)were able to fill the gap, especially for emergency drugs.

Such shortfalls do happen because our procured suppliers will likely arrive around May, June, July & August.
3.110 The Ministry of Health and Medical Servicesunderstands this continuous challenge on shortage of drugs and so has invested in technical support to track and monitor and report on the status of such procurements.

3.111 Delay of Medical Containers at the Port- the Committee noted the shortage of drug supplies is partly due to delay of clearanceofmedical containers at the international wharf by the Customs for lack of payment by the Ministry of Finance and Treasury.
The Committee is interested to know if such issues have been sorted.

3.112 The Ministry of Health and Medical Services stated that in terms of the container clearance from the port, it is one of their on-going challenges and this is to do with payment.

Currently there is one container at the port waiting for clearance that they have made the necessary paperwork for payment to the Ministry of Finance and Treasury already and so hopefully they pay soon and ready for clearance.
3.113 The Ministry also informed to the Committee that they have already discussed with their counterparts from the Ministry of Finance and Treasury to prioritise such payment at all times.

Public Accounts Committee Report: May 2023 3.114 Sub - Head (Training - In Service) - The Committee queried what kind of training this allocation is for and who will benefit from it.
3.115 The Ministry of Health and Medical Service stated that this amount of $1,600,000is for the graduating nursing students from Solomon Islands National University (SINU) for their Supervisory Internship Program (SIP) to the Provinces.

3.116 Pacific Games Related Budget - The Committee is curious to know some updates on what the Ministry is doing in preparation towards the Pacific Games 2023.
3.117 The Ministry of Health and Medical Services stated for Ministry's commitment towards the Pacific Games, there is an allocation of $4.5 million in the Development Budget for this year and other donor partners are also providing support.

3.118 The Ministry also inform the Committee that at the moment they are working with the Games Organising Committee (GOC).
Firstly, in terms of clinical health, they are providing Doctors and nurses at the sports venues and secondly, public health, in relation to food inspection and others.

The Ministry will also renovate the Emergency Ward/Rehabilitation Ward at NRH for any serious injured cases from the games.

3.119 The Ministry also informed the Committee that during the Pacific Games, the floating Hospital will also be back in country to provide support during those two weeks of games.
10 Ministry of Infrastructure Development Variation in appropriation Additional Supplementary - Recurrent Expenditure Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $9,415,853 Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates 101-250-0000- Maintain - Roads and 22303 Total Bridges 3,721,880 9,415,853 13,137,733 3,721,880 13,137,733 funding to cater for additional work 9,415,853 Explanatory Note: This amount provides additional pressures and outstanding arrears of work already done last year, 2022.
Public Accounts Committee Report: May 2023 Development Expenditure Estimatesof the amount further required in the year ending 31 December2023 for the services of this head: $27,000,000 Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates 102-001-007S- 2S007 102-001-0033- 23007 102-001-0033- 23010 102-001-007S- 2300S Total Fixed ServicesGrant Nil 6,000,000 6,000,000 Capex - Ships S,OOO,OOO 3,000,000 8,000,000 Capex - Plant and Machinery Capex - Roads and Bridges 7,000,000 8,000,000 lS,OOO,OOO 33,000,000 10,000,000 43,000,000 45,000,000 27,000,000 72,000,000 Explanatory Note: This amount provides additional funding to cater for revitalization of CEMA and to purchase a Boat from overseas and machineries for constituencies and local private operators and tar-sealing of Auki road.
Issues of Concern The Committee deferred the scheduled meeting as key executive members of the Ministry were not available.The Ministry was subsequently invited to provide a written submission.
14 Office of the Prime Minister and Cabinet Variation in appropriation Recurrent - Advance Warrants Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $92,278,761 Subhead/Item Description 201-300-0000- 25034 2023 Pacific Games Preparation Total Original Estimates Supplementary Estimates Revised Estimates Nil Nil 92,278,761 92,278,761 92,278,761 92,278,761 Public Accounts Committee Report: May 2023 Explanatory Note: Budget Support funded by the Government of Australia through the Department of Foreign Affairs and Trade (DFAT) to support the National Hosting Authority in preparation for the 2023 Pacific Games.
Additional Supplementary - Recurrent Expenditure Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $2,000,000 Source/Subhea Description dl Original Estimates Supplementary Revised Estimates Estimates Item 101-301-0000- 23011 101-301-0000- 22110 Total Capex - Office Equipment Publicity & Promotion Nil 1,500,000 1,500,000 397,663 3397,663 500,000 897,663 2,000,000 2,397,663 Explanatory Note: This amount provides additional funding to cater for the establishment of SIG Newspaper Printer, outstanding from last year 2022.
Appropriateness of expenditure The Advance Warrant was approved by the Minister on the 17thMarch 2023 Issues of Concern Matter raised during the public inquiry include the following: 3.120 Additional allocation of $364 million for the Pacific Games - The Committee noted from the presentation of the Ministry of Finance and Treasury that they will provide additional fund allocation for the Pacific Games.

The Committee is interested to know the reason for such additional allocations.
3.121 The Office of the Prime Minister and Cabinet stated that the original budget for the Pacific Games that was approved a few years ago by the cabinet under the leadership of former PM, Hon.

Rick Houenipwela was around $550 million dollars.

However, since then, the costing went up for two reasons.
One, COVID19 pandemic has increased costs and secondly, the Solomon Islands Institute of Sports (SINIS) was not part of the original budget and was brought in along the way from the recommendation by the Hosting Authority.

Thirdly, all the local components (UXOs & Landfills) of the donor-ftmded Public Accounts Committee Report: May 2023 projects were not part of the budget and so the need for the Government to meet those costs as well, hence those unbudgeted costs call for further allocations.
3.122 The Officeof the Prime Minister further stated that for this year PacificGamesbudget that fallsunder the National Hosting Authority (NHA) is $364 million and of that amount $245 million alone is for the Games Organising Committee.This is because this year is the year to spend in preparation for the PacificGames.

3.123 Source of the Additional Costs - The Committee is interested to know the donor partners that the Government has worked with to step in and fund those additional costing.
3.124 The Officeof the Prime Minister and Cabinet stated that National Hosting Authority has been involved in various budget support dialogues with our partners for that $364 Million.The Officeof the Prime Minister is fairly confident that they will be able to secure some donor partners soon to help finance the additional cost through the Ministry of Finance and Treasury.
3.125 SINU campus Security and access from surrounding Squatters - The Committee is concerned about the security of the Games Village at Panatina Campus and Kukum Campus.

The Committee understand that the access road to town for those surrounding squatters, especially Panatina Campus runs through the campus and so it is going to be a security issue when the athletes are going to occuPythose dormitories.

Hence, how is the Government going to address such issue?
3.126 The Officeof the Prime Minister and Cabinet stated that part of their agreement with the Australian Aid is to ensure that there is a temporary fencing for the games period as well.

The Office of the Prime Minister also emphasised that security is a big concern of NHA as we want the athletes to enjoy their time here with us.
Recommendation iThe Committee noted the importance of security during the Pacific Games and recommends that the NHA in consultation with the Police, Ji)l10perlyaddress security issues weH ahead of arrival of visitors into Solomon Islands including at the Panatina and Kukum Campuses.

3.127 Deadline for the Seven main Games Infrastructures - The Committee is concern about the completion timeframe of the GamesInfrastructures, if they are going to be ready on time or not.
3.128 The Officeof the Prime Minister and Cabinet stated that the completion date is one of their priority tasks and they are fairly confident that those facilities will be ready for Public Accounts Committee Report: May 2023 handover by the end of August.

For the main stadium projects, they are now working on the decoration and finishing.
3.129 The Office of the Prime Minister and Cabinet further stated that the end of August is the deadline because according to their plan, by October those facilities will be handed over to the Games Organising Committee to furnish the empty facilities with necessary furniture and equipment.

