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National Parliament of Solomon Islands Public Accounts Committee Committee Report Report on the 2022 Supplementary Appropriation Bill 2023 National Parliament Office Public Accounts Committee Report: June 2023 ii Public Accounts Corrunittee Report: [une 2023 ii Chair's Foreword REPORT OF THE PUBLIC ACCOUNTS COMMITTEE Mr Speaker, [g] of the National Parliament of Solomon e Sir, to present the Report of the Public Accounts upplementary Appropriation Bill 2023 (No.2 of 2023) 19 June 2023 Public Accounts Committee Report: June 2023 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 Mae£ai, MP Hon.

John Maneniaru, MP Hon.

Alfred E£ona, MP Hon.

Ethel Leney, MP Hon.

Commins Mewa, MP Hon.

Silas V. Tausinga, MP Hon.
Claudius Tei'ifi, MP Secretary: Mr David Dennis, Auditor General Secretariat: Mr Heston Rence, Committee Clerk Contact details Public Accounts Committee National Parliament of Solomon Islands POBoxG19 Honiara Telephone: (677) 28520/24161 Email: ComSec@parliament.gov.sb URL: www.parliament.gov.sb Public Accounts Committee Report: June 2023 iii Table of Contents Committee Membership Chair's Foreword Executive Summary Chapter 1: Introduction Chapter 2 - Background Information Chapter 3 - Issues of Concern 01 Solomon Islands Electoral Commission 04 Office of the Auditor General 06 Ministry of Finance and Treasury 08 Office of the Governor General.. 09 Ministry of Health and Medical Service 12 National Parliament of Solomon Islands (NPSI) 14 Office of the Prime Minister and Cabinet 20.
Ministry of Culture and Tourism 21.
Ministry of Commerce, Industry, Labour and Immigration 23 Ministry of Fisheries and Marine Resources 24 Ministry of Public Service Public Accounts Committee Report: June 2023 i ii v 1 3 6 6 7 8 13 14 18 20 23 24 27 31 iv 26 Ministry of Justice and Legal Affairs 29 National Judiciary Appendices 40 Committee Functions Appendix 3: Minutes of Public Hearings List of Documents Tabled during hearing 34 35 40 41 50 Public Accounts Committee Report:[une 2023 v Executive Summary According to the Solomon Islands Government 2022 Financial Policy Objectives and Strategies, the Real Gross Domestic Product was expected to contract by 4.5 percent in 2022 followinga slowdown in key sectorsand negative impacts of the November riots and COVID- 19 community transmission.
The Government had set three key priority areas.

Firstly, the Covid-19response to manage and control the transmission in Honiara and other provinces.

Secondly, the reconstruction of the buildings destroyed during the 2021 November riots including support to affected businesses and lastly, the implementation of new economic initiatives to support economicrecovery.
The economicdown tum poseda risk to the economyand with a $1~184.1billionbudget deficit, the executive should be vigilant with its debt and cash flow management strategy, and ensuring compliance with the PFM Act.

Further, the funding gaps imply that unfunded initiatives will not be implemented and where reprioritisation takes place centrally,impacts to public serviceswill naturally followwith possible unplanned consequences.
The Public Accounts Committee (lithe Committee") completed its examination of the 2022 Supplementary Appropriation Bill 2023 (No.2 of 2023)from the 22nd to the 25th May and 40 witnesses appeared before the Committee.

The Bill seeks to appropriate an additional $74,669,768from the Consolidated Fund for the service of the financial year ending 31 December 2022.

It seeks to regularize Contingency Warrants of $12,811,002Advance Warrants of $61,858,766for the services in the year ended 31st December2022.
The Committee makes five (5)recommendations to the SolomonIslands Government: Recommendation 1: Ministry of Health and Medical Services The Committee recommends that the Ministry increase the Solomon Islands budget component on family planning training and access to health services for teenagers especially in the school system.
Recommendation 2: Ministry of Health and Medical Services The Committee recommends that all new donor funded health facilities should be opened only when all operational needs including staff quarters, equipment and medicines are in place at the time the facilities are handed over to the Ministry.
Public Accounts Committee Report:June 2023 vi Recommendation 3: Ministry of Commerce, Industry, Labour and Immigration recommends The Committee Immigration quality of consumer goods and services in Solomon Islands.
the Ministry of Commerce, its policy on management implements or updates that Industry, Labour and and monitoring of the Recommendation 4: Ministry of Public Service The Committee recommends the Ministry of Public Service produce and publish a detailed cost analysis (salaries, emoluments & other entitlements) of the policy to contract all the middle Office Managers such as Financial Controllers, Human Resource Managers and Directors of the Government Ministries.
that Recommendation 5:Ministry of Public Service the Ministry of Public Service abolish the non The Committee recommends that established roles classificationfor level one and two and reassess appropriate remuneration level for these roles.

Public Accounts Committee Report: June 2023 1 Chapter 1: Introduction This Chapter introduces the Inquiry, including the information on the Public Accounts Committee (PAC)and the inquiry process.
Overview 1.1 The National Parliament is the independent law-making arm of government to which the Executive is accountable to.

The Parliament is also 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 ("the 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 2022 Supplementary Appropriation Bill2023 was received by the Speaker and certified on Tuesday 25 April 2023.
The Committeebegan its deliberations from 27th April 2023 and 4th May 2023 and held public hearings from 22nd to the 25th May 2023 to examine the Bill that seeks to appropriate an additional $74,669,768 to the service of the year ending 31 December 2022.

1.3 In compliance with the 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 Billthat comprises the Contingency Warrants (CWs),Advance Warrants the Recurrent Expenditures.

1.6 The Permanent Secretaries (PSs),Deputy Secretaries (DSs)and senior officialsof various ministries who came before the Committee provided valuable information.

The Committee also benefited immensely from the Officeof the Auditor General.
The Central Bank of SolomonIslands (CBSI)and the Ministry of Finance and Treasury provided insight and projection of economic performance for 2022.

Public Accounts Committee Report: June 2023 2 Inquiry Process 1.7 In accordance with its mandate under Standing Orders 69 of the National Parliament, the Committee resolved at its meeting on 27th April 2023 to commence the examination of the Bill from 22nd to 25th 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 eight government agencies, including four institutional offices, and received 16 submissions.

A list of submissions is 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: June 2023 3 Chapter 2 - Background Information This chapter outlines the brief background of the 2022Supplementary Appropriation Bill2023 (No.2 of 2023).
2.1 The Bill seeks to appropriate an additional $74,669,768for the service of the year ending 31 December 2022, which includes $12,811,002for Contingency Warrants, $61,858,766for Advance Warrants for the services in the year ended 3IstDecember 2022.
EXPENDITURES CONTIGENCY WARRANTS - RECURRENT ADVANCE WARRANTS - RECURRENT TOTAL APPROPRIATED EXPENDITURES CONTINGENCIES WARRANTS RECURRENT Head Ministry 08 Officeof the Governor General 12 14 National Parliament of Solomon Islands Officeof the Prime Minister and Cabinet 29 National Judiciary AMOUNT ($) $12,811,002 $61,858766 $74,669,768 Amount Purpose 785,002 This amount provide additional funds to replenish travel expenses used by Governor General and his delegation to London, to attend the state funeral of Late Queen Elizabeth2.
2,568,000 This amount provides additional funds to cater for MP's touring.

Clothing and sitting allowance including terminal grant and death benefit for Han.

Titus Fika.

6,500,000 This amount provides additional funds to cater for Government newspaper and SIBC broadcast, the services of this head 2,940,000 This amount provides funds for costs to cater for outstanding court circuits, court of appeal activities and other contractual commitments to continue office mandated obligations.
Total Recurrent Contingency Warrants 12,811,002 Public Accounts Committee Report: June 2023 ADVANCE WARRANTS RECURRENT Head 01 Ministry Office of Commission the Electoral 04 Office of the Auditor General 06 Ministry Treasury of Finance and 09 Ministry of Health and Medical Services 4 Amount 8,282,568 Budget Support Purpose by the Asian funded Development Bank (ADB) to cater for the Western and Choiseul provincial elections and other by and other by-elections elections during the year.
93,948 Budget Support funded by Accountable Cash Grants provided by the Government of Foreign of New Zealand Ministry Affairs & Trade for (MFAT) outstanding operations continuity during COVID-19 for the nonrecurring remote working capability.
to cater of 28,826,541 Budget Support jointly funded by ADB, SIG Domestic Development Bond, Japan Internal Cooperation Agency OICA), DFAT, United Nations Development Programme (UNDP) and World Bank (WB) towards Economic Stimulus Package impact of the to cushion the negative COVID-19, for government cash injection to Solomon Water PG 2023 games.

