Government has been urged to withdraw and improve the Special Economic Zone (SEZ) Bill 2024, warning that its gaps pose serious risks to the country’s economy, governance systems, and national development.
The Leader of Opposition Hon. Matthew Wale issued the call when speaking in Parliament on Monday.
He said the policy behind the Bill was a “very good one for our country and economy,” but stressed the need for serious improvements.
“Given where we are in our development trajectory, we need this policy to work and work right. However, given the complex issues interfacing in this key policy initiative, it is important that we get it as right as is possible from the outset,” Hon. Wale said.
While commending the Ministry and Taskforce for their 15 years of work on the policy, the Opposition Leader raised concerns that inadequate modelling, lack of proper data analysis, and absence of consultation with key industries had weakened the Bill’s framework.
“I am extremely disappointed on this point. There was no attempt at modelling by the relevant agencies.
“No attempt to even understand the experiences and lessons from PNG and Fiji who have operated SEZs for quite some time,” Hon. Wale stressed.
Hon. Wale warned that the absence of due diligence and safeguards could open the door to fraud and exploitation.
“Past governments have granted land, exemptions, letters of guarantee, and other incentives to supposed wealthy investors who have turned out to be conmen.
“This is not a small isolated problem, it is a cultural and structural problem for us. We are too easily wowed by those pretending to be wealthy,” Hon. Wale explained.
“Overall, the Bill is weak in ensuring the integrity of investors, operators, promoters, and beneficial owners. This is a significant defect, and will result in pressure on compliance and law enforcement down the line,” Hon. Wale added.
Hon. Wale also criticised the lack of employment thresholds in the Bill, saying it fails to guarantee that investments will lead to job creation for Solomon Islanders.
“The Bill does not tie incentives to the number of jobs created and sustained. There is no minimum employment threshold for any of the incentives. This is a terrible, and tragic, oversight,” Hon. Wale lamented.
The Opposition Leader further warned that Solomon Islands’ weak enforcement systems, combined with outdated laws, made the country vulnerable to transnational criminal exploitation under an SEZ regime.
“Without such a robust legal, compliance and enforcement capacity, Solomon Islands is extremely vulnerable to attracting the wrong type of investor who might be interested only precisely because of our weak legal, compliance and enforcement systems,” Hon. Wale said.
Hon. Wale stressed his support of the Bills and Legislation Committee’s recommendation to withdraw the Bill.
“This is such an important policy initiative, we all want it to start well. But the gaps are significant. Our tendency to fall back on regulations to cure defects or deficiencies in Bills lends regulation making powers to overreach.
“It is better that principal legislation is cured before passage, and regulations are left for ensuring efficient administration.” Hon. Wale concluded.
– Opposition Press
