Political Reviews

The Region in Review: International Issues and Events, 2011 nic maclellan

Melanesia in Review: Issues and Events, 2011 david chappell, jon fraenkel, gordon leua nanau, howard van trease, muridan s widjojo

359 political reviews • melanesia 407 rmol, Rakyat Merdeka Online. aging events and decisions are high- http://www.rakyatmerdekaonline.com/ lighted in this review as well. Political Script Survei Indonesia. developments throughout 2011 again http://scriptintermedia.com/ confirmed the adage that in Solomon Islands politics “anything is possible.” Suara Merdeka (Voice of Freedom). Daily. After the national general elections Jakarta. Online at http://suaramerdeka .com/ and the election of the prime minister in late 2010, the ruling National Suara Pembaruan (Voice of Renewal). Coalition for Rural Advancement Daily. Jakarta. Online at http://www (ncra) and the official Opposition .suarapembaruan.com/ were closely matched in terms of Tabloid Jubi Online: An Alternative membership strength. For instance, Media in Tanah Papua. at one point in February 2011, http://www.tabloidjubi.com/ then-Opposition leader Steve Abana tempo.co. Indonesian weekly magazine. claimed that the two sides were even, http://www.tempo.co/ at 24–24 (sibc, 3 Feb 2011), but there were uncertainties over the real tempo Interaktif. http://www .tempointeraktif.com/ allegiances of some members of Parlia- ment. Prime Minister Danny Philip vivanews.com. http://www.vivanews.com/ and his advisers were very tactful in Voice of America. http://www.voanews maneuvering through this volatile .com/ environment after the 2010 elections. Even as citizens anticipated an imme- West Papua’s People’s National Recon ciliation Team. 2011. Press conference, diate fall of government, new minis- 22 August. ters from the Opposition side of the House were sworn in to replace those who defected. The first sign of a crack in the Philip-led ncra government appeared Solomon Islands when Minister for Forestry Bodo Like the preceding year, 2011 was Dettke was relieved of his portfolio. It politically intense for Solomon Islands, was alleged that Dettke was overseas marred by political instability and when his sacking was announced, and the actions of citizens frustrated over he protested, asserting that he had leadership neglect of pertinent issues. been sacked for ordering the seizure The year’s most dramatic events were of logs from mv Pacific Banghu in related to the ongoing and never- the Western Province a few months ending “musical-chairs politics” of earlier. Despite that assertion, people National Parliament. Moreover, there felt that his initial appointment as was a change in the leadership of minister for forestry had bordered the ruling government. Also notable on a conflict of interest, as he owns were the activities of nongovernment the Success Logging Company (The organizations and civil society groups Age, 1 Sept 2010). Nevertheless his in pursuit of a better life and services ministerial appointment had gone for Solomon Islanders. Some encour- through, along with those of some 408 the contemporary pacific • 24:2 (2012) other newly elected members of Parlia- which was highly controversial and ment of questionable character. These received an immediate rebuttal from included Jimmy Lusibaea, a former the Australian government. This militant who was then facing murder “secret intelligence report” suggested charges; Mark Kemakeza, who has that the Australian Labor Government an unresolved case of abuse of funds was behind moves to topple the ncra for fisheries projects in his constitu- and that their choice for prime minis- ency; and Snyder Rini, the short-lived ter was Opposition member Matthew prime minister ousted by popular riots Wale. It further alleged that Australia in 2006 over corruption allegations. promised a reward of si$200,000 to Their appointments as ministers made each government member of Parlia- the initial formation of ncra some- ment who would cross the floor. what unpopular. Moreover, it claimed that Australia The “musical chairs” in Parlia- had set aside si$20 million in in-kind ment continued into the first half and monetary support to the Opposi- of 2011. While the government and tion for this cause (isn, 8 Feb 2011). Opposition were matched in numeri- The Australian government and the cal strength, Prime Minister Philip coordinator of the Regional Assistance kept the country in suspense and Mission to Solomon Islands (ramsi), delayed the parliamentary sitting until who were both implicated in the March. Meanwhile, the prime minister report, strongly denied the allegations, seemed to have been having difficul- and in Canberra, the Solomon Islands ties in appointing ministers to head high commissioner