Funding to assist climate change unit to carry out programs and launching of Roadmap in FEDU.
towards for severe collectively funded by 15,730,922 Budget Support DFAT, World Organisation Health (WHO), UNICEF and United Nation Population FtIDd (UNFPA) to support the to refund Family Planning Training, unused acute grants, (SAM) and infant young malnutrition child feeding (!YCF).

Funding also for scabies Mass drug administration by Murdoch implementation (Fees and Children's Hospital Charges).
Funds for Drugs and Dressings, and management Obstetrics complication training cost and HR surge capacity for National Health Emergency operation centre cost.

Funds for costs relating to Environmental Health capacity COVID-19 Emergency recruitment.
Emergency provided building Institute and for for Public Accounts Committee Report: JlIDe2023 14 Officeof the Prime Minister and Cabinet 20 21 23 Ministry of Culture and Tourism Ministry of Commerce,Industry, Labour and Immigration Ministry of Fisheries and Marine Resources 24 Ministry of Public Service 25 Ministry of Justice and Legal Affairs 5 2,484,000 Funding provided by ADB and World Bank purposely for PM's travel to UNGA and Forum leaders meeting with Indian to fund Kolombangara OM.
Funds Committee Development in (KDAC) implementing outstanding government commitments.

programs Advisory taskforce 557,049 Funded by MFAT purposely to support product development, visitors experience and COVIDsafety within the Ministry 2,000,000 Budget Support funded by World Bank to the cost of additional passport and the official/diplomatic needed by meet booklet ordinary Immigration Division.
for passports 2.870,293 Budget Support funded by MFAT towards Mekem Strong Solomon Islands Fisheries (MSSIF) Project and Bina Regional for Governance (BRAG Arrangement project) in support of the Bina Harbor Tuna Processing.

604,615 Reappropriated Budget Support funded by DFAT to enhance capacity in the Solomon Islands Government within the Ministry ofPublic Service.

408,830 Budget Support funded by PNG for supply of the new DPP office at for outstanding payments furniture for TelekomBuilding.
Total Warrants Recurrent Advance 61,858,766 Public Accounts Committee Report: June 2023 6 Chapter 3 - Issues of Concern 01 Solomon Islands Electoral Commission Advanced Warrant Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates 218-010-0000- 22806 Election & By-Elections 11,714,801 8,282,568 19,997.369 Total 11,714,801 8,282,568 19,997,369 Appropriateness of expenditure On November 3,2022, the Minister granted the advanced warrant approval.
Issues of Concern Matters of concern raised by the Committee include the following: Clarification on the funding for the Advance Warrant (AW) 3.1 The Committee asked the SIEC office if the Asia Development Bank (ADB) had provided funding for this fund.

The Committee further questioned whether this financing was intended for the elections in the Western and Choiseul provinces.

The SIEC office in response stated that this funding was from the Asia Development Bank.
Synchronization of the elections 3.2 The Committee questioned whether the Western and Choiseul elections would not be included in the synchronization of elections.

3.3 The SIEC in response stated that these two provinces will not be included in the synchronization of elections.

Procurement of equipment 3.4 The Committee noted that $2 million of the $4.5 million budgeted for the equipment's purchase went into supplies for the Western and Choiseul elections.
The Committee Public Accounts Committee Report: June 2023 7 therefore queried if the remaining amount was also spent on equipment for other provinces.

3.5 The SIEC office confirmed that this is correct.
04 Office of the Auditor General Advanced Warrant Subhead/Item Description Original Estimates Supplementary Revised Estimates Estimates 202-040-0000- Telephone 22655 and Faxes Total Nil Nil 93,948 93,948 93,948 93,948 Appropriateness of expenditure On October 28, 2022, the Minister granted the advance warrant.

Issues of Concern A written submission was requested from the Office of the Auditor General (OAG).
The budget unit was asked to rectify OAG's explanatory note to show funds received from INTOSAI, not MFAT, as indicated in the draft Bill.

There were no further concerns raised.
Public Accounts Committee Report: June 2023 8 06 Ministry of Finance and Treasury Advance Warrants Subhead/item Description Original Estimates Supplementary Estimates Revised Estimates Actual 2022 218-150-0000- 29004 219-150-0000- 23014 219-150-0000- 22510 219-150-0000- 22509 219-150-0000- 22508 219-150-0000- 22211 219-150-0000- 22105 210-159-0000- 22514 210-159-0000- 22401 210-159-0000- 21301 210-159-0000- 21208 to ESP Support Infrastructure Initiatives Capex- Specialised Equipment Public Servants - Local Other costs Public Servants - Local Other Accommo- dation Public Servants - Local fares Fuel Consultancy Fees Public Servants - Annual Leave Fares Conferences, Seminar and Workshop NPF- Employers Contribution Special Duty Allowance- Public 7,259,534 3,028,540 10,288,074 9,929,288 Nil Nil Nil Nil Nil NIL 12,000 12,000 33,050 624,800 624,800 158,739 344,000 344,000 13,456 13,456 50,280 50,280 250,000 250,000 - - - - 8,250 11,473 19,723 3,670 9,866 38,500 48,366 43,640 2,737 4,445 7,182 8,212 13,335 21,547 NN NAl 2 The items with "NA" ate payroll related codes with no specific actual reflected against the budget item, however total payroll actuals by Head for 2022 is provided in the table below.
Public Accounts Committee Report: June 2023 9 Servants Housing Allowance- Public Servants Salaries - Public Servants SOE Recapitalization 210-159-0000- 21202 210-159-0000- 21102 217-150-0000- 22804 Total 2.

Appropriateness of expenditure 3,650 5,926 9,576 36,498 59,265 95,763 NN NN 5,342,000 24,370,521 29,712,521 14,721,010 12,670,747 28,826,541 41,497,288 24,889,397 From July 26 to December 8, the Minister of Finance approved the Advance warrant.

3.
3.

Patterns in Expenditure Budget type Recurrent Budget Support Development 4.

Issues 2022 Budget Estimates ($m) 2022 Revised Estimates ($m) 2022 Actuals ($m) 139.8 190.40 30.0 139.8 254.29 65.0 152.9 155.36 43.0 Matter raised during the public inquiry include the following: Bina Harbour Project 3.6 3.7 3.8 The Committee wanted to know the latest development with the Bina Harbour Project.
MOFT deputy secretary who is also a member of the project committee responded that Bina Harbour is currently progressing however; there are some issues with the landowners.

The Committees asked when the government would be expecting the full operation of Bina Harbour with the current progress to date.

Public Accounts Committee Report: June 2023 10 3.9 MOFT responded they are looking at five years' time if things work out well with the landowners.
3.10 The Committee asked if they have signed an agreement with the landowners already, with MOFT advising that this question be directed to the Ministry of Fisheries and Marine Resources (MFMR).

3.11 Apart from the landowner issues, MOFT is following up with MFMR on further details of the model of fish operating processes that the MFMR will implementing so that MOFT can develop suitable incentives to interested fish operators.
3.12 A project for a design and feasibility assessment for planning and waste management and other utilities activities services for Honiara Town was accepted by the Australian program MSSIF, which supports MOFT.

Modifications have been made to ensure that clear criteria for waste management, utilities, and environmental Town where there was improper planning.

Additionally, MOFT3is in discussions with additional parties about potential finance for the entire project.
issues are in place as a result of lessons learned, such as in Noro 3.13 3.14 3.15 The Committee would like to encourage MOFT to work closely with MFMR to support the development of Bina Harbour.

The Committee noted that Bina Harbour Project could have significant impact on the surrounding communities however; its small budget and land issues currently limit this.

The Committee sought feedback from MOFT on this.


PS4commented the budget allocation for the project seems to be small but it is based on the preparatory stage of the project like consultation and addressing land issues.

The donor partners are there for the program and will engage at the right time.

Further, the SIRAP project is looking at road infrastructure from Auki to Bina, which also has some issues, which need to be resolved.
Huawei Towers 3.16 The Committee requested an update on the US $66million loan for the Huawei Towers and queried when will the agreement be signed, drawn down and likely start date for the construction?
3 MOFT is referred to as the Ministry of Finance and Treasury 4 PS is the abbreviation for the Permanent Secretary of any NIinistly Public Accounts Committee Report: June 2023 11 3.17 MOFT informed the Committee that the $66 million financing agreement has been signed, with draw down to take place in line with the agreement.

