political reviews • melanesia 401 between the government and the Tarawa, Republic of Kiribati, 27–30 Solomon Islands Public Employee October. Union, which started in September, ___. 2003. Forum Communiqué. 34th was still unresolved. Public employees Pacific Islands Forum, Auckland, New had requested a pay rise, which was Zealand, 14–16 August. approved by Cabinet, but then turned sibc, Solomon Islands Broadcasting Cor- down by the prime minister. This poration. issued spilled over into 2004. While much of the media coverage sig, Solomon Islands Government. 2003. and commentaries on Solomon 2004 Budget Speech. Honiara: Ministry of Finance. Islands concentrated on the negative impacts of the civil unrest, the events undp, United Nations Development Pro- of the past five years have also had a gram. 2003. Human Development Report positive twist: they have forced 2003. New York: undp. Solomon Islanders to come to terms with the challenges of building a nation-state out of culturally and eth- Vanuatu nically plural societies, and reflect on the social, political, and economic At the beginning of 2003 Vanuatu was challenges for the future. Governor- governed by a coalition of the Vanua- General Sir John Lapli, for instance, ‘aku Party (vp), headed by the prime said that among the “pillars of minister, Edward Natapei, and the national unity and nation building” Union of Moderate Parties (ump), must be “good beneficial reasons for headed by the deputy prime minister, people of diverse and scattered islands Serge Vohor. Politics in Vanuatu were of Solomon Islands to want to belong dominated by events in three main to this country.” The reasons for stay- areas during that year: the manage- ing together, the governor-general ment of the Vanuatu Commodities said, “must be sound, attainable, sus- Marketing Board (vcmb); the man- tainable and tolerated by these diverse agement of the Vanuatu Maritime people” (sibc, 23 Sept 2003). Authority (vma); and the fortunes of Barak Sope, the former prime tarcisius tara kabutaulaka minister who was jailed for forgery in 2002. These events generated References increasing dissatisfaction with the Union of Moderate Parties as a aspi, Australian Strategic Policy Institute. governing party and contributed to 2003. Our Failing Neighbour: Australia another change of national govern- and the Future of Solomon Islands. ment in December 2003. Canberra: aspi Publications. Before considering these events, cbsi, Central Bank of Solomon Islands. three postscripts to the police com- 2003. Annual Report 2002. Honiara: missioner affair, which dominated Central Bank of Solomon Islands. politics in 2002, should be mentioned. pif, Pacific Islands Forum. 2000. Forum To briefly recap, problems arose over Communiqué. 31st Pacific Islands Forum, appointments to the post of police 402 the contemporary pacific • fall 2004 commissioner that were improperly men were manifestly inadequate.” The made. While the first such appoint- Court of Appeal upheld the appeal on ment was challenged peacefully in the grounds that “there can never be court, the second appointment, in any justification for anyone in a free mid-2002, resulted in police arresting and democratic society taking the law that commissioner and fourteen high- into their own hands. After their years ranking officials who were thought of service, training and discipline in to have been involved in the appoint- the Police, each of these men knew ment. In reaction to this, a number that they were bending the rules. of armed Vanuatu Military Force There is nothing more corrosive or officers came to the police station damaging in society than that sort of to arrest these police, and an armed behaviour by police officers” (Public standoff ensued. Rumors that a gov- Prosecutor v Simon 2003). The third ernment-funded militia had also been postscript is that the government formed gave rise to fears of another reportedly made a payment of over armed faction. This militia was 1 million vatu to a “civilian backup thought to be made up of young force” made up of men from Tanna, men from Tanna, a group blamed, which had briefly been formed during justifiably or not, for much violence the instability of August 2002 (VDP, and crime in Vanuatu. By the end of 9 Jan 2003). Whether members of the year, tensions between the Vanu- this group were armed at any point, atu Military Force and the police or still have arms, is not known. force had eased, and four high- The fortunes of Barak Sope in ranking police officers involved in the 2003 are less a postscript on events of arrests of the officials had been given 2002 than the unfolding of another