The Premier of Choiseul province, Jackson Kiloe, says the government is doing harm to State Owned Enterprises, when it handpicks people within its own political circle to board positions.

Premier Kiloe said that a successful State Owned Enterprise requires people with the necessary expertise.

"Sometimes government picks people they see as friends and cronies in the political circle and place them in those boards," said Kiloe. "But I think it is quite important that we understand we are dealing with very technical business which needs people with the skills and background to run those State Owned Enterprises."

Kiloe said that other more successful State Owned Enterprises within the region have sound financial and management policy direction from knowledgeable and professional board of directors and management.

"I think this is a big lesson for our State Owned Enterprises. I think that our government needs to look into that. Whoever you appoint into those boards, they must have technical background, financial background and what not. Otherwise we will continue to run on loss," said Kiloe.