Construction is expected to start in July 2023.

The Vendor will be shipping 55 towers for Guadalcanal, Central and Isabel Province during the first phase of the project.
The Project aims to set up 30 towers before the South Pacific Garnes.
Advance Warrant limits 3.18 The Committee asked clarificationon advance warrants issues, which were raised recently in Parliament, with the Committee commenting that in the Appropriation Act there is a section that says at no time one can go beyond the approved limit, which is currently set at $150million.When the bill is ready to be regularize that money from the donor cannot go beyond the $150million limit without first increasing the limit.

The Committee is interested in the Ministry's view.
3.19 MOFTconfirmed that the advice they received from the attorney general's chamber stated that when a Minister authorises or signs an advance warrant (AW),it must not exceed the approved ceiling.

In addition, MOFTadvice is however that whilst they are limited to a maximum withdrawal of $150million at anyone time, the total aggregate can go beyond the 150million.

3.20 The Committee requested further details on the AW process and whether donor .
funds are received before the AW is issued given the current cash flow challenges and possible impact on public service delivery if funds are paid and then subsequently reimbursed by donors.

3.21 MOFTresponded that they have clear guidelines on AW, which firstly requires funds must be already be received before issuing the AW.

AG will then only authorise payment if MOFTis certainfunds are received and have sufficient cash available.
South Pacific Games 3.22 The Committee queried how MOFTis tracking concerning the SPGpreparations and how much funds is being spent for the preparation of the games?

3.23 MOFTresponded, they would provide the information on the spending of the games since 2020to date.

Current budget has approved funds for NHA totalling $364 million.

Other Ministries have not provided up to date reporting however, historical data is available.
Public Accounts Committee Report: June 2023 12 Government Borrowing 3.24 The Committee further queried what Government's borrowing plans are for 2023?

3.25 MOFT responded they have in place a borrowing plan for 2023, which includes domestic sources of $433 million, of which $40 million has already been secured last month.

The borrowing plan also shows where funding will be from and for what purpose.

MOFT indicated they would be happy to share a listing with the Committee.
3.26 The Committee asked if the modelling on borrowing includes assessment of impacts on the private sector.

3.27 MOFT stated that the Ministry is looking at a couple of scenarios to ensure that Government response does not trigger increase of inflation.

MOFT is also talking to the CBSI to engage in the secondary market.

These options provides attractive packages for interested parties to engage in bond market.
Seaweed farming 3.28 The Committee referred to an earlier PAC SAB 2023 public inquiry where seaweed appeared to be a good opportunity for our communities and queried what support the Ministry is planning for this area.

3.29 MOFT responded that they are engaged with donors on this opportunity but will need to further discuss with key partners about the importance of the seaweed project especially the short period from planting, harvesting and sale within three to five months.
Discussions with MFAET are ongoing.

DFAT is in the preparatory stage for potential support up to USD15-20million for seaweed investment negotiation through MALD and MFMR for the seaweed project.

Other matters 3.30 The Committee questioned why there are currently continuous power outage and noted that dividends from State owned enterprises should not be paid to Government other needed investment instead it would be better utilised for purchasing more generators and to improve service delivery.
3.31 Further the Committee commented that efforts be made to secure funds to properly locate bettlenut vendors somewhere where chewers can go and enjoy their food without making a mess in the city precinct.

Public Accounts Committee Report: June 2023 13 3.32 In closing,the Committee stressed that 2022 and 2023 has significantbudget deficits and funding gaps that will have impact across public servicesif not properly managed.
08 Office of the Governor General Contingency Warrants Subhead/Item Description Printing, Stationery & photocopying Original Estimates Supplementary Estimates Revised Estimates Actuals 2022 83,562 57,902 14,464 94,423 101-040-0000- 22109 101-040-0000- 22117 101-040-0000- 22118 101-040-0000- 22301 101-040-0000- 22302 101-040-0000- 22514 101-040-0000- 22651 101-040-0000- 22655 Total Entertainment 525,002 64,504 589,506 460,297 Gifts and Presents Maintain - Non Residential Buildings Maintain- Residential Buildings Public Servants - Annual Leave Fares 15,300 5,700 21,000 12,000 274,998 260,000 534,998 237,718 426,260 260,000 686,260 433,835 151,703 20,000 171,703 155,714 Electricity 430,212 66,896 497,108 519,973 Telephone and Faxes 481,712 50,000 531,712 585,002 2,388,749 785,002 3,173,751 2,498,962 Public Accounts Committee Report: June 2023 14 1.
Appropriateness of expenditure Following Cabinet approval, November 18, 2022. the Minister granted the contingency warrant on 2.

Patterns in Expenditure Budget type Recurrent Budget Support Development 3.
Issues Issues of Concern 2022 Budget Estimates ($m) 2022 Revised Estimates ($m) 2022 Actuals ($m) 7.3 - - 9.1 - - 7.0 - - Matters of concern raised by the Committee include the following: Contingency warrant 3.33 The Committee noted that the Governor General Office use of contingency warrant for the circumstances described were appropriate however recommended that some of these expenses should be included in future normal annual budget submissions.
09 Ministry of Health and Medical Service Recurrent Budget - Advance Warrants Subhead/item Description 205-202-0000- 22407 208-217-0000- 22801 Training- Provincial Refund of Previous Years Revenue Original Estimates Supplementary Estimates Revised Estimates Actuals Nil Nil 245,682 245,682 - 29,733 29,733 29,733 Public Accounts Committee Report: June 2023 15 208-202-0000- 22801 231-218-0000- 25005 208-202-0000- 22211 208-202-0000- 22110 201-208-0000- 22202 206-215-0000- 22401 206-001-0000- 21102 206-001-0000- 25005 206-215-0000- 22407 Total Refund of Previous Years Revenue Health Services Grants 220,400 142,652 363,052 142,652 Nil 2,067,650 2,067,650 1,850,550 Fuel 10,000 8,208 18,208 - Publicity & promotions Dmgs& Dressings Conferences, Seminars and WorkshoQ_ Salaries - Public Servants Health Services Grants Training- Provincial Nil Nil 512,977 512,977 133,850 11,000,000 11,000,000 8,337,947 35,700 74,942 110,642 13,290 Nil Nil Nil 584_435 584,435 NA 840,719 840,719 223,925 223,925 - - 266,100 15,730,922 15,997,022 10,508,022 2.
Appropriateness of expenditure Following Cabinet approval, the Minister granted the Contingency Warrant on November 18,2022.

3.34 The Advanced Warrant for $1,191,658 was entirely for Public Servant Salaries not as stated in the Bill split between salaries ($350,939) and Health Services Grant ($840,719).

3.
3.

Patterns in Expenditure Budget Type Recurrent Budget Support Development 2022Budget Estimates ($m) 2022Revised Estimates ($m) 2022 Actuals ($m) 461.6 168.09 40.0 461.6 193.82 40.0 472.7 115.68 24.0 Public Accounts Committee Report: June 2023 16 4.
Issues Matters of concern raised by the Committee include the following: Current level of drugs supplies and outstanding debts 3.35 3.36 3.37 3.38 The Committee is keen to know the current level of drug supplies in the Country and the outstanding debt to drug suppliers The Ministry assured the committee that the stock levels are adequate with current stock at the national medical stores for medicines is 79% and consumables around 89% of expected levels.
The Ministry also confirmed that the Department of Foreign Affairs and Trade (DFAT) allocated $llm of the $15.7m for payments of outstanding invoices, which was supplied last year by the overseas-based suppliers.

The Ministry has utilized $8.2 million which was paid to three preferred suppliers; South Austral Pty Ltd, Alphamed Pty Ltd, and Boucher & Muir Pty Ltd.

In terms of the current outstanding amount, balance is around $26m and with the current situation, stocks have been replenished.
Transportation to provinces remains a challenge.

There are eight containers still at the wharf for months now that need to be cleared.

The issue remains that payments are too slow.

There are ongoing discussion with the Ministry of Finance and Treasury to prioritize these payments.

Plan to re-address the challenge of transportation to Provinces 3.39 3.40 The committee was interested better understand why the distribution of medicines to the Provinces is still a problem.
Health services in Honiara and the Provinces should be at the same standard.

The Committee would like to know of the Ministry's plans to address this ongoing issue.

The Ministry advised they are undertaking a supply chain assessment that is expected to be completed in the next two weeks.

This is to look at the entire supply chain process from manufacturers to Honiara ports and including reviewing the payments system.
What is yet to be established is whether the gaps are within the National Medical Stores or the second-level stores and facilities.