Except for the Solomon Islands Football Federation academy which they are worried about and will need close monitoring on their progress.
3.130 Catering - The Committee is concerned about the people who will be responsible to feed these athletes and which farmers are going to provide their produces for the caterers.

3.131 The Office of the Prime Minister and Cabinet stated that Games Organising Committee is responsible for the caterer's contracts and they are looking to do two major contracts.
One of them will be responsible to feed all the athletes and they are the Master caterer; they will be operating out at the KGVIl multi-purpose hall and it is a $47 Million contract.

3.132 For the Games Villages, the local caterers will bid for it, and once contracted they will help to feed those athletes that those various locations.

This is a $35 million contract.

Also once contracted those local caterers will be responsible to work with the farmers for their products.
3.133 The Office also noted the need for farmers to produce double the products they are producing now for Honiara residents.

3.134 National Sports Council (NSC) - The Committee is concern about the management of the games facilities in the long run.

3.135 The Office of the Prime Minister and Cabinet stated that since the Pacific Games 2023 Act 2017 was passed, NSC has been equipped and capacitated and now they have five divisions.
The next step is to amend their Act to also capture things that are included now and finance to do its work 3.136 The Office of the Prime Minister and Cabinet also stated that they need to amend section 35 of the Pacific Games 2023 Act in order for NHA to pass on some facilities that own the land.

Hence, the amendment bill expected to come to the Parliament soon.
3.137 Accommodation for visitors of the Pacific Games - The Committee understands that 5000 athletes will be expected for the Games and that their accommodations has been arranged.

Nevertheless, the Committee is concerned about the visitors who will travel in to watch the Games, and if there are enough accommodations to cater for those visitors as well.
3.138 The Office of the Prime Minister stated they are confident to care for the teams that are they are not confident of the families of these athletes that will travel coming in.

However, Public Accounts Committee Report: May 2023 into the country to watch the games.

Currently, all the accommodations are fully booked and it is time for local accommodations to prepare for it.
Recommendation The Committee is cencerned that there will be insufficient accommodation capacity fnr the period of the Pacific Games for non-athletes and tourists.

The Committee recommends that NHA consider additional plans to encourage private sector engagement and any other options on a recovery basis to increase aecommodatiou capacity in Honiara.
16 Ministry of Police, National Security and Correctional Services Variation in appropriation Recurrent Budget - Advance Warrants Estimatesof the amount further required in the year ending 31 December2023 for the services of this head: $3,223,496 Subhead/Item Description Original Estimates Supplementar y Estimates Revised Estimates Consultancy Fees 201-330-0000- 22105 201-330-0000- Maintain - Non Residential Buildings 22301 201-330-0000- Maintain - Residential 22302 201-330-0000- Maintain - Specialised 22313 Buildings Equipment Total Nil Nil Nil Nil Nil 206,652 206,652 834,948 834,948 920,948 920,948 1,260,948 1,260,948 3,223,496 3,223,496 Explanatory Note: Budget Support funded by the Government of Australia through the Department of Foreign Affairs and Trade (DFAT)to cater for asset maintenance and housing constructions.
Recurrent Expenditure - Additional Supplementary Public Accounts Committee Report: May 2023' Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $2,000,000 Subhead/Item Description 101-001-333- 23009 Capex - Motor Vehicle Original Estimates Supplementary Estimates Revised Estimates 3,000,000 2,000,000 5,000,000 Total 3,000,000 2,000,000 5,000,000 Explanatory Note: This amount provides additional funding to cater for purchase of new motor vehicles to boost police security and law and order services during the 2023 Pacific Games later this year.
Appropriateness of expenditure The Prime Minister approved the Advance Warrant on the 10th March 2023.

Issues of Concern Matters raised during the public inquiry include the following: 3.139 Motor Vehicles - The Ministry stated they would receive a total of $2,000,000 to fund additional vehicles for RSIPF.
The Ministry continues to state that vehicle is a critical need for RSIPF and funding of these vehicles will further enhance the Police Response Capability in preparation towards the Pacific Games 2023 (PG23) and not only that but also for the National General Election in 2024.

3.140 The Committee questioned how many vehicles are expected to be purchased by the Ministry and if these vehicles are on order already.

The Ministry is expecting to purchase six vehicles.
3.141 The Committee commented that the RSIPF is an Agency that needs many logistical supports and that vehicles are important in this case.

The Committee continue to state that the Prime Minister Office and Cabinet (NHA) will purchase 400 vehicle and if the RSIPF will be receiving some vehicles from this purchase.

3.142 The Ministry responded that it is in dialogue with NHA to also receive some vehicles from their pool.
Public Accounts Committee Report: May 2023 3.143 The Committee commented from observation that the vehicles are not always in good condition and that maintaining vehicles in good condition would also reflect the status of the police in the country.

3.144 The PS responded that vehicles are an ongoing challenge.
However, in terms of governance of vehicle usage the Ministry is assuring the Committee that it is constantly trying to review and strengthen the governance systems in place to ensure strong discipline to strengthen mobility, capability and resources within the Ministry.

3.145 The next question raised by the Committee is regarding the amount of $5,000,000 requested by the Ministry against the Additional Supplementary Budget.
The Hosting Authority is planning to acquire vehicles to be used during the PG23 and that the RSIPF is also requesting the same need.

It is understood that there are vehicles that are already funded by the China Government.

Have thesebeen used or not?

3.146 The Commissioner of RSIPF responded that the 6 vehicles will be part of the 16 vehiclesplanned to be purchased.
The 6 vehicleswill be part of the 4 clusters designed for PG23.The Ministrywill seek partner supports for the other 10vehicles.Thosevehiclesare specificallydesigned for events like PG23;hence, the purchase is expensive due to their accessoryrequirements.

3.147 The Committee is concerned about 500vehicles will be purchased for PG23 and the fact that the main road is already congested.
Is there a contingency plan to address the traffic congestionthat will affectthe police vehiclesor the Garnesvehicles or fleet during the Garnes, as there will be huge traffic congestion that will be experienced during the Garnes?

3.148 In terms of traffic congestion, the Commissioneris requesting the cooperation of the public and all GovernmentMinistriesto address this concern.Another contributing factor is that there is only one main road in Honiara.
There is no other alternative roads, hence, a number of plans have been discussed to better manage the roads and to address traffic congestion during the Garnes.

The Commissioner commented that the public and the public transport owners to listen out to conferencesheld on Fridays to familiarize with security and police updates for the upcoming Garnes.The cooperation of the public and the public transport is very much needed in preparation and during the Garnes.
3.149 The Committee commented that the public transport is so unreliable and that HCC is planning to establish public transport services as well.

The Committee is interested the RSIPFresponse to the Short Bus Route in the Capital and whether this will be addressed immediately to improve the public transportation during Garnes.

3.150 The Commissionerof RSIPFcommentedthat the RSIPFis working closewith the HCC and other responsible authorities to address the Short Bus Route.
Public Accounts Committee Report: May 2023 Residential!

Non-Residential Buildings 3.151 Regarding Maka Police Station, the construction is continuing and expected to be completed by the third quarter of the year.

The Committee however noted the absence of staff housing and queried when these will be built?
3.152 The Committee commented that one staff house alone is not adequate and it called for all future Projects to be a complete project that also addressed adequate houses to ensure full operation of police and security.

The Small Malaita hospital is a classic example that requires more important equipment and medications despite an excellent facility that was built and handed over to South Malaita region.
3.153 The Ministry responded that it is planning to build 3 more staff houses including Barracks in the years to come at Maka Police Station.

This would be possible if the Ministry has more funds available.

However, the current budget catered for only one staff house.

The Ministry does have to balance multiple project needs across other provinces which is main factor limiting fully resourcing all sites on the limited budget available.
The Ministry will try its best to better-strategized project prioritisation in the future.

3.154 Policing!

Security - The Committee commented on the view of Security in the rural areas.

The Committee stated that Police Security in the rural areas is going down considerably.

The Maka Police Station is inactive maybe because of staffing issues.

