PREMIERS CONFERENCE ENDS WITH SIX RESOLUTIONS
What happened to Premiers’ Resolutions?
The Ministry wishes to clarify, with acknowledgement, the question of what happened to the Premier’s Resolutions, which was raised in one of the social media forums (YUMI TOKTOK FORUM) on March 12, 2024. The questioner referenced the article produced by GCU in June of 2013, and published by Solomon Times Online where the Premiers from all Nine Provinces, including the Honiara City Mayor, took part in the conference from June 17th–21st in the Western Provincial Capital, Gizo. Key speakers on the theme “Resourcing Provincial Government to Develop Vibrant Local Economies” were Permanent Secretaries from various Government Ministries and other invited speakers.
During the conference, the Premiers considered a conceptual framework produced by the Ministry of Provincial Government and Institutional Strengthening and shared their views on the way forward for strengthening Provincial Governments. At the Official Closing Program in Munda, Minister for Provincial Government and Institutional Strengthening Hon. Silas Tausinga acknowledged the Premiers and Government Officials for what he described as a “fruitful conference.” He re-affirmed the National Government’s commitment to ensure resources are distributed fairly to help boost development in the Provinces.
The question, “What happened to Premiers’ Resolutions?” was thus asked, purporting that there have been numerous resolutions made by past Provincial Premiers, yet it appears that little or no action has been taken to implement the resolutions. The questioner raised the question why and then attached the six resolutions. The resolution are:
During the conference, the Premiers considered a conceptual framework produced by the Ministry of Provincial Government and Institutional Strengthening and shared their views on the way forward for strengthening Provincial Governments. At the Official Closing Program in Munda, Minister for Provincial Government and Institutional Strengthening Hon. Silas Tausinga acknowledged the Premiers and Government Officials for what he described as a “fruitful conference.” He re-affirmed the National Government’s commitment to ensure resources are distributed fairly to help boost development in the Provinces.
The question, “What happened to Premiers’ Resolutions?” was thus asked, purporting that there have been numerous resolutions made by past Provincial Premiers, yet it appears that little or no action has been taken to implement the resolutions. The questioner raised the question why and then attached the six resolutions. The resolution are:
1. To institutionalize and seek an increase of the Provincial Capital Development Fund.
Response: The Provincial Capacity Development Fund (PCDF) is established under the legal framework of “targeted balance” (Sections 27–31) of the Public Finance Management (PFM) Act, which was passed by Parliament in September 2013. Here are the key excerpts from the sections.
Section 27: “Targeted balance means budget support financing allocated from the consolidated fund, to a government agency, intended to finance targeted services, programs and projects or preconditioned on certain policies and actions of Government, where the recipient Accountable Officer does not have the discretionary power on how to spend those funds”.
Section 28: The Minister may, by Order establish each targeted balance for targeted budgetary allocations as part of the Consolidated Fund.
Section 29: The Minister may establish a designated government bank account to be known as the targeted balances account.
Section 30: The Minister shall approve any spending of money from the targeted balances account by a general warrant, in accordance with the Appropriation Act for the relevant financial year.
Section 31: The mount of targeted balances that is unexpended at the end of the financial year shall lapse at the end of the financial year.
It ought to be clarified that the PCDF is the funding component of the overarching Provincial Governance Strengthening Programme (PGSP), which is now a division within the MPGIS and integrated into the fiscal SIG transfer system. The PGSP is now also part of the SIG recurrent budget for the MPGIS, coordinated by the Permanent Secretary and Deputy Secretary Operations of MPGIS and supported technically by the Chief Technical Advisor of the PGSP and the Programme Manager for the Integrated Economic Development and Community Resilience (IEDCR). All these developments institutionalize the PGSP and its PCDF within the MPGIS, thus solidifying its operational support for the Nine Provinces in the Solomon Islands.
Since the intervention by PGSP and the introduction of the PCDF in 2008, the SIG contribution to the fund, although not steady, has substantially risen from SBD5.4m per annum from 2008 to 2011 to SBD30 million per annum. The increase even though modest, shows commitment from the SIG to the provincial governments’ role in service delivery.