The Ministry is currently collaborating with UNFPA to also look at stock management, more frequent supervisory visits to Provinces.

training and Public Accounts Committee Report: June 2023 17 Family planning training 3.41 3.42 3.43 The Committee sought clarification on the purpose of family planning training allocations in this budget.
This has been funded by bilateral partners committee strongly encouraged that our Solomon Islands component prioritize support IS, 16, and 17 years.

in this area especially access to health services for women under and the to also The Ministry of Health and Medical Services pointed out that current family planning training is targeting counselling services to educate couples on how to use such family planning methods.
There are different as pills, IUD, inserting a device under chemicals to avoid pregnancy and use of condoms.

This training is to upskill our nurses to provide the right counselling advice to married couples and women on the suitable methodes) types of family planning methods the skin of a woman that slowly releases to use.
interest The Ministry noted that women's their daily work and other challenges like cultural services will assist women and couples to consider nutrition and the recovery of a woman as important considered in raising a child.

in reproductive health services depends on issues distance and so forth.
These the socio-economic, well-being, factors that need to be Recommendation 1 recommended il'he Committee component on family planning training and access to health services for women under 15, Ll6,and17 years old.

the Ministry increase the Solomon Islands budget that Use of donor funds 3.44 3.45 3.46 The Committee is curious to know about the donor agencies.

The Committee Provinces are being completed without be fully operational.
the advances that have been promised by also pointed out that donor funded clinics in the the staff facilities and necessary equipment to The Ministry noted that partners' project accounts which were received but not captured in the 2022 budget.

the advances are for the Ministry's development that The Ministry also noted the Committee comments on use of development build clinics without all the infrastructure limited budget across Provinces and plans to do in stages depending availability.

budget needed.
This is due to the need to share on budget to Public Accounts Committee Report: June 2023 18 Recommendation 2 [he Committee recommends that all new donor funded health facilities should be opened only when all operational needs including staff quarters, equipment and medicines are in lace at the time the facilities are handed over to the Ministr .~~---~----------------~-- 12 National Parliament of Solomon Islands (NPSI) Contingency Warrants Subhead/Item Description 101-282-0000- MP's 21210 101-001-0000- 26001 Total Allowances Pensions & Gratuities Original Estimates Supplementary Estimates Revised Estimates Actuals 2022 880,979 550,000 1,430,979 352,630 2,036,000 2,388,630 1,233,609 2,586,000 3,819,609 NAs NAl NAl The contingency warrant is to cater for number of program and activities as follows: • • Pension and gratuity payments Parliament members allowances • Budget for Covid-19 response and recovery programs • Terminal grant and death benefits for late Hon.
Member for West Kwara'ae.

2.

Appropriateness of expenditure Following Cabinet approval, the Minister granted the contingency warrant on July 18, 2022.

5 The items with ''NA'' are payroll related codes with no specific actual reflected against the budget item, however total payroll actuals by Head for 2022 is provided in table below under section 3.

Public Accounts Committee Report: June 2023 19 3.

Patterns in Expenditure Budget type Recurrent Budget Support Development 4.
Issues 2022 Budget Estimates ($m) 2022 Revised Estimates ($m) 2022 Actuals ($m) 96.2 - 2.7 99.9 - 2.7 94.2 - 0.9 Matters of concernraised by the Committee include the following: Clothing Allowances 3.48 The committeesqueried if the clothing allowancesfor all members of the parliament (MP)has been paid in full this year 2023.

3.49 The NPSIresponded that all the MPs clothing allowanceswere processed and paid in 2023.
Parliament Committee 3.50 The Committeesremains concerned that the work and progress of the committeesis still a challengewith insufficientbudget.

3.51 The NPSIresponded that securing sufficientbudget is still the main challenge currently faced.

NPSI is discussing options with MOFTand MHMS.

Death Benefit for Member of the Parliament 3.52 The Committee noted that death benefits of the members of the parliament must be included in the budget.
3.53 The NPSI responded that these events are both unplanned and unforeseen.

As such through a contingency warrant when the current process is to allocate budget required.

Public Accounts Committee Report:June 2023 20 Pension Benefits 3.54 The Committee questioned when did pensions for MP's start and if any changes since inception.

3.55 The NPSI responded that it was likely to have commenced in 2013.
The current entitlements are if you have served for at least one year and above 50 years old you are entitled.

Governor General and Prime Minister Benefits/Pension 3.56 The Committee queried if the Governor General (GG) and Prime Minister (PM) has different scheme of services for their entitlements and pension.

If the PM decided not to contest does he decide between which pension to take?
3.57 The NPSI responded that the PM entitlements are set out under the PM Acts and the GG as from 2022 has to choose to take their pension either under the MPA or under GG entitlements.
14 Office of the Prime Minister and Cabinet Contingency Warrants Estimates of the amount further required in the year ending 31 December 2022 for the services of this head: $6,500,000 Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates Actuals 2022 101-301-0000- 22110 101-304-0000- 22522 Publicity and Promotion Patients - Overseas Fares & Other costs Telephone and Faxes 101-300-0000- 22655 101-304-0000- Capex- Office 23011 Equipment 397,663 500,000 897,663 823,026 100,000 4,282,000 4,382,000 2,006,928 8,009,309 218,000 8,227,309 6,690,641 193,052 1,500,000 1,693,052 338,613 Total 8,700,024 6,500,000 15,200,024 9,859,209 Public Accounts Committee Report: June 2023 21 Advance Warrants Estimates of the amount of this head: $2,484,000 further required in the year ending 31 December 2022 for the services Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates Actuals 2022 MP's and MPA's- Overseas Other Costs Consultancy Fees 218-304-0000- 22506 219-302-0000- 22105 Total Nil Nil Nil 1,950,000 1,950,000 892,834 534,000 534,000 455,200 2,484,000 2,484,000 1,348,034 2.
Appropriateness of expenditure On September 23 and November 18, 2022, the Minister gave his approval to the contingency warrants.

On September 7 and 23,2022, the Minister approved the Advance Warrants.

3.

Patterns in Expenditure Budget Type Recurrent Budget Support Development 4.
Issues 2022 Budget Estimates ($m) 2022 Revised Estimates ($m) 2022 Actuals ($m) 78.9 - 107.1 85.4 4.03 107.1 72.0 2.69 102.4 Matters of concern raised by the committee as follows: Public Accounts Committee Report: June 2023 22 KDAC Consultancy Fees 3.58 The Committee understands Kolombangara Development Advisory Committee (KDAC).

The Committee asked the Office of the Prime Minister and Cabinet (OPMC) to update the Committee on the functions and work of KDAC.
that the item Consultancy Fees of $534,000 is for the 3.59 The OPMC stated that KDAC was established to provide advisory services to the Kolombangara Land Transport Foundation (KLTF),providing capacity building and strengthening the leadership and partnership with stakeholders.

The OPMC are members of KDAC.

3.60 The Committee was further informed that KLTF (Kolombangara Land Trust Foundation) has hired KDAC as a subcommittee to represent the Solomon Islands Government.
There is no deadline other than for the committee to assist KLTF in resolving open issues while working side by side with them until the project is realized.

The KDAC Subcommittee of the OPMC is in charge of the Committee.

Government newspaper and Solomon Islands Broadcasting Corporation (SIBC) 3.61 The Committee is interested to know more about the Contingencies Warrant expenditure on the government newspaper and Srnc.
3.62 According to the OPMC, a section within the organization will be in charge of creating the newspapers with assistance from the line ministries' media officers.

3.63 The Committee was further informed that as of last year, they are still to spend the money due to late approval of this Contingencies Warrant last year and so the reason for it to appear in the Supplementary for this year to reappropriate for spending in 2023 and officially launch this initiative.
Public Accounts Committee Report: June 2023 23 20.

Ministry of Culture and Tourism 1.
Variation in appropriation Recurrent Budget - Advance Warrants Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates Actuals 2022 Actuals (Jan - Mar 2023) 202-382-0000- Capex - Other 23015 202-382-0000- 22404 Equipment Training - Other 202-382-0000- 22401 202-382-0000- 22301 Conferences, Seminars and Workshop Maintain - Non Residential Buildings Enterta in ment 202-382-0000- 22117 202-382-0000- Publicity & 22110 promotions 202-382-0000- Consultancy 22105 Fees Capex- 202-382-0000- Computer 23013 Software and Hardware Total Purpose: Nil Nil Nil Nil Nil Nil Nil Nil 83,795 83,795 23,329 23,329 42,850 42,850 152,355 152,355 38,089 38,089 21,425 21,425 135,691 135,691 59,514 59,514 Nil 557,049 557,049 - - - - - - - - - - - - - - - - - - 3.64 The Ministry's ability to deal with the impacts of COVID-19was the major goal of this support.
The funds were used to employ a technical advisor to assist with health and safety concerns.