This has given the rise, in particular the youth to engaging in unwanted activities.
It would be better if the Police are providing Security to the villages once a week, particularly in the southern region of Malaita Province.

This would ensure the presence of the police in the villages.

However, it is important that the Ministry have some funds already but need to have some more funds to strengthen security.

It is also important that the responsible Authorities to realise the importance of security and police presence during the Games.
3.155 The Ministry commented that the security concerns raised by the Committee are true.

However, as far as population is increasing, hence, the policy needs to expands and that other factors such as resources are also contributing, however, as the Ministry is continuing to review its governance systems, it will ensure that the system is competent to address the security issues whilst minimising gaps.

The police presence is important throughout the country.
The concerns raised against the West Are' are Constituency is true but that does not mean that the police will not respond to situations as they arise.

It is the hope of the Ministry that from medium to long term the current gaps will be addressed.

3.156 The Committee sought to understand what security plans are in place to address the squatters residing at the back of the SINU Panatina and Kukum Campus.

The athletes and officials coming for the Games will be accommodated at these campuses.
The security situation is a serious concern especially as the access roads for these squatter communities run through the existing campuses.

Public Accounts Committee Report: May 2023 3.157 The Commissioner for RSIPF commented that there is a team already working with the NHA and the Games Organizing Committee to address security at the Games venues as well at the accommodation venues.

RSIPF will also be working with the surrounding communities that are close to the accommodation sites.
3.158 The Commissioner of RSIPF commented that there would be a total of 200 plus Correctional Officers that will involve in the Games operations as part of the Joint Forces during the Games.

This will contribute to increasing the number of resources to cater for the number of Security Personnel that will be participating in the Operations during the Games.
3.159 Upskilling/Training - The committee noted the need for the Police Force to be professional at all times including in high profile events like the PG2023.

3.160 The Ministry is progressing the work on upgrading the existing police academy.

An Expression of Interest is already out.

Under the DCGA policy, the intention is to develop a program accredited to international standards.

We need qualified officerswith technical skills to ensure quality and progress.
Recommendation The Committee commends the Ministry of Police, National Security and Correctional Services' plans to build a professional police force to international standards.

The Committee recommends that the professionalization program for RSIPF be fast tracked to prepare the existing force for upcoming significant events like the Paeifie Games and to deal with the increasingly complex community needs.
20.Ministry of Culture and Tourism Variation in appropriation Budget Support - Advance Warrants Estimatesof the amount further required in the year ending 31December2023for the services of this head: $557,049 Subhead/Item Description 202-382-0000- 22105 202-382-0000- 22110 Consultancy Fees Publicity & Promotions Original Supplementary Estimates Estimates , 135,691 Revised Estimates 135,691 21,425 21,425 Nil Nil Public Accounts Committee Report: May 2023 202-382-0000- 22117 202-382-0000- 22301 202-382-0000- 22401 202-382-0000- 22404 202-382-0000- 23013 202-382-0000- 23015 Total Entertainment Maintain - Non Residential Buildings Conferences, Seminars and Workshop Training - Other Capex - Computer Software and Hardware Capex - Other Equipment Nil Nil Nil Nil Nil Nil Nil 38,089 38,089 152,355 152,355 42,850 42,850 23,329 23,329 59,514 59,514 83,795 83,795 557,049 557,049 Explanatory Note: Budget Support funded by the Government of New Zealand through the Department of Ministry of Foreign Affairs and Trade for product development, visitors experience and COVID19 safety.
Appropriateness of expenditure The Minister approved the Advance Warrant on the 24th February 2023.

Issues The Ministry was invited to provide a written submission.

21.
Ministry of Commerce, Industry, Labour and Immigration Variation in appropriation Additional Supplementary Recurrent Expenditure Estimates of the amount further required in the year ending 31 December 2023for the services of this head: $4,564,000 Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates 101-393-0000- 22115 101-393-0000- 22654 Passports 6,116,418 3,900,000 10,016,418 Internet, Radio and Satellite Nil 196,000 196,000 Public Accounts Committee Report: May 2023 101-001-0000- 27004 Total Office Rent 1,116,600 468,000 1,584,600 7,233,018 4,564,000 11,797,018 Explanatory Note: This amount provides additional funding to cater for the urgent demand for passport books, office rental and utilities.
Development Expenditure Estimatesof the amount further required in the year ending 31December2023for the services of this head: $16,062,620 Subhead/Item Description Subventions and Grant 102-001-0067- 25009 102-001-0070- Capex - Non Residential 23002 Buildings Original Estimates Supplementar y Estimates Revised Estimates 5,000,000 14,000,000 7,000,000 3,600,000 2,062,620 5,662,620 Total 8,600,000 16,062,620 24,662,620 Explanatory Note: This amount provides additional funding to cater for revitalization of CEMAand for Suava EconomicGrowth Centre.
Issues of concern Matters of concernraised by the Committee were as follows: 3.161 The committee noted the purchase of new passports, rent costs, and sought an explanation from the Ministry on what these are for.

3.162 The Ministry responded that new passports were required due to normal annual stocks not being sufficient due to the seasonal worker program.

Similarly, the space requirements for the immigration division has increased due to the seasonal workers programs.
The rental costs are for the transfer of the price control unit to Mokolo and ,in Auki.

Internet and radio costs for new building in Auki also included in supplementary bill.

3.163 The Committee queried why these costs were not included in last year 2023budget.

Public Accounts Committee Report: May 2023 3.164 The Ministry confirmed they did submit bid for an extra budget but was not accepted.
The increased pressure on labour of mobility after budget process meant that an additional supplementary budget is needed.

Usually no more than 5000 passports budgeted per year however, after the labour management unit was set up, this target has now exceeded 10,000 per year, which is the number, expected in the passport agreement signed.

In 2022, we ran out of passports twice and looked for funding.

Now in 2023 we have already used up 4500 of the 5000 target passports.
This supplementation will provide sufficient stock for 2023.

3.165 The Committee queried the requested development budget for CEMA.

This has been noted for some time and curious what has happened and planned for 2023.

3.166 The Ministry pointed out that the 2021 MOU signed between MID, MALD and MCILl to implement CEMA.

In 2021, budget was allocated.

In 2022 and 2023, insufficient budget was included compared to the plan.

The Ministry expected $24 million but this amount was not forthcoming.
3.167 The CEMA implementation plan is in three phases.

For the first phase budget was sufficient, however, the second phase in 2022 and 2023 there were budget cuts which affected implementation of the program.

Buying centres is main component outstanding.

Assessment of buying points to be completed for Noro, Choiseul, Buala, Manu in Malaita, Pakera in Makira and Lata in Temotu.

Nevertheless, due to lack of budget, only Malu, Honiara, and Pakera have been accredited and running.
Exports to date are 35metric tonnes in October 2022 and April 2023 240 metric tonnes exported from Pakera and Honiara.

Total export value is approximately $1.4million.

3.168 The Ministry further updated the Committee that only copra and cocoa are commodities regulated by CEMA.

Kava is being considered but for now is private sector lead.
3.169 The Committee noted the long lines in labour management unit (LMU) and questioned the Ministry on their plans to address these queues and improve the efficiency of the LMU processes.

3.170 The Ministry extended the ground floor on the existing Immigration offices instead of getting separate office.

This allowed for more people, more equipment, to better serve public demand.

The eastern end of the existing office will be dedicated office for LMU.
Access will be from the rear to better manage the crowd.

New processes to improve efficiency have been updated and implemented for 2023.

Each passport costs government USD100.

Fees are set at SBD 1000 so money collected is sufficient to cover passport costs.

Other fees cover the administration costs for passports.

The issue is that this division is self-sustaining however payments from MoFT are delayed which causes out of stock.
The Public Accounts Committee Report: May 2023 Ministry has proposed to MoFT to allow a separate account for the Ministry to collect these fees and pay for passport stock as and when needed.