two-year suspended sentences for chapter in this prominent politician’s inciting mutiny, mutiny, kidnapping, career. The leader of the Melanesian and false imprisonment. Progressive Party (mpp) was sen- The first postscript to that story tenced to three years’ imprisonment is the appointment of Robert Diniro for forging government guarantees in Obed as police commissioner in Feb- mid-2002. As the result of this con- ruary 2003. He remained stable in viction Sope lost his seat in Parlia- that position throughout the year. ment. In November 2002 Sope was A large AusAID-funded project aimed pardoned by the president and imme- at strengthening police capacity and diately made known his intention to restructuring the Vanuatu Police Force challenge the loss of his parliamentary has also been implemented and will seat in court. In February 2003 the contribute to stability and increased Supreme Court heard the case and efficiency in the police force. The sec- rejected Sope’s challenge. Although ond postscript involves the four police the court acknowledged that a presi- officers who had been given suspended dential pardon has the effect of mak- sentences for their involvement in ing “the offender a new man,” the events of 2002. The prosecutor wording of the Members of Parlia- appealed their sentences “on the basis ment (Vacation of Seats) Act [Cap that the sentences imposed on the four 174] were taken into account. Under political reviews • melanesia 403 that act, once a member of Parlia- human-interest story: straightforward ment is convicted and sentenced to and easy to understand, something at least two-year imprisonment, his for people to shake their heads at and or her seat becomes vacant after a have a wry chuckle over. vcmb events period of thirty days. Because the dominated in the first half of the year. presidential pardon occurred outside The board is a statutory body that, at of this thirty-day limit, Sope’s seat the beginning of the year, had respon- was vacated before he was pardoned. sibility for the purchase, sale, and A pardon cannot be retroactive, so export of prescribed commodities, the pardon did not restore Sope’s seat particularly copra. As copra is the to him. However, as a result of the primary cash earner for most of the pardon, Sope was allowed to run in rural Vanuatu population, vcmb the by-election for the seat that he operations directly affect many peo- previously held. In May the Court of ple. Problems with vcmb manage- Appeal rejected Sope’s appeal against ment have been going on for some the Supreme Court decision (Sope v time. Improper use of funds, unsound Speaker of Parliament 2003), thereby investments, political interference, and opening the way for a by-election later general mismanagement have been in the year. The by-election was held documented as far back as 1996, in on 27 November. Four candidates one of the first reports by the Vanuatu stood: Sope (mpp), Foster Rakom Ombudsman (Vanuatu Ombudsman (vp), and two independent candi- 1996). vcmb financial problems were dates. Voter turnout was a low 46 compounded in 2001 when the world percent, and Sope was reelected by a price for copra fell. The ump-domi- comfortable margin, winning 2,524 nated government of the time, as a votes, with Rakom, his nearest rival, ploy to ensure popularity and gain polling 1,915 votes. No clear votes in the upcoming election, response to this outcome has come instructed the marketing board to pay from aid donors, investors, or others, higher prices to farmers than they in part, perhaps, because the result could sell the copra for. As a result, was unsurprising. As reported earlier the board was losing about 6,000 vatu in the year, “jailing has increased (us$45) per ton (Reid 2003). By early [Sope’s] popularity among local ni- 2003, vcmb problems became more Vanuatu, who regard him as strong prominent as the local copra market on land issues and Vanuatu national- ground to a halt. vcmb agents were ism” (VDP, 14 Jan 2003). not paying producers, with the result If the reelection of Sope had that the cash basis of rural island occurred in a different year it might economies was being eroded. Inter- have attracted more commentary. island shipping companies were not However, with events concerning being paid, either. In February a notice the Vanuatu Commodities Marketing was filed to table a no-confidence Board and Vanuatu Maritime Author- motion in the government, although ity dominating political news, stories a motion did not arise at this point. of Barak Sope’s return to power This was largely prompted by concern became the political equivalent of a over involvement of the Union of

