Thursday, 23 June 2011 10:26 AM

State Owned Entreprises May Experience Change

Finance Minister Gordon Darcy Lilo has acknowledged that the past year or so has been a turning point for key governance provision of the State Owned Enterprises (SOE) Act.

Speaking to members of the Economic Association of Solomon Islands yesterday, Mr Lilo stated that a major step in implementing the 2007 S-O-E Act was the passing of the S-O-E regulations 2010 which detailed how S-O-E board appointments must be done.

He said that future board members are to be chosen for the contribution they can make to ensuring the commercial success of the S-O-E and not for personal or political gains.

He said the country must apply standard international good practices to the process of making S-O-E board appointments.

He cited an Asian Development Bank report which stated that Solomon Islands is leading the way in this part of S-O-E governance resulting in other pacific countries planning to follow.

The finance minister stated that over the past 10 months, Solomon Islands has for the first time no politicians serving in S-O-E boards.

He reiterated that there will be a big change from mistakes that were made in the early stages. Whether these mistakes were made by previous government, the finance minister explained that they have now been identified and fixed.