was summoned to vacant ministries. His special secretary, explain the basis of the report (sto, Andrew Muaki, responded to this and 9 Feb 2011). Wale ultimately sued the delayed sitting by saying that “the Sasako; the court held him partly four vacant ministries have already accountable for the report, and on 24 been filled up by acting ministers” November 2011 he was ordered to (pina, 3 Feb 2011). When six govern- pay si$5,000 in nominal damage plus ment ministers moved to the Opposi- costs to Wale (ssn, 28 Nov 2011). tion, the Philip-led government nearly Security continued to be a national collapsed, but the insecurity was concern throughout the year, espe- rectified by a countermovement of six cially when the government and Opposition members of Parliament to ramsi broached the topic of a transi- the government camp. By April 2011 tional phase for the regional interven- Prime Minister Philip had a majority tion project. Rumors about ramsi’s to rule at least for a little longer. eventual exit have been floating Besides having to live with numeri- around for a number of years, but in cal uncertainty, a string of allega- December 2011, the cabinet endorsed tions of corruption and use of insider a plan that laid the foundations for information did not improve the what will be the gradual drawdown ncra’s negative image. For instance, of ramsi’s presence in the country. there was the so-called Intel Report Tasks regarded as outstanding from by the prime minister’s press secretary the work of ramsi will be redesigned and veteran journalist Alfred Sasako, and channeled through normal Aus- political reviews • melanesia 409

AID and NZAid activities. Ultimately, less, the cabinet has authorized the funding that comes under ramsi Police Response Team to use nonlethal will decrease, since tasks will now be weapons to practice and deal with handled under bilateral arrangements public disorder situations (sibc, 8 (sto, 6 Dec 2011). Earlier in the year, March 2012). a leaked cable revealed the United Constitutional reform efforts and States diplomatic assessment that processes also featured throughout ramsi had failed to establish stability 2011. The Constitutional Congress in the country and had wasted at least and the Eminent Persons Advisory a billion dollars of Australian taxpay- Council, who are responsible for ers’ money. The cable claimed that ensuring that the draft constitution Solomon Islands would relapse into undergoes a thorough consultative turmoil as soon as ramsi left (sto, process, met during the year. Reports 30 Aug 2011). Despite this negative coming from the Prime Minister’s view, many Solomon Islanders have Office indicated that the process for appreciated the efforts of ramsi so far, the draft to reach Parliament is on and there was an air of unease on the schedule. Since the consultations announcement of ramsi’s transition involve a lot of money in the form and ultimate withdrawal. of imprests (ie, advances or loans Another major issue that drew of money), the Ministry of Finance public debate was that of rearming offered a workshop in July to educate the police force. This debate has been provincial and Honiara City Council ongoing since ramsi’s intervention team leaders on the financial pro- began in 2003. Police rearmament is cesses regarding the standing imprest a national security concern because arrangements. This is to ensure that the police force was compromised team leaders properly account for during the Guadalcanal tensions. In money they use to carry out the last 2007, then–Prime Minister Manasseh stages of their constitutional reform Sogavare had to back down from his consultations (isn, 13 July 2011). plans to rearm police because of heavy Choiseul province held its Provincial criticism from trade unions, churches, Convention on the draft constitu- and Australia (sibc, 26 Feb 2011). In tion late in 2011, and the other nine a recent statement after riots on the provinces and Honiara city will do day of his election as prime minister, the same in 2012. It is anticipated that Gordon Darcy Lilo announced that a national convention on the draft rearmament of the police would take constitution will take place in the lat- place but that it would be approached ter part of 2012 before a final draft is cautiously (sto, 16 Jan 2012). Soga- submitted to the cabinet for endorse- vare welcomed the announcement, as ment and to Parliament for a decision it confirmed his earlier attempt, but at the end of 2012. another former member of Parliament, Women in leadership, especially the Peter Boyers, expressed the opinion idea of reserved parliamentary seats that police officers would not be ready for women, also gained prominence in for rearmament for another six to ten 2011. Although