3.171 The Committee sought an update on the OAG audit report on passports.

3.172 The Ministry indicated that they have responded to the audit queries raised by the Office of the Auditor General.
There are still a number of high-risk areas, which are being looked into and may require amendments to the Act to better address operational matters identified too.

3.173 The Committee sought an update on the CEMA revitalisation scheme and whether CEMA will still be supporting growth in the industry.

3.174 The Ministry pointed out that there is competition between CEMA and private sector.

Plans are to set up buying points in provinces closer to farmers.
These are likely to be in uneconomical areas where private sector does not operate and will require budget to implement.

3.175 The Committee noted that total imports still exceed exports and that the Ministry plays an important role in lifting exports.

There needs to be consideration for the right policy reform on imports and exports to support the country growth aspirations.
22 Ministry of Communication and Aviation Variation in appropriation Recurrent Advance Warrants Estimates of the amount further required in the year ending 31 December 2023for the services of this head: $818,331 Subhead/Item Description 231-410-0000- 23012 Capex- Communications Equipment 231-410-0000- Conferences, Seminars 22401 231-410-0000- Consultancy Fees 22105 and Workshop Total Original Estimates Supplementary Estimates Revised Estimates Nil 338,331 338,331 Nil , Nil Nil 80,000 80,000 400,000 400,000 818,331 818,331 Public Accounts Committee Report: May 2023 Explanatory Note: Budget Support funded by the Asian Pacific Network Information Centre (APNIC) Foundation to develop SolCERT project within the Ministry.
Appropriateness of expenditure The Prime Minister approved the advanced warrant in March 2023 as the Supervising Minister for Finance and Treasury.

Issues Matters of concern raised by the Committee include the following: 3.176 Advance Warrants - The committee sought to understand from the ministry the use of the Advance Warrants, the sum of SBD$818,331.00, million under the recurrent estimates budget head.
3.177 The Ministry stated that the amount is from grant financing, sought from the Asia Pacific Networking Information Centre Foundation.

The fund is to assist the setup of the Solomon Islands Computers and Emergency Response Team (SoICERT).

The funds will be used to procure firewalls and the server.
This is a national initiative that will allow the Ministry to ensure that the Ministry monitor the cyber security risks that including hacking in the local domain and put in place plans to mitigate damage to our information and data from hackers.

3.178 Training - The committee is concerned with the whole package of training for cyber security.

The committee would like know the Ministry's sustainability plans.
3.179 The Ministry stated, that in terms of sustainability, the consultancy would write up a plan to ensure the framework, roadmap and the right structure to operationalise and sustain our current cyber systems.

In terms of training, staff who undertake the training will have a certificate in security.

The training involved is to equip the staff in the area of Cyber Security and to have better understanding in risks in the cyber area.

The Ministry also have direct training from ICTSU in many areas.
Australia, Singapore and India are also supporting the Ministry in terms of advanced training.

The current systems are monitored daily with plans to add further staff including from Police in the future.

3.180 Long Term Training - The committee followed up on the full-time training of local experts to be trained in specific technical fields to gain Bachelors and Master's degree in order to have full capacity to monitor the information centre, rather to rely on consultants all the time.
3.181 The Ministry stated, they currently do not have qualified people, but the Ministry has started training for the local staff since last year 2022.

The Ministry further added, that Public Accounts Committee Report: May 2023 when consultants write the framework, the Ministry would look into other specific areas of training overseas to train four local staff.
The Ministry also stated that reform in the sector is ongoing, so the Ministry shall employ a higher calibre of people to monitor the information centre.

The Ministry has a plan going forward to ensure the establishment of the unit and to have 4 local staff employed to monitor and oversee the computer systems.

The Ministry is also looking into recruiting suitable qualified people for the monitoring of the information system.
3.182 The committee noted that the Ministry could work in conjunction with SITESA to identify relevant specific training for the locals to have our own local higher calibre people.

3.183 Pacific Games 2023 (PG2023) - The committee is interested to hear from the Ministry, how they are involved, either directly or indirectly, to support the PG2023.

3.184 The Ministry stated that their budget has dropped; however, the Ministry will use the current budget to support the Games.
Indirectly, the Ministry can be support to the PG2023 through communication and cyber security.

The Ministry also stated other physical elements to support the PG2023: the Ministry has taken down two huts in front of the airport and is painting at the current domestic airport to cater for the international arrivals.

The Ministry will do more painting and other interior installation of mirror, washrooms and restrooms at the arrivals.
At the new international airport, the Ministry will install a carving outside the airport area.

The Ministry also has plans to setup a temporary tent in the airport, in case there is a queue in the arrivals and also when they will come out the terminal a tent and tables will be setup for the purpose of assembling and gathering before being taken to their accommodation.

3.185 In terms of security, currently the Ministry works around the airport fencing, to see which areas have been breached.
With the support of the Ministry of Infrastructure and Development (MID), the road at the south of the fence will enable the Ministry to do regular patrols.

The Ministry will also do some improvements, in terms of fixing potholes around domestic and international airport.

The Ministry made mentioned that at the front of the garden the fence would be raised so that it will be secure.
Currently, the Ministry is tendering the improvements of the toilets in the old international airport, with funding sought from the development budget.

3.186 Reconfiguration of International and Domestic arrival - The committee is keen to know when the reconfigurations of the International and Domestic airport will be completed.

3.187 The Ministry stated that the international departure has been used and the reconfiguration has been completed.
The cause of the delay on the use is just the work on the running the cabling for the computer network.

There are some arrangement works made with the Solomon Airlines to move into the terminal by the end of May.

Public Accounts Committee Report: May 2023 3.188 Undersea Cable - The committee noted that the undersea cable was not working recently causing network downtime to Western province and other parts of the country.
The Committee is interested in an update from the Ministry on status and steps taken to prevent this happening again.

3.189 The Ministry responded, that the fibre cable itself is very sensitive to tampering and when a fishing vessel was netting in shallow waters it is likely their net dragged the fibre cable causing the disconnection.

To prevent this from happening again the Ministry stated that the Cabinet has recently approved drafting of a Cable Protection Bill.
Currently, the Ministry is working on the policy to form part of the legislation.

The aim of the legislation is to avoid fishing, deep-sea mining, exploration, and any activity within a protected area of at least 500 metres corridor around the undersea cable.
The Ministry also stated that once the legislation is enacted, it would be properly demarcated on the maps and supplied to the relevant stakeholders, such as Fishing Companies, Ministry of Fisheries, Ministry of Mines and Energy and any other stakeholders who are engaged inundersea activities.
23 Ministry of Fisheries and Marine Resources Variation in appropriation Recurrent Advance Warrants Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $2,278,775 Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates 202-435-0000- 22105 202-001-0000- 22105 202-435-0000- 22109 202-001-0000- 22109 202-435-0000- 22205 202-434-0000- 22401 202-001-0000- 22404 Consultancy Fees 220,000 226,000 446,000 Consultancy Fees 230,000 12,000 242,000 Printing, Stationery & Photocopying Printing, Stationery & Photocopying Nil 97,650 97,650 9,236 96,700 105,936 Office Stationery 40,000 17,381 57,381 Conferences, Seminars and Workshop 200,000 200,000 400,000 Training - Other 10,000 49,669 59,669 Public Accounts Committee Report: May 2023 202-432-0000- 23002 202-001-0000- 23013 202-432-0000- 23014 Total Capex - Non Residential Buildings Capex - Computer Software and Hardware Capex - Specialised Equipment 1,000,000 1,178,775 2)78,775 200,000 100,600 300,600 Nil 300,000 300,000 1,909,236 2,278,775 4,188,011 Explanatory Note: Budget Support funded by the New Zealand Government through the Ministry of Foreign Affairs and Trade (MFAT) towards Mekem Strong Solomon Islands Fisheries (MSSIF) Project.
Additional Supplementary Expenditure - Development Expenditure Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $6,000,000 Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates 102-001-0013- 25009 Subventions and Grant Total 240,000 240,000 6,000,000 6,240,000 6,000,000 6,240,000· Explanatory Note: This amount provides additional funding towards community seaweed farming.
Appropriateness of expenditure The Minister of Finance approved the Advanced Warrant in February 2023.

