Controversial SIPA chief pays $10M profit to govt
CONTROVERSIAL Solomon Islands Ports Authority (SIPA) chief executive officer created history yesterday when he paid $10 million in dividends to the government.
This came just eight months after he took on the reins of SIPA and introduced significant and often controversial changes in an effort to turn the organisation around.
“This considerable turnaround of SIPA’s financial health is just the beginning of our aim to transform the organisation into a sustainable enterprise,” SIPA board chairman Nolen Leni stated.
“The reforms undertaken by CEO Colin Yow and his management team have achieved an impressive financial turnaround for SIPA,” he added.
“This will flow on to benefit Solomon Islanders and in spite of incredible odds has resulted in a positive outcome within this short period of eight months,” Mr Leni said.
He said this is the first ever dividend paid to the government by any SOE and also a first ever payment by SIPA.
Mr Leni said:
“This financial result clearly justifies the employment of the Mr Yow, which proves our critics wrong.
“SIPA reported underlying net profit of $41 million for 2015 financial year after expenses including the CEO package.
“The increase in revenue and cost reduction generated $54 million.
“My CEO has more than paid for his reported annual salary of $5 million.
“In eight months, he implemented a strategy that generated revenue and cost saving to pay for his package for the next eight years.
“In short, we now have a CEO for the rest of his term of service for free,” Mr Leni pointed out.
He also said that SIPA has reported for the first time, a profit in excess of $40 million, a 290 percent increase in revenue.
Mr Leni said with the reforms being implemented to improve the Ports infrastructure and new revenue streams in the pipeline, the government can expect more dividends in the future.
Infrastructure Development minister Stanley Sofu received the payment from Mr Yow.
“As the minister responsible, I am privileged to share this achievement with all of you,” he told Mr Yow and board members of SIPA.
“I received this on behalf of the government, and for me this is a golden day,” Mr Sofu said.
He said the government is behind the reform programmes Mr Yow and his management are implementing at SIPA.
By RONALD TOITO’ONA