THE Public Accounts Committee (PAC) made Committee made seven recommendations in the 2017 Supplementary Appropriation Bill 2017 in response to a number of issues highlighted during the inquiry.

Chairman of the PAC and Member of Parliament for Small Malaita, Hon Rick Hou briefly explained each recommendation on the floor of Parliament this week.

According to his statement on the floor of Parliament in his capacity as Chairman of the Standing Select Committee of Parliament that scrutinises financial exercises of the Government, Hon Rick Hou briefly touched on the recommendations as comprehensive details of the report can be accessed through Parliament.

“Recommendation 1 is to deal with the problem of bad planning and poor budgeting. It was noted during the inquiry that the problem of bad planning and poor budgeting emanates from capacity issues at the ministry level in terms of qualified and skilled staff to carry out this important task. The Committee urges that the Ministry must lead the way in ensuring al government ministries comply with the budget process. Additionally the Committee calls on the Ministry of Finance and Treasury (MoFT) to continue relevant training in planning and budget preparations for all accounting officers in all line ministries.

“Recommendation 2 is in relation to government borrowing. The Committee warns against asking for blanket approval of borrowing by Parliament. The Committee feels this is not prudent management practice and may lead to government using loan proceeds for unplanned expenditures. Instead the Committee recommends that Government must provide an indicative list of projects intended for any future government borrowing.

“Recommendation 3 addresses the concern that Investment Corporation of Solomon Islands (ICSI) financial statements remain unaudited. This call is heightened in light of the government plans to buy shares in two private companies through ICSI holding those shares on behalf of the Government. Sir, it is for the Government’s own sake, it is important that the financial status of ICSI is assured before putting more money into it.

“Recommendation 4 is in respect of the current concerns surrounding government cash flow situation. The Committee is unable to establish a complete picture of the situation. As I said before only the Minister has the most accurate picture on this matter. However, from information provided, it can be inferred that the situation is not getting any better. The recommendation is for the MoFT to maintain a benchmark of 2 months payments cover as part of its cash management tool.

“Recommendation 5 is calling on the Royal Solomon Islands Police Force (RSIPF) to urgently commence an investigation into allegations that the Prime Minister had been offered a political donation of $40 Million by Huawei Technologies Co Ltd, the Chinese company that was awarded the contract for the Optic Fibre Undersea Cable project. The Committee considers this is a serious allegation indeed – which could be criminal in nature – against the head of Executive. This is a matter that cannot be brushed aside, or allowed to be swept under the carpet. Doing so does not reflect the strong stance by the Democratic Coalition for Change (DCC) Government, especially the Hon Prime Minister on anti-corruption. Sir, to remain indifferent on it will mean any effort by the Government to fight against corruption is futile.

“Recommendation 6 urges the Ministry of Infrastructure Development (MID) to quickly develop a policy on Plant and Machineries – for road works. The Committee noted that activities in this sector have increased substantially, and there is all the indications this will continue. It is therefore incumbent on the Ministry to design a policy that will cover purchase, ownership, management and registration of plant and machineries obtained under MID programmes.

“Recommendation 7, the Committee is calling on the Ministry of Environment, Climate Change, Disaster Management and Meteorology to step up actions to ensure the Ministry has trained and qualified manpower to address the problem of access to and management of huge fundings under climate change and other environment-related projects and programmes.”