Gov’t pushing for all money earned from exports to be remitted back to the country

Minister of Finance and Treasury Manasseh Sogavare has admitted that the government has no control over revenue earned by foreign investors including mining as he confirmed that all receipts from exports must now be remitted back into the country.

Sogavare made the statement after he was asked by the Leader of Opposition Matthew Wale on whether there is a mechanism in place to know if the money earned by investors actually comes back into the country? This issue was raised in relation to the $100.8m generated by mining company Pacific Nickels on Isabel.

In response, Sogavare said: “It is a big issue we are facing right now as most of the earnings are received outside by the operators.”

He further admitted that “We don’t have control over it.”

However, Sogavare said they had already brought it to the attention of CBSI and the governor has already issued instructions to all the banks to ensure the revenues returned to the country before they could be remitted back.

Sogavare further confirmed that instructions have been issued all mining companies.

Exchange Control Notice by CBSI

The CBSI has already issued a notice on the issue. It says in pursuant to the powers conferred upon the Central Bank of Solomon Islands (CBSI) under Section 3 of the Exchange Control Act, 1976, and Sections 13 and 21 of the Exchange Con- trol Regulations, 1977, this notice serves to inform all licensed exporters whether operating under General Authoritv or Specific Authority of the mandatory compliance requirements regarding export proceeds as stipulated in the Exchange Control Policy.

Effective immediately, all licensed exporters must adhere to the following terms and conditions to ensure compliance with CBSI’s regulatory framework: All export proceeds from sales of goods leaving Solomon Islands must be received or remitted back to Solomon Islands within ninety (90) days of the date of export.

Exporters operating under the General Authority to export permit must ensure that 100% of exports proceed/ receipts of all export consignment are received within ninety (90) davs (or three months) before or after the date of export.