404 the contemporary pacific • fall 2004

Moderate Parties with the marketing rather than a vcmb account, and board. Also fueling dissatisfaction another story in April alleging that were recently revealed details of a the board had issued copra export 67 million vatu (approximately licenses to two private companies. us$574,000) “redundancy payment” This issuing of licenses was in breach package that had been paid to vcmb of an agreement with shipowners in staff in early 2002, although most of Santo, who had agreed to late pay- them continued to work for the mar- ment of vcmb debts in return for a keting board. This may sound more promise that no licenses in competi- outrageous than it actually is, as the tion with the marketing board would Vanuatu Employment Act [Cap 160] be granted until the debts were repaid. requires employers to pay severance These licenses were particularly con- allowance to terminated employees troversial, as they were issued to com- in many situations. A number of panies with ump politicians as share- employers “spread the load” of pay- holders. In response to the problems, ment by terminating employees and the marketing board was removed paying severance allowance, then from the portfolio of ump Minister reemploying the same employees at for Trade and Industry Jean Alain regular intervals. The “redundancy Mahe. In May, concerns arose over payment” package can, in part, be the appointment of another ump man considered a way of managing sever- (a close relative of ump President ance payments. However, even on Serge Vohor) as vcmb acting general this, most generous reading of vcmb manager. actions, members of staff were paid vcmb problems, combined with about 42 million vatu (approximately low tourist numbers, have created a us$360,000) more than the act pro- shortage of foreign exchange in Vanu- vides for (VDP, 6 Jan 2004). atu. As of April 2003, the Reserve By the end of February some Bank of Vanuatu’s foreign exchange steps were taken to resolve problems, reserves were only sufficient for 4.4 including the suspension of the gen- months of import cover. The low eral manager over mismanagement availability of foreign currency is issues, and proposals to restructure continuing to affect private sector the marketing board as a regulatory businesses that import goods in body. The price of copra paid to pro- early 2004. ducers was also reduced in February, The vcmb situation, combined a move that may have been unpopu- with dissatisfaction over the intro- lar with growers but was necessary duction of a debit tax, contributed to given the marketing board’s financial more talk of a no-confidence motion. position. In April, fifty-eight vcmb A motion was listed for the June ses- agents, who were all political sion of Parliament but was later dis- appointees, were suspended. missed due to technical irregularities. Scandal continued to surround the Changes within political parties also marketing board, however, with a contributed to rumors of a change story in March that 42 million vatu in government. In April, Ham Lini had been paid into a private account replaced Dinh Van Than as president

political reviews • melanesia 405 of the National Union Party (nup). Whilst there have been rumors of One of the barriers to the National political interference and mismanage- Union and Vanua‘aku parties forming ment almost since its establishment, it a coalition had been Than’s nup pres- was not until 2003 that vma opera- idency. With this barrier removed, the tions flared up as a major political possibility of a new coalition looked issue. Attention was focused on Vanu- more likely. Around this time the atu’s maritime industry at the end of Vanua‘aku Party was also facing 2002, with the arrest of Robert Bohn some internal discord, with the by the US government on charges party’s executive proposing a motion relating to a lottery fraud. The US to change three of the prime minis- government froze a number of ter’s political advisors. The results of accounts of companies he was the Luganville municipal election in involved with, including those of the March was also taken as a sign of Vanuatu Maritime Services Ltd (vms), growing discord between the national which administers the Vanuatu Ship- coalition partners, Vanua‘aku Party ping Registry (vsr) on behalf of the and Union of Moderate Parties. In Vanuatu government. Registry fees Luganville, the Vanua‘aku, National are split between Vanuatu Maritime Union, and Unity parties formed a Services and the Vanuatu government. governing coalition following the Charges against Bohn were later election. It was reported in the media