The Ministry of Culture and Tourism (MTC) did not get the money into their CBSIaccount on time since the creation of the fund took too long.

It didn't get used because it arrived too late last year.

3.65 MCT is asking for the money to be used for product development, training, capacity building and to buy various equipment that will be needed by the Ministry.

Public Accounts Committee Report: June 2023 24 2.


Appropriateness of expenditure The Minister gave the Advance Warrant his blessing on November 7, 2022.3.

Issues of Concern Matters of concern raised by the Committee include the following: 3.66 3.67 this amount Since this money is yet to be used, the Committee questioned whether requested has already appeared in the recent 2022 SAB2022 and is it the same amount.
The Ministry stated that yes this same amount has already appeared in the recent 2022 SAB 2022.

21.

Ministry of Commerce, Industry, Labour and Immigration 1.
Variation in appropriation Advance Warrants Subhead/Item Description Original Estimates Supplementary Estimates Revised Estimates Actuals 2022 219-393-0000- 22115 Total Purpose: Passports Nil Nil 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 3.68 Through World Bank budget support, the Ministry received the $2M advance for an additional 5,000 passports and 2 new enrolment units for passport in the provinces.
While the enrolling unit has not yet arrived, the Ministry warrant enrolment has already received the passports.

2.

Appropriateness of expenditure The Minister gave the Advance Warrant his blessing on November 17, 2022.

Public Accounts Committee Report: June 2023 25 42.4 - 33.7 3.

Patterns in Expenditure Budget type 2022 Budget Estimates ($m) Recurrent Budget Support Development 4.
Issues 2022 Revised Budget ($m) 2022 Actuals ($m) 42.4 - 33.7 35.3 - 16.9 Matters of concern raised by the Committee include the following: Mobile Enrolment Unit 3.69 The Committee sought an update on passport enrolments in the Ministry.

3.70 3.71 The Ministry stated that the passport enrolment is the first process by which any applicant completes the forms including getting thumb prints using the enrolment units.
The Ministry will first establish these enrolment units in the two provincial centres, Gizo and Auki and later will be rolling out to Taro and other provinces.

The Ministry is also planning to build one or two immigration officesin the provinces however all processing will still be done in Honiara.

The Ministry is trying their best to be more effectiveand efficientin the delivery of their services,especiallyin Honiara.
The Ministry is providing the servicesof the mobile enrolment to help our people from the provinces to enrol from their provincial centres.

The Ministry also have one mobile unit in the Consular Office in Brisbane, Australia that can help our people to renew their passport, rather than to fly in to Honiara.

The costof the enrolment unit is around USD$25,000.00.
Passport contract with overseas firm 3.72 The Committee noted that there is an existing contract for the provision of 10,000 passports every year.

The Committee would like to know if the 5,000 new passports for which this supplementary budget is for is to complete the 10,000 passport for this year or is in addition?
Public Accounts Committee Report:June 2023 26 3.73 The Ministry responded that the Bio on Transfer (BOT) is an agreement between the Solomon Islands Government and an Irish Company from Malaysia signed in 2015.

The Ministry stated in the agreement the parties agreed to supply 10,000 unit of blank passport every year, which includes ordinary, official and diplomat passports at the price of USD$110.00 per blank passport.
Since 2015 up until 2020, there has been a significant change in demand for passports and so the amount estimated back in 2015 for the next twenty years has changed.

This amounts to an estimated $8 million each year in the budget however from 2020 to 2022 the Ministry budget was also cut to $6mio for between 5000 to 6000 passports each year.

After the Labour Mobility policy came into effect the demand for passports easily gets to the 10,000 units per year.
3.74 The Committee noted that the issuing of passport is now increasing each year and recommended the Ministry put sufficient budget in 2024 and future years to properly prepare for this change.

The Committee queried if the Ministry has any data from MFAET and MEHRD on likely number of students and others who will need to travel in 20247.
3.75 The Ministry in response stated there is currently no data provided by the Ministry of Foreigner Affairs and Ministry of Education of likely traveller in coming year 2024.

Given applications are now online these Ministries should have data to share and will be approached as part of the 2024 budget planning for MCILI.

Betelnut 3.76 The Committee recommended the Ministry consider a viable strategy and location for local farmers to sell their betelnut products.
This is a significant source of livelihood for Solomon Islanders for paying of school fees and other households needs.

The Ministry noted this suggestion.

Consumer Affairs and Price control 3.77 The Committee commented they have received community feedback that the quality of goods and services in terms of value for money is poor and becoming a serious concern for our people.
Recommendation 3: Ministry of Commerce,Industry, Labour and Immigration The Committee recommends that the Ministry of Commerce,Industry, Labour and Immigration implements or updates its policy on management and monitoring of the quality of consumer goods and services in Solomon Islands.

Public Accounts Committee Report: [une 2023 27 3.78 The Ministry noted on this concern.
Establish in country Passport printing 3.79 The Committee noted that printing of passport overseas is very much expensive and that the Ministry should consider investing in building capability to print passports in country.

3.80 The Ministry in response confirmed that the 20 year agreement with a Malaysia company covers this however this is due for review every five years.

The review to this agreement was proposed in 2019 and 2020, however, the review was put on hold due to the COVID-19.
Currently, the Ministry is reviewing the 2012 Immigration Act and the Passport Act 2012.

The Passport Act still does not have a commencement date.

Once these matters are addressed before the Ministry will look into the Bio On Transfer (BOT).

3.81 In relation to in country printing of passports, the Ministry agrees with the Committee's views.
The challenge the Ministry is facing is the lack of technical capacity and suitable equipment however if these are addressed the Ministry would like to print passports in country.

In addition, the Ministry informed the committee that Belarus was the passport supplier previously however when comparing Belarus and the current Irish company, the Irish company is safer and has more secure systems than Belarus.

3.82 The Ministry will provide a copy of the signed agreement to the Committee.
23 Ministry of Fisheries and Marine Resources 1.
Variation in appropriation Subhead/item Description Original Estimates Supplementary Estimates Revised Estimates Actuals 202-001-0000- Others - 22515 202-001-0000- 23013 Local Fares Capex- Computer Software and Hardware Nil 75,000 75,000 15,900 50,000 220,000 270,000 147,008 Public Accounts Committee Report:June 2023 28 Nil 6,000 6,000 62,000 60,000 20,000 82,000 31,715 91,715 37,000 75,000 112,000 - NA7 NA2 NA2 NA2 192,8641 1,556,1241 Equipment 202-001-0000- Capex - Office 23011 202-001-0000- Public Servants- 22514 202-001-0000- Training- 22404 Annual Leave Fares 202-001-0000- 22401 Other Conferences, Seminars and Workshop Electricity House rent Motor Vehicles 202-001-0000- 22651 202-001-0000- Publicity & 22110 promotions 202-001-0000- Maintain - 22306 202-001-0000- 27001 202-001-0000- 22211 202-001-0000- 22205 202-001-0000- Printing, Stationery 22109 202-001-0000- 22101 202-001-0000- NPF- Employers 21301 Office Stationery & photocopying Advertising Fuel 202-001-0000- 21205 contribution Various Allowances - Public Servants Public Servants 202-001-0000- Housing Allowance- 21202 202-001-0000- Salaries - 21102 202-001-0000- Printing, Stationery 22109 202-432-0000- Capex - Non 23002 & photocopying Public Servants Residential Buildings 6 These budget lines are repeated with more than one warrant being applied to the budget line.
The Actual is the total actual for the year having applied the various advanced warrants.

7 TIle items with "NA" are payroll related codes with no specific actual reflected against the budget item, however total payroll actuals by Head for 2022 is provided in the table below.
Public Accounts Committee Report: June 2023 29 54,560 615,000 669,560 99,907 2,190,155 625,000 2,815,155 2,805,3951 3,879,365 376,597 4,255,962 1,556,1241 231,000 113,079 344,079 305,079 2,190,155 374,344 2,564,499 2,805,3951 49,640 32,702 82,342 54,5901 Consultancy Fees Consultancy Fees 202-001-0000- 22105 202-430-0000- 22105 202-432-0000- Capex- Non 23002 202-432-0000- 22105 202-430-0000- 22105 202-001-0000- 22651 Electricity Consultancy Fees Residential Buildings Consultancy Fees Total 13,566,193 2,870,293 16,436,486 2.
Appropriateness of expenditure On July 19 and December 8, 2022, the Minister approved the Advance Warrant.