an attempt by female years (sto, 13 Jan 2012). Neverthe- candidates in 2010 to gain seats in 410 the contemporary pacific • 24:2 (2012) the national Parliament was unsuc- Dec 2011). Although nothing spe- cessful, women leaders felt that they cial was mentioned about this new learned something from that experi- relationship, the respective countries’ ence. Permanent Secretary for Women, ambassadors to the United Nations Youth, Children and Family Affairs expressed optimism that the rela- Ethel Sigimanu commented that tionship will grow from strength to women should have reached as many strength and evolve for mutual benefit. people as possible in the country who Another diplomatic relationship being understood and supported Temporary explored was that with Russia. Rus- Special Measures (tsm). She argued sia’s recent interest in the small Pacific that “the tsm submission could not Island countries has drawn com- be taken to Cabinet because the voices ment from scholars such as Michael against it were stronger than the O’Keefe, who explained it as “a larger voices for it” (sibc, 23 July 2011). global geopolitical contest being She also complained by raising this played out in the Pacific” (2012, 27). question: “While we pride ourselves Initial talks between Solomon Islands for having a democratic system of and Russia took place in 2011 on the government why has there been only sidelines of the UN General Assembly one woman in parliament since this in New York. The proposal was fur- country gained independence and why ther deliberated in early 2012 in Nadi, so much opposition during the cam- Fiji, by Russian Foreign Minister Ser- paign for ten reserve seats for women gey Lavrov and his Solomon Islands in parliament?” (ssn, 21 March 2011). counterpart, Peter Shanel Agovaka Even National Parliament Speaker Sir (sto, 7 Feb 2012). Unfortunately, Allan Kemakeza observed that women the potential diplomatic relationship were unfairly represented in “Par- came to a halt after Shanel was sacked liament, Cabinet and the Judiciary, for taking it on himself to discuss the and something must be done about possibility of ties with Russia, when it now” (sibc, 29 Sept 2011). Since affiliations with other countries are taking over the helm from Danny the responsibility of the cabinet col- Philip, Prime Minister Gordon Lilo lectively (ssn, 23 Feb 2012). Shanel announced that ten reserved seats will has since been replaced by Clay Forau be allocated for women, who will as minister for foreign affairs and contest these seats during national external trade. elections. He further explained that There were also positive develop- the plan is to allocate “one reserved ments in 2011. In terms of economic seat per province with the seat rotat- development, Solomon Islands pro- ing amongst the province’s constitu- gressed well, albeit slowly. In its quar- encies each election” (sibc, 2 March terly review of June 2010, the Central 2012). Bank of Solomon Islands (cbsi) On the diplomatic front, Solomon anticipated a modest recovery in the Islands made some notable progress economy. According to the Central in the year. First and foremost was Bank, the positive forecast is “attrib- the establishment in December of uted to improvements in the capital diplomatic ties with Nepal (sto, 19 and financial accounts, including the political reviews • melanesia 411 increase in donor and investment from economists and the Opposition. inflows, and a rise in export receipts Former Prime Minister and Finance which contributed to this strong Minister Manasseh Sogavare voiced performance” (cbsi 2010). In late concerns on how this move could 2011, the commercial banks were also affect investment and donor support. commended for lowering their lending He stressed that this dollar apprecia- rates by almost 2 percentage points, tion has direct implications for the allowing local investors to access budget and asked the attorney general cheaper funds for capital. Congratu- to advise on the legal implications lating the commercial banks on that of this sudden change in government move, the cbsi governor emphasized, policy for signed contracts (sto, 15 “It is an indication that the risk profile June 2011). Dr Sunil Kumar, a senior of Solomon Islands, especially the lecturer of economics at the University risk of doing business in the country of the South Pacific, also advised that is improving” (sto, 13 Oct 2011). such a move needs proper guidance The International Monetary Fund from the government. He explained predicted a growth in gross domestic that “apart from negative export if product of 5.6 percent in 2011 and not guided properly, the capital inflow 6.1 percent in 2012, although other into the country could decline which is sources