Issues of Concern Matter raised during the public inquiry include the following: 3.190 The Committee strongly urged the ministry to maintain their budget despite the government's move for re-prioritisation.

3.191 Revenue Collection - The Committee noted that one of the sources of revenue is non tax of which Ministry of Fisheries and Marine Resources is responsible for.
3.192 The COVID19 situation has affected the revenue collection with revenue falling below $300,000, which mainly comes from offshore fishing, however, the Ministry is confident Public Accounts Committee Report: May 2023 to generate revenue with the measures in place during this recovery period.

One of the main sources of revenue is through access fees from fishing boats.
3.193 The Ministry also stated that they are looking at other areas that could have value added in which one area is aquaculture or seaweed farming.

3.194 Household income from seaweed farming - The Committee is interested to know how much of SBD 23,810,000 revenue generated from seaweed farming is derived from households who were involved in this seaweed farming.

3.195 The Ministry informed the Committee that what the households receive depends on the size of their farms.
There are farmers who have reached commercial level that produce 1 tonne per month unlike others have small-scale farms.

For example, in Wagina, around twenty farmers received $20,000 to $30,000 per month.

Buying agents are buying seaweed for $6.00-$7.00 per kilogram.

The only challenge is the support for fanners with farming materials, hence the request for additional supplementary expenditure of $6,000,000.
3.196 Seaweed Farming process - The Committee is interested to know the costs that comes with the processes involved from farming to export.

3.197 The Ministry informed the Committee that the seaweed farming process involves one month farming or planting and then after a month, the seaweeds are dried and then sold to buying agents who are based at the farming sites, hence farmers do not incur logistics expenses.
The buying agents are responsible for transferring the purchased seaweeds to Honiara to and then sell them to the main buyers for packing and export.

3.198 The Committee were excited about this initiative and its ability to provide money directly to households.

The Committee wondered how much awareness has been undertaken and to increase this and budget allocated in the future, The Ministry should also take necessary steps to ensure this budget is not reprioritised.
Recommenda tion The Committee noted the need to increase the fisheries revenue contribution, which was historically a significant contributor to Government Revenue.

The Committee recommended that the relevant Minister also be present at future Parties to the Nauru Agreement (PNA) negotiations to ensure we remain on track.

3.199 The Ministry advised that the Minister will be informed on PAC recommendation for high level representation at PNA meetings.
Public Accounts Committee Report: May 2023 24 Ministry of Public Service Variation in Appropriation Recurrent Advanced Warrant Estimates of the amount further required in the year ending 31 December 2023for the services of this head: $687,502 Subhead/Item Description Advertising Consultancy Fees Printing, Stationery & Photocopying 201-001-0000- 22101 201-001-0000- 22105 101-001-0000- 22109 201-001-0000- 22205 201-001-0000- Conferences, Seminars 22401 201-001-0000- 22404 201-001-0000- 22508 Office Stationery Training - Other and Workshop Original Estimates Supplementary Estimates Revised Estimates Nil Nil 14,265 14,265 341,365 341,365 51,230 16,030 67,260 Nil Nil Nil 31,700 31,700 54,709 54,709 19,000 19,000 Nil Nil 47,000 47,000 201-001-0000- 22509 Public Servants - Local Fares Public Servants - Local Accommodation 201-001-0000- Realised Foreign 22812 Exchange Gain/Loss 201-001-0000- Capex - Specialised 23014 Total 738,732 through the Explanatory Note: Budget Support Department of Foreign Affairs and Trade (DFAT) for ongoing reform programs and public service transformation strategy.
687,502 funded by the Australian Government Equipment 75,000 85,185 85,185 75,000 51,230 3,248 3,248 Nil Nil Appropriateness of expenditure The Minister of Finance approved the advanced warrant in February 2023.

Issues The Ministry were invited to provide a written submission.

Public Accounts Committee Report: May 2023 25.


Ministry of Justice and Legal Affairs Variation in Appropriation Contingency Warrant Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $1,535,400.
Subhead/Item Description 101-472-0000-22105 Total Consultancy Fees Original Estimates Nil Nil Supplementary Estimates 1,535,400 1,535,400 Revised Estimates 1,535,400 1,535,400 Explanatory Note: This amount provides additional funds to cater for payments to special prosecutor remuneration package.

Appropriateness of expenditure The Minister of Finance signed the contingency warrant in March 2023 having obtained Cabinet approval.
Issues 3.200 The Committee noted the Ministry's request and queried what the remit of the special prosecutor is?

3.201 The Ministry updated the Committee that the special prosecutor is being engaged to assist with ongoing investigations into the recent civil unrest.

Currently there are 57 files relating to the civil unrest of Nov 2021.

176 defendants and 51 defendants' have been sentenced, 15 were dismissed and remaining are still pending.
This Contingent Warrant is for a special prosecutor to pay for remuneration costs.

The Ministry is looking to engage a high-profile litigant most likely from Fiji or PNG.

3.202 The Ministry will likely be absorbing some of the later costs of this engagement and to work on closer engagement with PNG in the future.
Public Accounts Committee Report: May 2023 26 Ministry of Home Affairs Variation in appropriation Development Expenditure Estimatesof the amount further required in the year ending 31December2023for the services of this head: $3,300,000 Subhead/Item Description _, 102-001-0091-25027Sports Grant Total Original Estimates 8,500,000 8,500,000 Supplementary Estimates 3,300,000 3,300,000 Revised Estimates 11,800,000 11,800,000 Explanatory Note: This amount provides additional funding to cater for hosting of the Solomon Games 2023organised mainly to identify talents in preparation for the 2023Pacific Games later this year.'
Issues of Concern Matters raised during the public inquiry include the following: 3.203Sports Grant - The committee queried how these funds would be utilised.

3.204The Ministry stated that the additional supplementary expenditure is to meet the cost of the Solomon Games by ensuring that team Solomon has the best representatives of athletes from all the provinces.

The Solomon Games were schedule for 2022however; it was delayed to 2023due to $1.66million from the 2022appropriation budget not being paid.
Moreover taking funds from the 2023financial year just to support the event will have negative effect on the ability of the Ministry and National Sport Council (NSC)to build its capacity to deliver the legislative mandate which is to develop sport and recreational across the entire country.

Inaddition, the Prime Minister's officehas set the target for team Solomon to win 40 gold medals.
The additional sum was requested just to provide for the cost of transport and accommodation for the athletes to attend the award ceremony as well.
3.205Identify Talents - the Committee is disappointed with the description of the funding that is to identify talents through the hosting of the Solomongames 2023.With this kind ofbudget, identifying of talents should have been done four years ago to get the athletes prepared which by now they should already be in training, enhancing their quality and talents to exhale during the South PacificGames to achieve the target of wining 40 goal medals.
Public Accounts Committee Report: May 2023 3.206 The Ministry responded that until they had the funding to host the Games, they did not have the political will to host these events.

National Sports Council (NSC) needs to make arrangements for tournaments that can be used to select high quality candidates.

3.207 NSC further clarified that there are always hidden talent out there and through the games they have identified and sent these athletes overseas for training.
Currently NSC -, is pushing for improvement of governance within the national federations and one requirement is for each federation to operate in at least five provinces which is not the case therefore.

3.208 Additionally, the national recreation policy requires the Ministry to spread recreation and sport throughout the provinces to contribute to social cohesion, better health, and better productivity and so on.
3.209 A total of $11.8 million investment to identify talent -The committee want to know from the Solomon Games how many provincial participants where identified, selected and have already left for training in Australia or China.