3.

Patterns in Expenditure 2022 Budget Estimates ($m) 2022 Revised Budget ($m) 2022 Actuals ($m) 23.9 32.00 15.0 23.9 38.29 15.0 19.1 8.92 6.9 Budget Type Recurrent Budget Support Development 4.

Issues Matters of concern to the Committee are as follows: Bina Region Arrangements for Governance (BRAG) Project 3.83 The Committee is curious in BRAG'sinvolvement in the Bina Harbour Project.
Public Accounts Committee Report: June 2023 30 3.84 The BRAGinitiative, according to the Ministry, is a separate undertaking having connections to the Bina initiative.

The BRAGinitiative is important in supporting the Bina project because it helps landowner organizations get ready to set up the proper institutional governance structures and mechanisms.

The establishment of BRAGwill help landowner organizations get ready for business and entrepreneurial ventures as and when the time comes.
This is a result of the Ministry's observation of the lessons from the Noro and Tina Hydro projects and adoption of a slightly different strategy, particularly in preparing landowner groups.

The Ministry is moving forward with its awareness initiatives for the BRAGproject, which began in 2022.

Seaweed Farming 3.85 The Committee asked the Ministry on the application process to farm seaweed.
3.86 The Ministry stated that the seaweed commodity is in high demand, with current allocation not sufficient that the seaweed is a commodity that has quick returns due to short period from planting through to harvesting.

to deal with current application volumes.

The Ministry noted 3.87 They also stated that in terms of the process, upon receipt of the application, viability assessment is the first step undertaken.
If it is viable the Ministry will link the applicant with the businesses (buyers) the Ministry has in their records, to start engaging with the community to undertake further assessment and community awareness.

The support from the Ministry is ongoing and focuses on viable areas only.

Consultation Fees 3.88 The Committee raised concerns on the number of consultation fees are included in the budget.

The Committee queried how many reports have these consultants produced from last year 2022.
3.89 The Ministry responded that they do not have the reports at hand but continue to records of accomplishment of the minutes and other relevant documents.

The Ministry committed to providing further details of the consultancies undertaken for the period of 2022 financial year.
Public Accounts Committee Report: June 2023 31 Original Estimates Supplementary Estimates Revised Estimates Actuals 2022 211,075 4,000 215,075 129,890 Nil Nil Nil Nil Nil Nil 75,000 75,000 47,000 47,000 19,000 19,000 - - - 58,650 58,650 3,941 31,700 31,700 - 55,000 55,000 38,970 299,500 300,000 599,500 258,135 Nil 14,265 14,265 - 510,575 604,615 1,115,190 430,936 24 Ministry of Public Service Advance Warrants Subhead/item Description 201-001-0000- 23014 Capex- Specialised Equipment Public 201-001-0000- Servants - 22509 201-001-0000- 22508 201-001-0000- 22404 201-001-0000- 22401 201-001-0000- 22205 201-001-0000- 22109 Local Accommodation Public Servants - Local Fares Training Other Conferences, Seminars and Workshops Office Stationery Printing Stationery and Photocopying 201-001-0000- Consultancy 22105 201-001-0000- 22101 Advertising Fees Total 3.90 The Ministry during their presentation explained that the $604,615 funding allocation was from the Australia (DFAT),under the budget support and came as an 'Accountable cash grant.'
This budget supports capacity in the Ministry to implement four activities as follows: (a) The sexual harassment survey across the public service.

A tender has been made and a consultant has been doing the work and there is a report produced which the Ministry is working on.

A cabinet information paper is also being prepared.

Public Accounts Committee Report: June 2023 32 (b) Under take reviewing of organizational audit across the service including in the provinces e.g.
Malaita enabling infrastructure, staff houses or identifying what hinders posting public servant in the provinces.

(c) Installation of CCTVin the Ministry, the electronic attendance management system and cameras install around the premises (d) To extend the National Development Strategy (NDS)2017-2021 for the SI government public service, which is currently up for renewal.

The ministry uses the NDSto inform this five-year strategy, which includes some mid-year strategy.
This covers things like preserving the Solomon Islands' sense of national security, promoting gender equality, developing those medium-term goals, and coming up with mid-year-term projects.

2.

Appropriateness of expenditure The Minister gave the Advance Warrant his blessing on August 29,2022.

3.

Patterns in Expenditure Budget type Recurrent Budget support Development 4.
Issues 2022 Budget Estimates ($m) 2022 Revised Estimates ($m) 2022 Actuals ($m) 26.2 0.51 2.8 26.2 1.12 2.8 24.6 0.43 - Matters of concern raised by the Committee include the following: Office Attire/Dress Code of Public Servants 3.91 The Committee is concerned about the lack of upholding proper dress code by the public servants generally across all ministries as stipulated under the Code of Conducts.

The Committee is interested to know what the Ministry of Public Service is doing to address this issue.
Public Accounts Committee Report: June 2023 33 3.92 The Ministry of Public Service agreed with the Committee's observation and expressed the same worry.

The Ministry will keep reminding the Public Servants to uphold those standards as the guardian of the Code of conduct.
Contract Policy for Senior Public Servants 3.93 The Committee understands that the Ministry is rolling out its contract policy initiative for senior public servants, starting with the Permanent Secretaries (PS)and Under Secretaries(US)and so the committee is interested to know the status of this policy and where in the structure has the Ministry addressed to date.
3.94 The Ministry stated they have completed the contracts for the Deputy Secretaries and Under Secretariesof the line ministries and now they are going down to the nine Provinces.

This is a policy directive from Cabinet to decentralise senior public servants to the provinces and so we now have established contracts for the Deputy Provincial Secretaries,Provincial Planners, and Provincial Treasurers in addition to the Provincial Secretarieswho are already on contracts.
3.95 The Committee were also informed that the next step is to do contracts for the middle officemanagers that hold positions like Financial Controllers (FC),Human Resource Managers (HRM),and Directors especially those that are directly in line to carry out the Government policies.
Recommendation 4: Ministry of Public Service recommends The Committee detailed cost analysis contract all the middle Office Managers such as Financial Controllers, Human Resource Managers and Directors of the Government Ministries.
the Ministry of Public Service produce (salaries, emoluments & other entitlements) of the policy to that a Sexual Harassment Survey 3.96 The Committee noted that one of the four activities that this Advance Warrant under the Supplementary budget was to carry out a sexual harassment survey within the Public Serviceand produce a cabinet paper on its findings.

The Committee is interested to know more about the outcome of this survey.
Public Accounts Committee Report: June 2023 34 3.97 is a problem and that there are cases across the Public Service.

The The Ministry stated that through the survey they have discovered that sexual harassment Ministry further stated that the findings of the survey are now finalised and it will then be presented in the form of a cabinet paper to the cabinet for endorsement.

Hopefully once Cabinet approves, the Ministry will come up with a new Anti-Sexual Harassment Policy.
3.98 The Committee was also further informed that in terms of data, sexual harassment cases, as stated in the survey, stands at less than 50 percent and this is slightly lower due to hesitation to report such cases by those that are victims.

Non-Establish Staff Classification 3.99 The Committee understand that the lower ranks of Public Servants on level 1 & 2 are non-established staff and the Committee wants to emphasise that this model was adopted from the British Colony and is no longer appropriate.
3.100 The Ministry stated that they have considered this issue but budget constraints continue to be the main challenge.

The intention remains to abolish the classification of non-established roles and to increase the salary for those at level one and level two .

.

ecommendation 5: Ministry of Public Service The Committee recommends that the Ministry of Public Service abolish the non established roles classification for level one and two and reassess appropriate remuneration level for these roles.
26 Ministry of Justice and LegalAffairs Advance Warrants Subhead/item Description 221-001-0000- 23002 221-001-0000- 23011 Capex- Non Residential Buildings Capex - Office Equipment Original Estimates Supplementary Estimates Revised Estimates Actuals 2022 Nil Nil 23,323 23,323 23,323 385,507 385,507 385,507 Public Accounts Committee Report: [une 2023 35 I Total Nil I 408,830 I 408,830 I 408,830 I 3.101 The Ministry explained that the Advance warrant towards the end of the last year was purposely to look for a new office from the LKP building, as it was too small.
A new site at Telekom was identified in late 2022 and the budget was used to secure the new facility, complete cabling and setup internet and setup the office.

2.