anticipated more sluggish a serious problem as the country needs growth (Pritchard 2012, 69). more capital inflow to improve its Certain developments in the areas infrastructure, which may then dimin- of currency valuation and credit ish investor confidence in the country” facility arrangements also took place (sto, 22 June 2011). during the year. In November, then– Throughout the year, several other Minister for Finance and Treasury decisions were made and arrangements Gordon Darcy Lilo revealed that ncra entered into that could have important had reached an agreement with the implications for people’s livelihoods. International Monetary Fund on a These included the government’s reform program to be supported by a income tax reform, the rehabilitation precautionary Standby Credit Facility. of the cattle industry, and the open- He stated that “the agreement focused ing up of Australia’s Pacific Seasonal on the policy mix that could help the Workers Scheme to complement that Solomon Islands improve its resilience of New Zealand. The new ncra to external shocks and achieve sus- government under the leadership of tainable and inclusive growth in the Prime Minister Lilo announced some medium term” (sibc, 4 Nov 2011). changes to the Pay as You Earn (paye) In another controversial move, the tax in December 2011. Minister for Philip-led government appreciated the Finance Rick Hou announced an Solomon dollar by 5 percent. Accord- increase in the income tax exemption ing to the then–minister for finance, threshold from si$7,800 dollars to the action would alleviate inflationary si$15,080 dollars (ssn, 2 Dec 2011), pressures affecting the rural populace which was implemented in January (sto, 14 June 2011). This govern- 2012. Minister Hou explained the ment move raised a few questions move, stating that “if any tax payer 412 the contemporary pacific • 24:2 (2012) earns $580 dollars per fortnight managed, could assist some Solomon income and below [, his/her] income Islanders in terms of remittances will be exempt from paying Pay As to their families back home. The You Earn (paye) tax” (sto, 2 Dec scheme expects to recruit up to 2011). There were positive reactions 2,500 workers from the participating to this announcement from all sectors countries in a given year (ssn, 14 Dec of the working community. 2011). The cattle industry was a promi- Despite these positive develop- nent industry in Solomon Islands until ments, the year was also marred with the 1998–2003 tensions destroyed the allegations of official corruption and cattle-breeding ground at Tenavatu maladministration by political lead- on Guadalcanal. Earlier attempts to ers. For instance, the awarding of rehabilitate the cattle industry were the contract to construct the PNG hampered by allegations of corrup- chancery building and directives by tion, as a si$10 million grant for that then–Prime Minister Danny Philip purpose was poorly administered for the Solomon Islands Electricity (ssn, 15 March 2010). The current Authority (siea) to be lenient with a regime was successful in its bid to company with outstanding electricity rehabilitate this industry, as in late bills were both controversial. These 2011 the minister for agriculture and decisions tarnished the public image livestock, with the cabinet’s approval, of the Philip-led ncra government. imported 400 head of cattle from In August 2011, Douglas Ete, mem- Vanuatu (sibc, 7 Nov 2011). There ber of Parliament for East Honiara, have also been budgetary allocations revealed that Philip had engaged targeting the improvement of cocoa in “wantokism” (ie, nepotism) by and coconut plantations, which, if directing the chair of the siea Board implemented, could improve income to reconnect the supply of power to and livelihoods in the rural areas. X-field Confectionery Limited, a pri- Although the initiative was outside vate company owned by his close rela- their control, the ncra entered into tive. The company owed something and signed a deal with the Australian like si$2.8 million and Philip prom- government in December 2011 for ised to meet part of that with funding a Pacific Seasonal Workers Scheme. from Taiwan (sto, 17 Aug 2011). The Solomon Islands government A similar story was told about the responded quickly and positively granting of a contract to Transworld to an invitation by the Australian Construction to renovate the prime government to participate. Other minister’s official residence, commonly Pacific Island nations who are already known as the “Red House.” It was in the scheme are Nauru, Sāmoa, alleged that Transworld was given the and Tuvalu. Compared to people contract without a formal bid. This in other countries in Polynesia and was despite the fact that Transworld Micronesia, