WALE CLARIFIES EXEMPTION TO BEMOBILE

Deputy Opposition Leader, Mathew Wale

By Editor's Desk

Deputy Opposition Leader, Mathew Wale has refuted the implication by the Finance and Treasury Minister, Mr Gordon Darcy Lilo that the granting of duty exemptions to BeMobile when the Member of Parliament for Aoke/Langalanga was Acting Minister for Finance under the previous CNURA Government was a personal decision.

Mr Wale pointed out that the decision was reached in a meeting between the then Prime Minister, then Deputy Prime Minister, then Minister for Finance, then Minister for Planning, the Permanent Secretary of the Ministry of Finance and a Senior Adviser from the Economic Reform Unit in the Ministry of Finance.

He said indeed the new telecommunications company’s application was initially rejected by the Exemption Committee, however after much careful consideration, the senior Ministers and Officials in that meeting concluded with the resolution that the Finance Minister should proceed to approve the exemptions.

“The senior Ministers considered the overall impact of the investment on the country and economy and decided that there was an overwhelmingly strong case for government to support it by way of duty exemptions. Our Telekom was also informed of this decision, as required by the Act.

“Their decision was made in light of the following reasons:
• That the GST would still be payable at the time SBD11-million was payable
• BeMobile would forfeit the first installment of its performance bond.
• BeMobile’s launch programme was being held back by a stockpile of equipment at the wharf and the government wanted to ensure the company can launch as soon as possible and the exemption would assist in that direction
• The BeMobile investment is a $200-million investment that needed government support. In its bid document, the company stated it would not need duty exemptions. However, its application demonstrated it needed some government support.
• The entrance by BeMobile into the telecommunications market has had substantial impact on the cost of telecommunications. This is a substantial positive impact on the economy.
• The BeMobile investment has the potential to touch the lives of many ordinary Solomon Islanders by extending its network of mobile telephone services right to rural villages across the country, adding this is now happening,” Mr Wale said.

The Deputy Opposition Leader said soon after the decision was taken, the then Finance Minister went for medical examination in Australia and the MP for Aoke/Langalanga then became Acting Minister for Finance and implemented it.