3.210 National Sport Council (NSC) clarified that the budget of $8.5 million is used to resuscitate the national council and a portion of it is used for the Solomon Games and also for its operational purpose.
3.211 In relation to the number of athletes there were thousands who came to compete in the game and due to sport autonomy, the selection process remains with the national federation to handle.

The national athletics have included some athletics from the provincial games to their squad, also 30 athletes from the netball will be brought back to complete with the national squad before the Games.
3.212 The NSC also do not have the actual figure of the selected athletes during the Solomon Games but this will be provided through written submission.

3.213 Fields not in used - The committee is concern that the field are not yet being used.

3.214 NSC responded saying, in terms of the planning process the community facilities will be upgraded consecutively before [une to allow people to get access and used the fields.
At the moment the training tract at the east end of the sport facility is being used by football, public and Solomon athletics.

The Solomon Islands Football Federation (SIFF) academy will have two fields available; the DC Park has two or may be three fields for training which will total up to 12 fields during the games.

3.215 Strategy and tactical approach - The committee wants to know the strategy and tactical approach either to concentrate on individual game or team game.
3.216 NSC responded stating that they are focusing on teams as well as individuals.

However, the return on inveshnent is greater on individual sports than team sports.

For instance, Public Accounts Committee Report: May 2023 football is expected to do quite well so that would be a good investment and since SIFF gets funding from FIFA that is a relief in preparing for that particular team.
3.217 Smaller team sports, as beach volleyball is fairly worth investing in, since Vanuatu is the common wealth champion.

China's funding is very important because it focuses on seven individual sports and they will be taking 73 athletes to be trained in China.

In addition, certain coaches will also be going through that and hope knowledge learnt will be applied during the Pacific Games as well as in the future.
Therefore, in principle, the ministry supports both team and individual sports but with the recognition that return of investment is greater on the individual sports.

3.218 What event was planned - The committee wants to know is there an event that was to be happening but did not occur.

Therefore, if that event did not happen do you still have plan for it to happen.
The Ministry clarified that the Solomon Games is that event that was referred to which should have happen last year but due to lack of funding it was postponed and has occurred on March this year.

3.219 National Sport Council (NSC) progress - The committee wants to know how far NSC has come in terms of its governance and capacity to manage and administer anything especially in taking up the role to manage and maintain the infrastructure and facilities.
The committee understands that this is a huge task and it needs well-trained staff.

3.220 NSC responded stating that its governance is improving.

For the last year, they have established and passed 18-20 policies.

Furthermore, staff have increased from three to 12.

Also for this year's ministerial budget, there is a provision for 12 post to be established and filled.

The current challenge faced by NSC this year is the small office space, which needs to be expanded.
3.221 Other things include reviewing the NSC act and the Pacific Games Act, which state that non-financial asset, will be distributed to the NSC and NOCS!.

Since NOCSI does not have the mandate and capacity, NSC is the right and better-prepared candidate to manage PG facilities.

In some cases, there is opportunity to collaborate with SIFF in management of some facilities.
3.222 A co-management MOD has been signed with NSC to cater for the act that states any facilities which is built, donated, constructed by the government or other entity being a donor is the NSC property to look after and mange.

It is complicatednow because NHA with its budget and its approach owns the facilities.

3.223However, once it is handed over the NSC acts will come into effect.
3.224Sincethese facilitieshave not existed before, NSCis working hard to train people hired, as well as getting equipment's to do that.

Moreover, NSC is committed to pulling resources from other countries to up-skill people in this county.

Through donor, funding Public Accounts Committee Report: May 2023 NSC was able to appoint director of the facilities who have experience from Sydney in multiple facilities.

China also offers two people to stay in the country for two years.
NSC have worked with HCC and a New Zealand expert to deliver, training 16 people from NHA HCC in the basics of how to manage grass.

A follow up course will be held in July.

3.225 Stage of the Legislative Amendment - The committee understands that some facilities are developed in some schools and institutions.

In order for the facilities to be retained by those institutions there has to be some legislative amendment in place.

The question is where are we now?


3.226 The National Sport Council will respond in writing to the committee before Wednesday 18 May because they need to confirm with their colleague from NHA since they are the owner of the facilities.

There are some MOUs being signed whichNSC has not been involve with which state that the land will remain with the owner and the facilities will remain with NHA/NSC in the future.
3.227 Warm temperature inside friendship hall building - The committee wants to know why there is poor ventilation or cooling system install in the friendship hall facility.

3.228 NSC responded that the games organizing committee with NHA is looking at installing big fans.

Since electricity in Solomon Islands is expensive to pay, air conditioning is not an option.
32 Ministry of Environment, Climate Change, Disaster Management and Meteorology Variation in appropriation Contingency Warrants Estimates of the amount further required in the year ending 31 December 2023 for the services of this head: $2,610,000 Subhead/Item Description 101-571-0000- 22212 Disaster Preparedness & Relief Original Estimates Supplementary Estimates Revised Estimates 1,965,102 2,610,000 4,575,102 Total 1,965,102 2,610,000 4,575,102 Public Accounts Committee Report: May 2023 Explanatory Note: This amount provides additional funds to cater for SIG emergency support to the Government of Vanuatu and for Temotu Province Outer Islands that were affected by Tropical Cyclones Judy and Kevin.
Appropriateness of expenditure The Minister of Finance signed the contingency warrant on 5 April 2023 having obtained Cabinet approval.

Issues of Concern Matters of concern raised by the Committee are as follows: 3.329 The Committee sought an update on the funds raised through a contingency warrant for the disaster relief for cyclone Kevin and cyclone Judy.
3.330 The Ministry responded that the tropical cyclone Judy in Feb 2 and tropical cyclone Kevin 10th April assessment team have already been deployed and assessment needs already completed.

These funds used now are to replenish what has already been spent this year to ensure Ministry has sufficient funding available for the remainder of the year.
3.331 The Ministry also pointed out that there should be a National Disaster Council fund to ensure funds are always available otherwise the Ministry can only responds in line with MoFT processes which can delay response times.

The Disaster management plan has sector committees established with lead by relevant Ministries.

For disasters, we use this arrangement, which through development partners can provide immediate response.
This $2.6 million Contingency Warrant is for the relief, which has been completed.

Sometimes isolation and weather can make response challenging however multisector hazard response and sharing of resources especially with donor assistance means we can respond in a timely manner.

3.332 The Committee queried what the Ministry's plans were to support upcoming Games.

3.333 The Ministry responded that there are four technical divisions to support the PG2023.
The Met service will have direct weather updates for day to day running of games.

Sky eye satellite to help with data.

Also on greening of the games, there is a proposal for the banning of single use plastics and looking for replacement like re-useable shopping bags made from coconut.

Also likely to ban small water bottles instead encouraging use of refillable bottles.

This initiative will likely be supported by some regional organisations.
On water, sports there will be wild life monitoring like for crocodile to ensure the safety of athletes.

Tenaru School that is hosting athletes will be supported to invest in greening initiatives like moving to solar and maintenance of school surroundings.

Public Accounts Committee Report: May 2023 3.334 The Committee was also interested in progress with cleaning up Honiara Rivers and surrounding community.
3.335 The Ministry pointed out that rivers and streams act is under hydrology under the Ministry of Mines.

However, Ministry has shared responsibility with Mines, MID and HCC.

In the past MECCDM engaged in community awareness to reduce river pollution and placed boons in Matiniko River.

There have been proposals to dredge Mataniko but no funds available for MID to clean up.