Appropriatenessof expenditure The Minister gave the Advance Warrant his blessing on September 28,2022.

3.

Patterns in Expenditure Budget Type 2022 Estimates ($m) Budget 2022 Budget ($m) Revised 2022 Actuals ($m) Recurrent Budget Support Development 40.9 - 3.0 40.9 0.41 3.0 36.5 0.41 0.3 4.
Issues of Concern Matters of concern raised by the Committee include the following: The Committee noted the Ministry's presentation and did not raise any matters of concern.

29 National Judiciary 1.
Variation in appropriation Contingency Warrants Subhead/Item Description Supplementary Estimates Actual 2022 Public Accounts Committee Report: June 2023 36 61,000 64,870 35,000 Nil Nil 70,000 131,000 104,445 27,000 91,870 31,077 35,000 70,000 27,614 50,000 50,000 70,000 70,000 - - 120,000 80,000 200,000 198,229 15,300 33,609 29,070 70,000 85,300 - 150,000 183,609 425,859 15,000 44,070 8,700 292,024 50,000 342,024 36,398 1,307,935 300,000 1,607,935 797,899 500,000 1,297,899 NA NA 40,000 30,000 70,000 29,066 15,000 50,000 65,000 44,400 250,608 80,000 330,490 34,780 275,490 70,000 345,490 241,020 152,120 20,000 172,120 15,604 15,000 10,000 15,000 30,000 6,000 16,000 - - 28,924 50,000 78,924 59,200 10,702 20,000 30,702 - Annual Leave Fares 101-536-0000- Public Servants- 22514 101-535-0000- Public Servants- 22514 101-534-0000- Public Servants- 22514 Annual Leave Fares Equipment Equipment Annual Leave Fares 101-533-0000- 23013 Annual Leave Fares Capex - Computer Software and Hardware 101-533-0000- Capex - Office 23011 101-533-0000- Public Servants- 22514 101-532-0000- Capex - Office 23011 101-532-0000- Conferences, Seminars 22401 101-532-0000- 22205 101-532-0000- 22116 101-532-0000- 21201 101-531-0000- Court of Appeal 21211 101-471-0000- Public Servants- 22514 Medical Assessment Housing Allowance Office Stationery and Workshop Allowances 101-471-0000- 23013 Annual Leave Fares Capex- Computer Software and Hardware 101-471-0000- Public Servants - Local 22510 101-471-0000- 22509 Other costs Public Servants- Local Accommo- dation Local Fares 101-471-0000- Public Servants- 22508 101-471-0000- 22205 101-471-0000- 22204 Office Stationery ICTSupplies 101-530-0000- 23013 Capex- Computer Software and Hardware 101-530-0000- Capex - Office 23011 Equipment Public Accounts Committee Report: June 2023 37 98,000 11,730 25,050 15,963 75,000 173,000 137,251 14,000 25,730 - 27,000 52,050 2,000 26,000 41,963 - 294,651 150,000 444,651 204,695 371,754 250,000 621,754 624,903 1,524,541 350,000 1,874,541 1,797,855 250,500 64,000 314,500 327,791 26,775 30,600 6,000 32,775 - 100,000 130,600 12,000 105,772 100,000 205,772 66,037 38,686 20,000 58,686 2,365 Telephone and Faxes Annual Leave Fares Water Office Stationery ICTSupplies Motor Vehicles 101-530-0000- Public Servants- 22514 101-530-0000- Maintain - 22306 101-530-0000- 22205 101-530-0000- 22204 101-001-0000- 22656 101-001-0000- 22655 101-001-0000- 22651 101-001-0000- Public Servants- 22514 101-001-0000- Maintain - 22306 101-001-0000- Maintain - 22302 101-001-0000- Maintain - Non 22301 101-001-0000- 22205 Motor Vehicles Electricity Office Stationery Residential Buildings Residential Buildings Annual Leave Fares Total 6,348,573 2,940,000 9,288,573 4,431,289 2.
Appropriateness of expenditure The Minister approved the Contingency Warrant on the 24th October 2022 following Cabinet approval.

3.

Patterns in Expenditure Budget Type Recurrent Budget Support Development 4.
Issues 2022 Estimates ($m) Budget 2022 Budget ($m) Revised 2022 ($m) Actuals 31.1 - 5.0 34.0 - 5.0 28.1 0.07 3.4 Matters of concern raised by the Committee as follows: Public Accounts Committee Report: June 2023 38 Insufficient Funding 3.102 The Committee noted that over the recent past inquiries, the National Judiciary (NJ) made budget submissions for similar expenses for court circuits, the court of appeal activities and other contractual commitments.
The Committee queried how much NJ needed and whether there is a business, case made on these matters.

3.103 The Chief Executive Officer informed the Committee that they have not done any business case but rather they are looking forward to their annual report, which will show the challenges faced by the National Judiciary concerning insufficient funding that has become an ongoing issue for the office.
3.104 The NJ admitted that insufficient funding is an ongoing issue taking into account the geographical locations of our small islands and the local courts concerning the need for local court circuits in the country.

3.105 The Committee urged the National Judiciary to produce a business case and submit it to the budget unit within MOFT about the ongoing funding challenges.
Court Circuits 3.106 The Committee requested further details on which judicial circuits and for which courts the contingency warrant related to.

3.107 The Chief Executive Officer informed the Committee that the court circuits include the Court of Appeal, High Court, Customary Land Appeal Court, the Magistrate Court and the Local Court.
Disposal rate of Court of Appeal Cases 3.108 The Committee enquired into the number of cases in which the court of appeal managed to dispose of under this contingency warrant.

3.109 The Registrar informed the Committee that despite the financial challenges faced by the National Judiciary and with the Contingency Warrant two sittings were held Public Accounts Committee Report: June 2023 39 which spread over four weeks.
Forty Court of Appeal cases were completed last year with a completion rate of 102%under the Contingency Warrant, which shows a drop from the year 2021.
END OF REPORT Public Accounts Committee Report: June 2023 40 Appendices Committee Functions The Committee is established under Standing Order 69; an Order made pursuant Constitutiow and has the functions, together with the necessary powers to discharge such, to the (a) examine the accounts prescribed by Section 77 of the Public Financial Management Act 20l3, together with the report of the Auditor General thereon, and to report the results of such examination to 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 excesses of expenditure; (e) examine such other accounts laid before Parliament as the Committee may think fit, together with any auditor's report thereon and to report the results of such examination to Parliament; (d) summon any public officer to give information on any explanation, or to produce any records or documents which the Committee may require in the performance of its duties; (e) consider in detail the Draft Estimates prepared by the Government in support of the Annual Appropriation Bill; (f) summon and examine the Accounting Officers and Technical staff 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 Estimates draw 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 recommendations from the Government.
8 Section 62, Constitution of Solomon Islands 1978.

Public Accounts Committee Report: June 2023 41 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 Inquiry into the 2022 Supplementary Appropriation Bill 2023 (No.2 of 2023) Day 1/2023 Monday 22nd May, Parliament Building, 10:22AM 1.

2.

3.

Members Present Han.

Douglas Ete, MP- Chairman Han.

Matthew Wale, MP Han.


John Dean Kuku, MP Han.

Rick Houenipwela, MP Han.

John Maneniaru, MP Han.

Commins Mewa, MP Han.

Ethel Vokia, MP Apologies Han.

Silas Vaqara Tausinga, MP Han.

Lilly Maefai, MP Han.

Alfred Efona, MP Han.

Claudius Tei'ifi, MP Secretary Mr. David Dennis, Auditor General 4.
Secretariat Public Accounts Committee Report: June 2023 42 Mr. Heston Renee, Committee clerk Ms. Salome Pilumate, Committee Secretary Mr. Whitmon Tabiru, Committee Secretary Ms. Sherilyn Ragoso, Hansard Officer Ms. Theresa Nori, Hansard Officer Mr. Greg Kinimete, Hansard Officer Mr. Pamentha Golo, lCT Officer Mr. Lawrence Scott, Media Officer 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 2022 Supplementary Appropriation Bill 2023 (No.2 of 2023) The Hearing proper commenced and the following witnesses from the Ministry of Finance and Treasury (MoFT) were admitted.

Hearing 1Witnesses i. Mr. McKinnie Dentana, Permanent Secretary 11.
Mr. Coswell, Deputy Secretary Fiscal iii.

Mrs. Marcellina Loe, Director Budget iv.