dropped. The utilization of vsr that the prime minister ordered vp revenue and the financial relationship members to include the Union of between the Vanuatu Maritime Moderate Parties in the coalition, Authority and the Vanuatu govern- although the prime minister denied it. ment was called into question in However, the national government March when it was reported that the coalition downplayed events in maritime authority had not made a Luganville as being a sign of a split, rescue attempt on a vessel. One vma and performed a ceremony in Port response was that it did not have the Vila to confirm the ump and vp com- funds for a rescue attempt, as all mitment to the national government money from the Vanuatu Shipping coalition. There were other indica- Registry goes through the Ministry of tions that a new vp/nup coalition Finance and Economic Management. was not going to arise, including Such a statement is misleading, as the opposition to the plan by the nup maritime authority has its own bud- Vice President Willie Jimmy (Pacific get, and vsr revenue, just like any Beat, 24 April 2003). government revenue, goes into the The vcmb situation and internal central government coffers and is not party politics were soon overshad- directly kept or necessarily spent by owed by reports of mismanagement the agency that collected it. It did, and corruption within the Vanuatu however, help to confuse relationships Maritime Authority (vma). The and suggest that the government was authority was established in 1998, somehow misappropriating vsr with the primary aim of regulating money. In July, details were published and promoting the maritime industry. from an Auditor General’s report, 406 the contemporary pacific • fall 2004 indicating no financial impropriety on As a result of continued reporting the part of Vanuatu Maritime Services of vma stories in the Vanautu Daily Ltd (PVPO, 7 July 2003). As events of Post, on 4 September the newspaper’s the year unfolded, the concern about publisher, Marc Neil-Jones, was the maritime services agency and the assaulted outside of his office by shipping registry proved to be some- Emelee’s wife and three other people, thing of a red herring, and problems while Emelee and members of his staff clearly became centered in the Vanu- looked on. Afterwards Neil-Jones atu Maritime Authority. required hospital treatment. The next In April, Vanuatu Maritime Com- day in the Magistrate’s Court Emelee’s missioner John Roosen left the mar- lawyer filed for an injunction to pre- itime authority. Then, in June, former vent the Daily Post newspaper from Vanuatu Ombudsman Marie Noelle publishing anything about the Vanu- Patterson was terminated from her atu Maritime Authority or about position as the corporate director. Emelee and his family. A magistrate Patterson and another member of the granted the injunction on 8 Septem- vma board, Lennox Vuti, had been ber, but the Supreme Court over- critical of French citizen Christopher turned it several days later (Jones v Emelee’s appointment as vma chair Emelee 2003). because Emelee is manager of the A concrete example of wrongdoing Tuna Fishing Vanuatu, a clear conflict then arose, in the form of the two of interest. Another vma board mem- long-line fishing vessels that were ber, Wilson Aru, also had his own apprehended by the Vanuatu Police boat and a clear conflict of interest. Maritime Wing for fishing in Vanuatu There was also dissatisfaction about waters without a license. The first raising the board’s sitting allowance boat was apprehended on 1 Novem- to vatu 12,000. ber, and the second on 4 November. In August, vma Acting Commis- These boats, registered in China and sioner Timoci Bani, who had been crewed by Taiwanese, are owned by John Roosen’s counterpart and had Sound Fishing Group, which is in turn been trained for the position, was owned by John Simbolo, a former suspended, and Donald Hosea was director of Customs. Emelee is also appointed in his place. Hosea had reported to have interests in Sound admitted to misappropriating vma Fishing Group. At the time of the money in early 2002 and had been arrests they were displaying licenses placed on probation, and this appoint- permitting them to fish from 7 ment was widely condemned. It was November 2003–6 November 2004. reported that Bani was not allowing In a meeting between police and the himself to be pressured into prevent- director of Fisheries, the latter claimed ing the operation of a ship owned by that there had been an error in the people that Emelee “has a personal license, and it should have run from grudge against,” or into permitting 27 October. However, the