Before one can draw any judgmental conclusions, we must clarify that the PCDF is an incentive that seeks to improve the province’s governance, and public administration system in order to enhance service delivery and encourage local development, with a primary focus on public expenditure management system and financial management. It is a fund of the PGSP that enables the SIG and donor partners to offer a steady source of revenue for provincial infrastructure delivery. So far, the nine provinces have spent almost SBD320 million delivery 1,549 solid projects creating employment of over 8,000 young Solomon Islanders. About SBD149 million of funds spent went into education and health thanks to PGSP Phase 1 donor partners (RAMSI, EU, UNCDF, UNDP, and SIG).
Current Phase 2 donor partners like the World Bank, EU, UNDP, UNCDF, and UNICEF, as well as sheer willpower and support from the SIG and the provinces themselves, the provinces have now progressed from the initial weak internal controls to some degree of cooperation and compliance.
Positively speaking, the Ministry and the Provinces, through the PGSP, are concentrating on enhancing and expanding the fundamental skills for sound financial management and effective public expenditure control so that all nine provinces can plan and carry out credible budgets in an open and accountable manner. The PGSP, through the PCDF, has improved many aspects in the provinces, particularly the level of service delivery, public financial management, accountability, and good governance.
Today, funds going through all 9 provinces are reported, audited, and accounted for, with at least 2 provinces receiving clean audit reports: Isabel and the Central Provinces (unqualified audit reports) for four years in a row, while Choiseul and Western Province have been receiving qualified audit reports (second best) since 2013.
Temotu Province has, since 2019/20, joined the qualified opinion group. At least, due to persistent enforcement of proper accountability and capacity building by the PGSP, provinces have enhanced their public expenditure management systems, public finance, and reporting. Only four out of nine provinces remain at the disclaimer level. The sustained financial reporting by PGs and clean audit report status of more than half of the Nine Provinces are but an example of the achievements owed to the commitment by the PGSP through the Ministry and the Provinces.
PGSP hopes that by the end of 2027, 80% of the Nine Provinces will have graduated from receiving disclaimers of audit opinions, thus building more confidence in the provinces ability to manage public funds.
Response: The Provincial Capacity Development Fund (PCDF) is established under the legal framework of “targeted balance” (Sections 27–31) of the Public Finance Management (PFM) Act, which was passed by Parliament in September 2013. Here are the key excerpts from the sections.
Section 27: “Targeted balance means budget support financing allocated from the consolidated fund, to a government agency, intended to finance targeted services, programs and projects or preconditioned on certain policies and actions of Government, where the recipient Accountable Officer does not have the discretionary power on how to spend those funds”.
Section 28: The Minister may, by Order establish each targeted balance for targeted budgetary allocations as part of the Consolidated Fund.
Section 29: The Minister may establish a designated government bank account to be known as the targeted balances account.
Section 30: The Minister shall approve any spending of money from the targeted balances account by a general warrant, in accordance with the Appropriation Act for the relevant financial year.
Section 31: The mount of targeted balances that is unexpended at the end of the financial year shall lapse at the end of the financial year.
It ought to be clarified that the PCDF is the funding component of the overarching Provincial Governance Strengthening Programme (PGSP), which is now a division within the MPGIS and integrated into the fiscal SIG transfer system. The PGSP is now also part of the SIG recurrent budget for the MPGIS, coordinated by the Permanent Secretary and Deputy Secretary Operations of MPGIS and supported technically by the Chief Technical Advisor of the PGSP and the Programme Manager for the Integrated Economic Development and Community Resilience (IEDCR). All these developments institutionalize the PGSP and its PCDF within the MPGIS, thus solidifying its operational support for the Nine Provinces in the Solomon Islands.
Since the intervention by PGSP and the introduction of the PCDF in 2008, the SIG contribution to the fund, although not steady, has substantially risen from SBD5.4m per annum from 2008 to 2011 to SBD30 million per annum. The increase even though modest, shows commitment from the SIG to the provincial governments’ role in service delivery.
Before one can draw any judgmental conclusions, we must clarify that the PCDF is an incentive that seeks to improve the province’s governance, and public administration system in order to enhance service delivery and encourage local development, with a primary focus on public expenditure management system and financial management. It is a fund of the PGSP that enables the SIG and donor partners to offer a steady source of revenue for provincial infrastructure delivery. So far, the nine provinces have spent almost SBD320 million delivery 1,549 solid projects creating employment of over 8,000 young Solomon Islanders. About SBD149 million of funds spent went into education and health thanks to PGSP Phase 1 donor partners (RAMSI, EU, UNCDF, UNDP, and SIG).