Mr. Selwyn Takana, DSE 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 for lunch at 11:28 am The Hearing proper Ministry of Health and Medical Services (MHMS) were admitted: resumed at 1:51 pm and the following witnesses from the Public Accounts Committee Report: June 2023 43 Hearing 2 Witnesses Dr. Nemia Bainivalu,DSPH/PS (Supervising) i. Dr. GeorgeMalefoasi,CEO,National ReferralHospital ii.

iii.

Mr. WesleyKukutu, Manager, National MedicalStore iv.

v. vi.
v. vi.

Mr. JacobAkao,FC Mr. Umata Riimana,CA Ms.Judy Sipendi,FMA 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 2:24 pm.

The Hearing proper resumed at 2:31 pm and the following witnesses from the Office of the Prime Minister and Cabinet were admitted: Hearing 3 Witnesses i. Mr. Leonard Ofanu'u, DSPMC(SPM)Supervising ii.
Ms. FlorenceJoel,DSTC iii.

Mr. MalcolmFoufaka Soai,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 2:41 pm The Hearing proper Solomon Islands Electoral Commission (SIEC)were admitted: resumed at 2:43 pm and the following witnesses from the Hearing 4 Witnesses i. Mr.Jasper Anisi, Chief ElectoralOfficer ii.
Mr. Reuben Rongomea,Chief FinanceOfficer The witnesses made their opening presentation before the Committee.

Public Accounts CommitteeReport:June 2023 44 The Committee questioned the witnesses based on evidences presented.

Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearing suspends at 2:49 pm The Hearing proper National Judiciary were admitted: resumed at 2:51 pm and the following witnesses from the Hearing 5 Witnesses i. Mrs. Myounie, T. Ofasia, Regitrar ii.
Mr. Joseph Bibiasi, CEO/NJ 111.

Mr. Dayson Boso, Local Court Coordinator iv.

Mr. Lionel Menimer, FC/ NJ 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 for lunch at 3:05 pm.


The Hearing proper Ministry of Fisheries and Marine Resources (MFMR)were admitted: resumed at 3:16 pm and the following witnesses from the Hearing 6 Witnesses i. ii.

iii.

iv.

v. Dr. Christian Ramofafia,PS Mr. Patteson Lusi, DSC Mr. Alick Misibini, CPA (BRAG) Mr. Julio Aihunu, CC (Bina) Mrs. Mary Vuto, CPA Mrs. Ivory Akao, DDI VI.

vii.

Mrs. RonellePanda, DDPP viii.

Mrs. Caroline Menigi, FC (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.

Public Accounts Committee Report: June 2023 45 8.

Adjournment No closing prayer was said.

The hearing adjourned at 3:32 pm Day 2/2023 Wednesday 24th May, Parliament Building- Conference Room 2,10:04 AM 1.

Members Present Hon.

Douglas He, MP- Chairman Hon.

Matthew Wale, MP Hon.

John Dean Kuku, MP Hon.

John Maneniaru, MP Hon.

Claudius Tei'if, MP Hon.


Ethel Vokia, MP Hon.

Commins Mewa, MP 2.

Apologies Hon.

Rick Houenipwela, MP Hon.

Silas Vaqara Tausinga, MP Hon.

Alfred Efona, MP Hon.

Lilly Maefai, MP 3.

Secretary Mr. Donald Becha Suia, Senior Auditor Mr. Orinza Moveni, Senior Auditor 4.
Secretariat clerk Mr. Heston Renee, Committee Ms. Salome Pilumate, Committee Secretary Ms. Cordney Wale, Committee Secretary Ms. Ivory Iruha' a, Committee Secretary Ms. Monica Sekonga, Senior Admin Committees Mr. Boniface Supa, Director Mr. Patrick Balou, Research Officer Ms. Florida Tamu, Library Assistant Ms. Sherilyn Ragoso, Hansard Officer Information Services Public Accounts Committee Report: June 2023 46 Mr. Greg Kinimete, Hansard Officer Mr. Pamentha Golo, ICT Officer Mr. Philemon Loe, 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 2022 Supplementary Appropriation Bi112023 (No.2 of 2023) The Hearing proper commenced and the following witnesses from the Ministry of Infrastructure Development were admitted.

Hearing 7 Witnesses 1.

Mr. David Kusilifu, Clerk to National Parliament 11.

Mr. Lloyd Bera, FC iii.

Ms. Alice Tusipua, Supervising HRM The witnesses made their presentation before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.
Discussion ensued.

Evidence concluded and witnesses withdrew.

Hearing suspends at 10:29 am The Hearing proper resumed at 10:36am and the following witnesses from the Office of the Governor General (OGG) were admitted: Hearing 8 Witnesses 1. ii.

Mr. Rawcli££e Ziza, Private Secretary Mr. Samson Konari'i, Accounts Officer The witnesses made their presentations before the Committee.

The Committee questioned the witnesses based on evidences presented.

Discussion ensued.
Discussion ensued.

Evidence concluded and witnesses withdrew.

Public Accounts Committee Report: June 2023 47 Hearing suspends for lunch at 10:44 am The Hearing proper Ministry of Commerce, Industries, Labour & Immigration (MCILI)were admitted: resumed at 10:49 am and the following witnesses from the Hearing 9 Witnesses i. ii.

iii.

iv.

Mr. RileyMesepitu, Permanent Secretary Mr. ErickGeorge,PST Mr. Arnold Horesi, CIO Mr. Owen Rove, CIO 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 11:16pm The Hearing proper Ministry of Culture and Tourism (MCT) were admitted: resumed at 11:19 am and the following witnesses from the Hearing 10 Witnesses 1.

Mr. Barney Sivoro, Permanent Secretary 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 11:28am Public Accounts Committee Report: June 2023 48 Day 3/2023 Thursday 25th May, PTC Dining, 09:39 AM 1.

Members Present Hon.

Douglas Ete, MP- Chairman Hon.

John Dean Kuku, MP Hon.

Matthew Wale, MP Hon.

John Maneniaru, MP Hon.

Ethel Vokia, MP 2.

Apologies Hon.

Rick Houenipwela, MP Hon.

Silas Vaqara Tausinga, MP Hon.

Alfred Efona, MP Hon.

Lilly Maefai, MP Hon.


Claudius Tei'if, MP Hon.

Commins Mewa, MP 3.

Secretary Ms. Wendy Ngondoro, Mr. Donaldson Becha, Senior Auditor 4.

Secretariat Mr. Heston Rence, Committee clerk Ms. Salome Pilumate, Committee Secretary Ms. Ivory lruha'a, Committee Secretary Mr. Whitmon Tabiru, Committee Secretary Mr. Richard Ngatulu, Hansard Officer Mr. Pamentha Golo, ICT Officer 5.

Prayer Mr. Heston Rence, 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.

Public Accounts Committee Report: June 2023 49 7.

Inquiry into the 2022 Supplementary Appropriation Bill 2023 (No.2 of 2023) The Hearing proper commenced and the following witnesses from the Ministry of Agriculture and Livestock Development (MALD) were admitted.
Hearing 11 Witnesses i. Mrs. Joy Angi, Deputy Secretary 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 09:48 am The Hearing proper Ministry of Public Service (MPS) were admitted: resumed at 09:50 am and the following witnesses from the Hearing 12 Witnesses i. ii.
Mr. Nego Sisiolo, Permanent Secretary Mr. Financial Controller 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 at 10:46 am 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 10:47 am Public Accounts Committee Report: June 2023 50 List of Documents Tabled during hearing 1.

2.

3.

MoFT - PSF Talking Points - PAC Hearing MoFT - SrG Annual Borrowing Plan FY2023 MFMR - Bina Region Arrangements for Governance (BRAG)- Activity Progress Report 2022 (June to December) & 2023 (Jan to May) List of Other Submission 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.
MoFT - Generic Template2022 SAB 2023 (No.of 2023) MHMS - Generic Template2022 SAB 2023 (No.of 2023) OPMC - Generic Template2022 SAB 2023 (No.of 2023) NT - Generic Template2022 SAB 2023 (No.of 2023) NPO - Generic Template2022 SAB2023 (No.of 2023) MCILI - Generic Template2022 SAB2023 (No.of 2023) MPS - Generic Template2022 SAB 2023 (No.of 2023) MCT - Generic Template2022 SAB2023 (No.of 2023) OAG - Generic Template2022 SAB 2023 (No.of 2023) SIEC - Generic Template2022 SAB2023 (No.of 2023) MFMR - Generic Template2022 SAB 2023 (No.of 2023) MFMR - A brief for PAC into 2022SAB 2023 OGG - Generic Template2022 SAB2023 (No.of 2023) Public Accounts Committee Report: June 2023