case was certain substandard ships (in which referred to the public prosecutor and vma members had personal interests) charges of fishing without a license to sail (VDP, 19 Aug 2003). were laid. On 11 November a letter political reviews • melanesia 407 from the Minister of Agriculture, Public Utilities; Jacques Sese (ump), Stephen Kalsakau, was produced. Minister for Education; Donald This letter, signed 29 October 2003, Kalpokas (vp), Minister for Health; provided a test fishing license allow- Nicholas Brown (vp, Ind), Minister ing the arrested vessels to operate for Ni-Vanuatu Business Develop- from 30 October 2003–6 November ment; Jacklyn Ruben Titek (vp), Min- 2003. Charges were therefore with- ister for Lands, Geology and Mines; drawn. Stephen Kalsakau (ump), Minister for The next twist was a police opera- Agriculture, Livestock, Forestry, and tion to collect evidence of forgery or Fisheries; Joe Natuman (vp), Minister conspiracy to pervert the course of for Internal Affairs; Philip Boedoro justice. Police gained warrants to (vp), Minister for the Comprehensive search a number of places, including Reform Programme; Jean-Alain Mahe the Ministry of Agriculture and Fish- (ump), Minister for Industry and eries, the Vanuatu Maritime Author- Commerce; and Raphael Worwor ity, the office of Tuna Fishing Vanu- (ump); Minister for Youth and Sports. atu, and the office of Sound Fishing Following the reshuffle, the cabinet Group. Christopher Emelee was also is Edward Natapei (vp), Prime Minis- prevented from leaving the country, ter; Ham Lini (nup), Deputy Prime and his passport was seized. Another Minster and Minister for Infrastruc- French citizen, Guy Bernard, who had ture and Public Utilities; Moana been appointed as a vma legal consul- Carcasses (Green Party), Minister tant, also had his passport seized. In for Foreign Affairs; Sela Molisa (vp), February 2004 the Court will rule on Minister for Finance; Donald Kalpo- whether Emelee, Bernard, Kalsakau, kas (vp), Minister for Education; Simbolo, and vma Acting Commis- James Bule (nup), Minister for Health; sioner Less John Napuati have a case Nicholas Brown (vp, Ind), Minister to answer. for Ni-Vanuatu Business Develop- All of the strife surrounding the ment; Jacklyn Ruben Titek (vp), Min- Vanuatu Maritime Authority con- ister for Lands, Geology and Mines; tributed to the change of government Sato Kilman (People’s Progressive on 19 November. Rather than a vote Party), Minister for Agriculture, of no confidence, there was a change Livestock, Forestry and Fisheries; Joe in the coalition and a shuffling of cab- Natuman (vp), Minister for Internal inet portfolios. The National Union Affairs; Philip Boedoro (vp), Minister Party and the Green Party replaced for the Comprehensive Reform Pro- the Union of Moderate Parties in the gramme; Willie Jimmy (nup), Minis- governing coalition (PVPO, 19 Nov ter for Industry and Commerce; and 2003). Prior to the reshuffle, the cabi- Mokin Stephen (nup), Minister for net had been Edward Natapei (vp), Youth Development and Training. Prime Minister; Serge Vohor (ump), It was not only ump involvement Deputy Prime Minister and Minister in the vcmb and vma affairs that led for Foreign Affairs; Sela Molisa (vp), to the change in government. Spokes- Minister for Finance; Willie Posen man for the Vanuatu government (ump), Minister for Infrastructure and Daniel Bangtor noted other reasons,

408 the contemporary pacific • fall 2004 such as a general lack of commit- July 2003. Almost immediately after ment by ump ministers (including the law was enacted, talks of protests not attending meetings), and “the fact against the new law began. In March that the leader of the Union of Mod- 2003 protest took the form of vandal- erate Parties (ump) Mr. Serge Vohor ism on the Reserve Bank of Vanuatu had been initiating negotiations with building and the residence of the the opposition group to form an Minister of Finance. The Vanuatu alternative coalition arrangement” Association of Non-Governmental (Pacific Beat, 26 Nov 2003). ump Organizations (vango) led initiatives interference with the boards of Air for a more peaceful protest, but this Vanuatu and Vanair and the Vanuatu protest was blocked for several Broadcasting and Television Corpora- months by the refusal to issue a per- tion were further reasons for dissatis- mit for the protest. On 22 August the faction with the party. Following the protest finally went ahead and was a change in government, all ump- peaceful and controlled event. By this appointed board members were stage the tax had already commenced. removed from all three of these bod- By the end of the year