3.336 The Ministry has conservation grants available for management plans and provision of rangers but with limited budget.
Conservation awareness is still ongoing with some NGO's also supporting the Ministry in this area.
END OF REPORT Public Accounts Committee Report: May 2023 Appendices Committee Functions The Committee under Standing Order 69 is established; an Order made pursuant to the Conetitutioni and has the functions, together with the necessary powers to discharge its mandate as such, (a) examine the accounts prescribed by Section 77 of the Public FinancialManagement Act 2013,together with the report of the Auditor General thereon, and to report the results of such examinationto Parliament; (b) establish the causes of any excesses over authorised expenditure and to make recommendations to Parliament on any appropriate measures to cater for such excessesof expenditure; (c) examine such other accounts laid before Parliament as the Committee may think fit, the results of such thereon and to report together with any auditor's report examinationto Parliament; (d) summon any public officerto give information on any explanation,or to produce any records or documents which the Committee may require in the performance of its duties; (e) considerin detail the Draft Estimatesprepared by the Government in support of the Annual Appropriation Bill; (f) summon and examine the Accounting Officersand Technicalstaff of Ministries and Departments and require the production of background information and explanation in relation to Draft Estimates; (g) report to Parliament in such a way that the report may inform Members prior to the Parliamentary debate thereon of the background to the Draft Estimatesdraw attention to those matters which the Committee feels should be the subject for such Parliamentary debate; and (h) make such recommendations as the Committee sees fit and subsequently receive comments and reports on such recommendationsfrom the Government.
5 Section 62, Constitutionof SolomonIslands 1978.

Public Accounts Committee Report: May 2023 61 Appendix 3: Minutes of Public Hearings NATIONAL PARLIAMENT OF SOLOMON ISLANDS P.O.

Box G19, Honiara.

Tel: 28520/24164.

Fax: 24272 PUBLIC ACCOUNTS COMMITTEE Minutes of Proceedings Committee 2023) Day 1/2023 Wednesday Inquiry into the 2023 Supplementary Appropriation Bill 2023 (No.3 of 10th May, PTC Building, 10:06 AM 1.

2.

3.

4.

Members Present Hon.

Douglas Ete, MP- Chairman Hon.

Matthew Wale, MP Hon.


John Dean Kuku, MP Hon.

Rick Houenipwela, MP Hon.

John Maneniaru, MP Hon.

Claudius Tei'ifi, MP Hon.

Commins Mewa, MP Hon.

Alfred Efona, MP Apologies Hon.

Silas Vaqara Tausinga, MP Hon.

Lilly Maefai, MP Hon.


Ethel Vokia, MP Secretary Mr. David Dennis, Auditor General Secretariat Mr. Heston Renee, Committee clerk Mr. Whitmon Tabiru, Committee Secretary Ms. Salome Pilumate, Committee Secretary Ms. Sherilyn Ragoso, Hansard Officer Mr. Greg Kinimete, Hansard Officer Ms. Hazel Fafale, Hansard Officer Mr. Lawrence Scott, Media Officer Public Accounts Committee Report: May 2023 108 Prayer 5.

The MP for Temotu/Nende, Hon.

Commins Mewa said the opening prayer.

Welcome/ Opening remarks 6.


The Chairman of the PAC welcomes members of the committee, witnesses, committee secretariat and supporting staff and then said his opening remarks.

The Chair informs the witnesses of the Parliamentary privileges.

7.

Inquiry into the 2023 Supplementary Appropriation Bil12023 (No.3 of 2023) The Hearing proper commenced and the following witnesses from the Central Bank of Solomon Islands (CBSI)were admitted.

Hearing 1Witnesses i. Mr. Raynold Moveni,Deputy Governor ii.
Mr. MichaelKikiolo,Management Advisor Policy The witnesses made their presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearing suspends at 11:23 am The Hearing proper Ministry of Finance and Treasury were admitted: resumed at 11:34 am and the following witnesses from the Hearing 2 Witnesses i. Mr. McKinnieDentana, Permanent Secretary ii.

Mr. Coswell,Deputy SecretaryFiscal iii.


Mr. Paula Uluinaceva,Accountant General (AG) iv.

Mrs. MarcellinaLoe,Director Budget v. Ms. Primula Kingmele,Director EnonomicReformUnit vi.

Mr. RobertMeyenn,Director Debt Management Unit vii.

Mr. SelwynTakana, DSE viii.

Mr. Douglas Sade,Deputy Accountant General ix.

Mr. KevisKimasaru, Chief PolicyAnalyst x. Ms. Bridget Urioiaru, SeniorPolicyAnalyst Public Accounts Committee Report: May 2023 108 The witnesses made their presentations before the Committee.
The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearing suspends for lunch at 12:57 pm.

The Hearing proper resumed at 2:43 pm and the following witnesses from the Office of the Prime Minister and Cabinet were admitted: Hearing 3 Witnesses i. Dr. Jimmie Rodgers, Secretaryto Prime Minister (SPM) ii.

Mr. Leonard Ofanu'u, DSPMC iii.


Mr. MalcolmFoufaka, FinancialController (Ag) The witnesses made their opening presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearing suspends at 3:18 pm The Hearing proper Solomon Islands Electoral Commission (SIEC)were admitted: resumed at 3:21 pm and the following witnesses from the Hearing 4 Witnesses 1.

Mr. Jasper Anisi, Chief ElectoralOfficer ii.


Mr. Reuben Rongomea,ChiefAccountant Officer iii.

Mr. George Mali, LegalOfficer The witnesses made their opening presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.


Hearing suspends at 3:39 pm Public Accounts CommitteeReport: May 2023 108 The Hearing proper resumed at 3:42 pm and the following witnesses Ministry of Education and Human Resources Development were admitted: from the Hearing 5 Witnesses i. Dr. Franco Rodie, Permanent Secretary 11.

Mrs. Linda Wate, DS T & L iii.

Mrs. Merrylyn Kodoleke, Director Finance iv.

Mrs. Constance Nasi, CEO-SITESA v. Mr. Martin Kutai, Director Teaching Services Vi.
Mr. Clement Tito, Manager Assets The witnesses made their opening presentation before the Committee .

.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Adjournment 8.

No closing prayer was said.

The hearing adjourned at 4:35 pm Day 2/2023 Thursday 11thMay, PTC Dining, 09:56 AM 1.

Members Present Hon.

Douglas Ete, MP- Chairman Hon.

Matthew Wale, MP Hon.

John Dean Kuku, MP Hon.

Rick Houenipwela, MP Hon.


John Maneniaru, MP Hon.

Claudius Tei'if, MP Hon.

Commins Mewa, MP 2.

Apologies Hon.

Ethel Vokia, MP Hon.

Silas Vaqara Tausinga, MP Hon.

Alfred Efona, MP Hon.

Lilly Maefai, MP Public Accounts Committee Report: May 2023 108 3.

Secretary Mr. David Dennis, Auditor General 4.


Secretariat Mr. Heston Rence, Committee clerk Ms. Salome Pilumate, Committee Secretary Ms. Monica Sekonga, Committee Admin Ms. Cordney Wale, Committee Secretary Ms. Sherilyn Ragoso, Hansard Officer Ms. Theresa Nori, Hansard Officer Mrs. Esther Turangaluvu, Hansard Officer Mr. Lawrence Scott, Media Officer 5.

Prayer The MP for Small Malaita, Hon.Rick Houenipwela said the opening prayer.

6.
6.

Welcome/ Opening remarks The Chairman of the PAC welcomes members of the committee, witnesses, committee secretariat and supporting staff and then said his opening remarks.

The Chair informs the witnesses of the Parliamentary privileges.

7.

Inquiry into the 2023 Supplementary Appropriation Bill 2023 (No.3 of 2023) The Hearing proper commenced and the following witnesses from the Ministry of Infrastructure Development were admitted.

Hearing 6 Witnesses i. Mr. Allan Lilia,DST 11.


Mr. MikeQaqara, Director TIMSD iii.

Mr. Allan Rangi, HRM The witnesses made their presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.


Hearing suspends at 10:02 am MID rescheduled to Friday 12/0512023 Public Accounts Committee Report:May 2023 108 The Hearing proper resumed at am and the following witnesses from the Ministry of Commerce, Industry, Labour and Immigration (MCILI) were admitted: Hearing 7 Witnesses i. ii.

iii.

iv.
iii.

iv.

