THERE are troubling signs that service delivery by the Malaita province government for the final quarter of this year is likely to be hit hard due to lack of finance.
This is because the four-quarter service grant of $3million to be paid by the national government for Malaita province will be used mainly to recover the illegal borrowings and loans undertaken by the provincial government.
This looming financial obligation is also likely to affect the 200 direct employers of Malaita provincial government most especially with their salaries.
Over the past months the Peter Ramoihia led government has borrowed money from three lenders worth $2.3million.
And its likely once this service grant of $3million is received by the government its likely to repay loans which is expected to be around $2.9million. This amount ($2.9) includes the principal amount borrowed plus the interest.
According to information obtained by this paper, on the 27th July 2016 the provincial government has borrowed SBD$2million from Hon Alick Butala with an interest rate of 20% per quarter.
This means that by October 2016, the province should repay Mr Butala a total amount of $2,400,000.00.
Information sighted by this paper also claimed that that on the 26th of August 2016 the provincial government borrowed a sum of SBD$200,000.00 from Hon Douglas Arui with an interest rate of 20% per fortnight.
This means that in October 2016, the Provincial government should have repaid a total sum of $385,600.
And lately, on the 9th September, the Province further borrowed from Aligegeo School a sum of $100,000.00 with an interest rate of 20% per fortnight.
This means that by October 2016 the provincial government should have paid back a total sum of $120,000.00 to the School.
The total amount that the Malaita provincial government should repay back to the money lenders should total up to $2,928,600.00 ($2.93)
It is estimated once the amount repaid and deducted, Malaita province will be left with only $71,400.00 to run its affairs for final quarter from the $3million service grant.
Reports said, this is a worrying sign for the Direct Employers under the Malaita provincial government as heads of departments in province told this paper that they have failed their service deliveries to the rural areas this year due to lack of financial support from the current government.
Its not clear when the service grant will be paid to the Malaita province government.
Meanwhile the employers last week have supported calls to dissolve the current Provincial Assembly in the wake of the illegal borrowing scandal.
“We have lost every trust we use to have for the Peter Ramohia leadership,” a spokesman for the 200 workers told the Solomon Star in Auki on Friday.
“Their illegal borrowing and action has taken away the trust and confidence we use to hold for the executive,” he added.
“To put an end to this illegal activity and restore trust, we call on the Ministry of Provincial Government to dissolve the assembly.
“We are the ones seriously affected by this financial mess the executive had caused through their illegal borrowing.
“Our salaries are not being paid in time as a result.”
The spokesman, who requested not to be named due to a warning the executive issued against workers last weekend not to pass on any information to the media, said they are also planning to stage a sit-in protest.
“If nothing is done to remove the current leadership, we will stage a sit-in protest to support our call,” he said.
The spokesman said claims the borrowings were done to rescue the province were a “big fat lie”.
“Contrary to what the executive was saying, the borrowing was not for the good of the province but for the selfish interest of the lenders who are charging 20 per cent interest rate on amounts borrowed.
“And as we know, most of the lenders are members of the executive itself.
“So this is an inside job schemed to benefit members of the executive themselves.
“It is corruption to say the least.”
The spokesman also said although tax was deducted from their salaries, these taxes never appeared in the revenue stream of the province.
By BIRIAU WILSON SAENI
In Auki