many people ies. Other occurences since the forma- had accepted the tax as just another tion of the new government include charge on using the bank. the removal of Christopher Emelee Management of the Vanuatu as chair of the vma board; he was National Provident Fund (vnpf) is replaced by Lennox Vuti. The Vanu- another political issue that is of con- atu Commodities Marketing Board cern to the many ni-Vanuatu who (Amendment) Act 2003 also came have money in the fund. The provi- into force, altering the marketing dent fund attracted attention in June board’s role to one of industry with stories that the general manager’s regulation. contract had been extended illegally. The change of government has not This was accompanied by reports of taken place without a fight, however, problems with management, including and since the reshuffle there have been too much investment of funds over- ongoing talks of a vote of no confi- seas and bailouts by government. It dence (PVPO, 21 Nov 2003). The first was soon revealed that stories of mis- motion was lodged just after the management and bailouts by govern- change but withdrawn a week later ment were not correct, and that the (PVPO, 28 Nov 2003). Rumors of a extension of the general manager’s no-confidence motion during the contract was wrong only because of first session of Parliament in 2004 a technicality, and not due to corrup- continue. tion. Soon afterwards, the general This national politicking is of little manager resigned, stating that he had concern to many ni-Vanuatu, for been the subject of black magic. He whom the biggest political story of was also highly critical of Minister of 2003 was the commencement of a Finance Sela Molisa. debit tax. This is a tax on withdrawals A bill to amend the vnpf Act was from banks. The Debit Tax Act was also introduced around this time. passed in 2002 and commenced in This bill would have had the effect of

political reviews • melanesia 409 reducing contributions from 12 per- References cent to 8 percent (currently employees contribute 6 percent of their salary Jones v Emelee [2003] vusc 54. each month and employers contribute a further 6 percent; contributions Pacific Beat. were to be reduced to 4 percent each). The proposed legislation would also Public Prosecutor v Simon [2003] vuca have reduced the amount of the fund 1. permitted to be invested overseas from PVPO, Port Vila Presse Online. 50 percent to 15 percent. This was seen by many as a way to increase political interference in the provident Reid, Robert Keith. 2003. Copra Produc- fund. However, the Minister of ers Wallow in Strife: Political Interference Finance maintained that this move to Be Blamed. Pacific Magazine. May. was proposed due to the need to maintain currency stability, given that Sope v Speaker of Parliament [2003] foreign currency reserves were already vuca 5. very low. The bill was withdrawn for Vanuatu Ombudsman. 1996. Vanuatu the midyear session of Parliament; it Commodities Marketing Board: Utilisa- resurfaced for the November session tion of the VT 1.3 Billion 1986–1987 of Parliament but was again with- Stabex Funds Subsidy. Report 96/03. drawn. In August reports that the VCP, The Vanuatu Daily Post. Port Vila. provident fund was being pressured Five editions per week. into buying long-term government bonds that were not of interest to commercial banks because they were West Papua not a good investment increased con- cern about political interference in the The year 2003 was marked by a pro- provident fund (VDP, 2 Aug 2003). liferation of erratic Jakarta politics Molisa has also been involved in toward Papua and a related reconfir- internal struggles for leadership in the mation of the role of the Indonesian Vanua‘aku Party, and some have National Military Forces (tni) in the questioned his role in government. province. Parts of the military effec- The political events of 2003 have tively induced powerful elements in been turbulent and many are ongoing. the central government to support its For 2004 we can therefore expect to presence in Papua, on the one hand see further developments in these by suggesting that there is a need to areas. However, whether Vanuatu will stem secessionism, and on the other settle into another period of relative hand by conniving at communal con- stability, or whether scandal and flicts. In line with the current policy changing alliances will continue to of the Megawati government, the mil- affect politics, remains to be seen. itary defines its role in Papua as safe- anita jowitt guarding the unity of the nation and its activities there as necessary to pre- vent the “terrorist” acts of indepen-