Current Phase 2 donor partners like the World Bank, EU, UNDP, UNCDF, and UNICEF, as well as sheer willpower and support from the SIG and the provinces themselves, the provinces have now progressed from the initial weak internal controls to some degree of cooperation and compliance.
Positively speaking, the Ministry and the Provinces, through the PGSP, are concentrating on enhancing and expanding the fundamental skills for sound financial management and effective public expenditure control so that all nine provinces can plan and carry out credible budgets in an open and accountable manner. The PGSP, through the PCDF, has improved many aspects in the provinces, particularly the level of service delivery, public financial management, accountability, and good governance.
Today, funds going through all 9 provinces are reported, audited, and accounted for, with at least 2 provinces receiving clean audit reports: Isabel and the Central Provinces (unqualified audit reports) for four years in a row, while Choiseul and Western Province have been receiving qualified audit reports (second best) since 2013.
Temotu Province has, since 2019/20, joined the qualified opinion group. At least, due to persistent enforcement of proper accountability and capacity building by the PGSP, provinces have enhanced their public expenditure management systems, public finance, and reporting. Only four out of nine provinces remain at the disclaimer level. The sustained financial reporting by PGs and clean audit report status of more than half of the Nine Provinces are but an example of the achievements owed to the commitment by the PGSP through the Ministry and the Provinces.
PGSP hopes that by the end of 2027, 80% of the Nine Provinces will have graduated from receiving disclaimers of audit opinions, thus building more confidence in the provinces ability to manage public funds.
2. To facilitate the Human Resource needs of Provincial Governments.
Response: Regarding the human resource needs of the provincial governments, the Ministry supports the provinces’ human resources needs by consulting with the Ministry of Public Service. Consultations resulted in increased seconded officers, improved terms and conditions, and key officer contracts. These changes are being implemented incrementally, aiming to fill all key positions in the provinces within a few years. In addition to the core officers being increased, the MPGIS recruited 54 key officers, mainly nine planning specialists, nine procurement specialists, provincial accounting specialists, provincial engineers, assistant provincial engineers, and provincial capacity development advisors.
Furthermore, there are two minimum conditions relating to the protection of human resources in the provinces. The first deals with ensuring that Core Officers, known as Seconded Officers, such as Provincial Secretary, Deputy Provincial Secretary, Provincial Treasurer, and Deputy Provincial Treasurer for bigger provinces, and Provincial Planning Coordinators are recruited and performing in the province. Some provinces that requested the Ministry recall its seconded officers from the provinces for various reasons do hire their own officers to replace the vacant positions.
However, provinces had to be mindful of the second MC relating to HR in the PGs, which is natural justice. Provinces that hire and fire their officers in contravention of the Natural Justice MC will have their PCDF deducted as a penalty. This was done to safeguard against unfavourable dismissals other than punitive to the provinces.
Response: Regarding the human resource needs of the provincial governments, the Ministry supports the provinces’ human resources needs by consulting with the Ministry of Public Service. Consultations resulted in increased seconded officers, improved terms and conditions, and key officer contracts. These changes are being implemented incrementally, aiming to fill all key positions in the provinces within a few years. In addition to the core officers being increased, the MPGIS recruited 54 key officers, mainly nine planning specialists, nine procurement specialists, provincial accounting specialists, provincial engineers, assistant provincial engineers, and provincial capacity development advisors.
Furthermore, there are two minimum conditions relating to the protection of human resources in the provinces. The first deals with ensuring that Core Officers, known as Seconded Officers, such as Provincial Secretary, Deputy Provincial Secretary, Provincial Treasurer, and Deputy Provincial Treasurer for bigger provinces, and Provincial Planning Coordinators are recruited and performing in the province. Some provinces that requested the Ministry recall its seconded officers from the provinces for various reasons do hire their own officers to replace the vacant positions.
However, provinces had to be mindful of the second MC relating to HR in the PGs, which is natural justice. Provinces that hire and fire their officers in contravention of the Natural Justice MC will have their PCDF deducted as a penalty. This was done to safeguard against unfavourable dismissals other than punitive to the provinces.