Mr. Riley Mesepitu, PS Mr. Eric George,DST Mr. Owen Rove, CIO (BIC) Mr. Patterson Siliotu, General Manager, CEMA The witnesses made their presentations before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.


Hearing suspends for lunch at 11:48 am Resume at 2:00pm The Hearing proper resumed at 2:09pm and the following witnesses from the Ministry of Fisheries and Marine Resources (MFMR) were admitted: Hearing 8 Witnesses Mr. Patteson Lusi, DSC/PS(Supervising) Mrs. R. Sulu, PC/MSSIF Mrs. RonellePanda, DSPP Mrs. Ivory Akao, DDI Mr. Alick Misibini, CPA/ BRAG Mrs. Mary Vuto, CPA, MSSIF i. ii.

iii.

iv.

v. vi.

vii.

Mr. James Teri, DDA viii.


Mrs. Caroline Meningi, FC Supervising The witnesses made their opening presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.


Hearings suspends at 2:55pm The Hearing proper resumed at 3:09pm and the following witnesses from the Ministry of Police, National Security and Correctional Services were admitted: Public Accounts Committee Report: May 2023 108 Hearing 9 Witnesses 1. ii.

iii.

iv.

v. vi.
iii.

iv.

v. vi.

Ms. Karen Galokale, Permanent Secretary Mr. Mostyn Mangau, Commissioner RSIPF Mr. Mactus Forau, Commissioner CSSI Ms. Julia Twumasi, Deputy Secretary Corporate Mrs. Martha Alabae, Director Finance - CSSI Mrs. Annie Pulekera, PA- RSIPF The witnesses made their opening presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.


Hearing suspend at 3:43 pm The Hearing proper resumed at 3:46pm and the following witnesses from the Ministry of Home Affairs (MHA) were admitted: Hearing 10 Witnesses 1.

11.

111.

IV.

v. Mr. Jeffery Sade Deve, PS Mr. Freddie Iroriau.

0, DSC Ms. Alison Burchell, Director/CEO Mrs. Iverlyn Duidi, FC (Ag) Mr. Selison Faisi, Director Sports The witnesses made their opening presentation before the Committee.
The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

8.

Adjournment No closing prayer was said.

The hearing adjourned at 4:40 pm Public Accounts Committee Report: May 2023 108 Day 3/2023 Friday 12thMay, PTC Dining, 10:10 AM 1.

Members Present Hon.

Douglas Ete, MP- Chairman Hon.

Matthew Wale, MP Hon.

John Dean Kuku, MP Hon.

Rick Houenipwela, MP Hon.

John Maneniaru, MP Hon.

Claudius Tei'if, MP Hon.

Commins Mewa, MP 2.


Apologies Hon.

Ethel Volda, MP Hon.

Silas Vaqara Tausinga, MP Hon.

Alfred Efona, MP Hon.

Lilly Maefai, MP 3.

Secretary Mr. David Dennis, Auditor General 4.

Secretariat Mr. Heston Renee, Committee clerk Ms. Salome Pilumate, Committee Secretary Ms. Cordney Wale, Committee Secretary Mr. Richard Ngatulu, Hansard Officer Mr. Greg Kinimete, Hansard Officer Mr. Lawrence Scott, Media Officer 5.

Prayer The MP for West Are' Are, Hon.


John Maneniaru said the opening prayer.

6.

Welcome/ Opening remarks The Chairman of the PAC welcomes members of the committee, witnesses, committee secretariat and supporting staff and then said his opening remarks.

The Chair informs the witnesses of the Parliamentary privileges.

7.
7.

Inquiry into the 2023 Supplementary Appropriation Bill 2023 (No.3 of 2023) The Hearing proper commenced and the following witnesses from the Ministry of Agriculture and Livestock Development (MALD) were admitted.

Public Accounts Committee Report: May 2023 108 Hearing 11 Witnesses Mrs. Elda L Wate,Deputy SecretaryCorporate Mr. RiscksonWate,DirectorLivestock i. ii.

iii.

Mr. Andrew Melanolu,DirectorExtension iv.

Mr. Paul Gregory,FC The witnesses made their presentation before the Committee.
TIle Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearing suspends at 11:08 am The Hearing proper resumed at 11:17 am and the following witnesses from the Ministry of Environment, Climate Change, Disaster Management & Meteorology (MECCDMM) were admitted: Hearing 12 Witnesses Mr. Karl Kuper, DSC Mr. George,Deputy DirectorNDMO i. ii.

iii.

Mr. Peter Nelson, FC The witnesses made their presentations before the Committee.
The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearing suspends for lunch at 11:45 am The Hearing proper Ministry of Justice and Legal Affairs (MJLA)were admitted: resumed at 11:50am and the following witnesses from the Hearing 13 Witnesses 1. ii.

Dr. Paul Mae, PS Mrs.Joy Angi, DSC The witnesses made their opening presentation before the Committee.
Public AccountsCommitteeReport:May 2023 108 The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearings suspends for lunch at 11:59am Resume at 1:30pm The Hearing proper resumed at 1:36pm and the following witnesses from the Ministry of Communication and Aviation (MCA) were admitted: Hearing 14 Witnesses Mr. MosesVirivolorno,PS Mr. Reuben Ziru, Chief CybersecurityOfficers i. ii.

iii.
iii.

Mr. Chris S. Koako,FC The witnesses made their opening presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearing suspend at 2:04 pm The Hearing proper resumed at 2:13pm and the following witnesses from the Ministry of Health and Medical Services (MHMS) were admitted: Hearing 15 Witnesses i. ii.

iii.
iii.

Mrs. Pauline Mcneil,PS Mr. GeorgeMalefoasi,CEO/NRH Mr. Ivan Ghemu, DPP The witnesses made their opening presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

8.

Adjournment No closing prayer was said.

The hearing adjourned at 3:30 pm PublicAccountsCommitteeReport:May 2023 108 List of Submissions 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.
MECCDMM - PAC 2023 SAB 2023 Generic Template MoFT - PAC 2023 SAB 2023 Generic Template - AG Treasury MALD - PAC 2023 SAB 2023 Generic Template MEHRD - PAC Generic Template 2023SAB2023 OPMC - PAC SAB Generic Template 2023SAB2023 MHMS - PAC SAB Generic Template 2023SAB2023 MoFT - PAC GT 2023 SAB 2023 MID - PAC SAB Generic Template 2023 SAB 2023 MPNSCS -PAC SAB Generic Template 2023SAB2023 MCILl - PAC SAB Generic Template 2023SAB2023-1 MFMR- PAC SAB Generic Template MFMR submission 11.05.23 final MHA - PAC SAB Generic Template 2023SAB2023 MCA - PAC SAB Generic Template 2023SAB2023 MCT - PAC SAB Generic Template 2022SAB2023 MJLA - PAC SAB Generic Template 2022SAB2023 MPS - PAC SAB Generic Template 2023SAB2023 - Revised Copy List of Other Submission 1.
2.

3.

4.

5.

6.

7.

8.

9.

CBSI - Talking Points MEHRD - Presentation to PAC 2023 SAB 2023 MID - Recurrent Expenditure Copy of TIMSD Pressure- Recurrent 2023 MFMR - PAC Brief on 2023 SAB 2023 11.05.23 Final Michael Kikiolo's Email MHMS - PS PAC 2023 SAB 2023 Brief MoFT - MoFT 2023 SAB 2023 - Talking Points MID - PS MID Additional Brief MCT - PAC 2023 SAB 2023 Written Submission Public Accounts Committee Report: May 2023 108 10.

11.

12.

13.

14.

15.


MCT - MFAT/MCT Grant Funding Agreement MID - Approved National Transport Fund Program - Paul Ne'e MID - NTF Work Plan 2023 MID - TIMSD Monthly Summary Report - March 2023 MALD - Commercial Farm PROGRESSIVEREPORT as of 28th February 2023 MOFT - 2023Development Budget Execution Strategy Summary Public Accounts Committee Report: May 2023