Finance Minister Rejects Solomon Islands Provident Fund's Investment Proposals

Rini says NPF preformance has not results in positive returns

By Eddie Osifelo 

HONIARA, Solomon Islands (Solomon Star, Dec. 13, 2016) – Minister of Finance and Treasury, Snyder Rini has rejected Solomon Islands National Provident Fund (SINPF) investment proposals.

These projects includes a lending bank, Malaita Telekom House and purchasing 15% shares of Pan Oceanic Bank through selling its shares in South Pacific Oil (SPO).

Rini told Parliament when he winded the debate of the $4.1 billion [US$510 million] budget for 2017 last Friday based on the facts that NPF’s investment in the past did not make good returns.

“I gave the list back to them to do a thorough costing and rate of returns before I give the final approval.

“In the last five to six years, investment of NPF does not make good returns,” he said.

Rini stated that the $387 million [US$48 million] NPF invested in overseas has made negative returns.

Therefore he asked NPF to repatriate their money and pay development bonds of the Government.

Furthermore, Rini said investment in Soltuna, Heritage Park Hotel, Tavanipupu and Marine Sasape does not make any good returns as well.

“That’s why in 2014, because these investments do not make returns, so NPF use $127 million [US$15.8 million] from reserves in paying the members of 15% declared interests.

“In 2015, NPF gives 10% about $98 million [US$12.2 million] from reserves, because investment not making money,” he said.

Moreover, Rini said in 2016, NPF declared 10% interests, where it used $50 million [US$6.2 million] out of reserves.

He said the investment on Auki plaza has resulted in disputes between the province and the clients.

Rini said for the lending bank, NPF had already paid $9.1 million [US$1.1 million] to wrong people.

For the investment in Pan Oceania Bank (POB), Rini asked NPF to seek advice from Central Bank which they don’t do until today.

Solomon Star
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