3. To provide Machinery and Equipment to the Works Departments of Provincial Government and the Honiara City.
Response: Following the passage of this resolution, the Ministry reviewed the Provincial Capacity Development Funds (PCDF), which allows provinces to procure heavy-duty machinery and equipment for feeder road construction and maintenance. Few provinces like Central have taken advantage of this and procured their own heavy equipment for minor feeder road maintenance and garbage trucks and tractors and excavators.
Response: Following the passage of this resolution, the Ministry reviewed the Provincial Capacity Development Funds (PCDF), which allows provinces to procure heavy-duty machinery and equipment for feeder road construction and maintenance. Few provinces like Central have taken advantage of this and procured their own heavy equipment for minor feeder road maintenance and garbage trucks and tractors and excavators.
4. To align the Provincial and Honiara City Election with National Elections.
Response: This resolution of aligning the Provincial and Honiara City Council Elections with the four-yearly National General Election is happening in the current synchronized national general elections to take place on April 17, 2024.
This has been the result of the submission of the resolution, which the Ministry and the Solomon Islands Electoral Commission have been working committedly to fulfill. It is unavoidable to mention, however, that full synchronization of the elections will be complete when Western and Choiseul Provinces join the rest of the provinces in the 2028 SNGE. These two provinces could not join the upcoming synchronized NGE after their assemblies opted for their desynchronization from the rest since they had different election times in the past, caused by the historical non-alliance of the Western Solomon region with the rest of the Solomon Islands during the gaining of sovereignty and independence. Choiseul was then part of the Western Province.
Response: This resolution of aligning the Provincial and Honiara City Council Elections with the four-yearly National General Election is happening in the current synchronized national general elections to take place on April 17, 2024.
This has been the result of the submission of the resolution, which the Ministry and the Solomon Islands Electoral Commission have been working committedly to fulfill. It is unavoidable to mention, however, that full synchronization of the elections will be complete when Western and Choiseul Provinces join the rest of the provinces in the 2028 SNGE. These two provinces could not join the upcoming synchronized NGE after their assemblies opted for their desynchronization from the rest since they had different election times in the past, caused by the historical non-alliance of the Western Solomon region with the rest of the Solomon Islands during the gaining of sovereignty and independence. Choiseul was then part of the Western Province.
5. To place restrictions on the Selling of Government Land.
Response: On the placing of restrictions on the sale of government land, the Ministry sees that the submission of the resolution aided the triggering of reforms in the administration of government land, such as the formation of the Land Board and the transfer of government land in Makira Ulawa Province (Kira Kira) as a responsive gesture to the Premiers’ resolution. The Ministry looks forward to working with any new government that comes into power after the April 17, 2024, SNGE to continue with the same policy of protecting or transferring government land through internal transfers to its agents, the Provincial Governments.
Response: On the placing of restrictions on the sale of government land, the Ministry sees that the submission of the resolution aided the triggering of reforms in the administration of government land, such as the formation of the Land Board and the transfer of government land in Makira Ulawa Province (Kira Kira) as a responsive gesture to the Premiers’ resolution. The Ministry looks forward to working with any new government that comes into power after the April 17, 2024, SNGE to continue with the same policy of protecting or transferring government land through internal transfers to its agents, the Provincial Governments.
6. Agency Agreements.
Response: On this particular resolution, the Ministry, a first-level executive of the government, has been initiating meetings with key ministries that have non-devolved functions such as health and education (themselves being first-level executives of the government), whose services are being complimented by the provinces, who are agents of the national government. It is still a challenge to orchestrate and synchronize the provision or delivery of services in terms of who provides what, who does what in the provinces, and at what cost. The Ministry keeps striving with the provinces to seek clarity through agency agreements for effective and efficient delivery of services in the provinces. END###
Response: On this particular resolution, the Ministry, a first-level executive of the government, has been initiating meetings with key ministries that have non-devolved functions such as health and education (themselves being first-level executives of the government), whose services are being complimented by the provinces, who are agents of the national government. It is still a challenge to orchestrate and synchronize the provision or delivery of services in terms of who provides what, who does what in the provinces, and at what cost. The Ministry keeps striving with the provinces to seek clarity through agency agreements for effective and efficient delivery of services in the provinces. END###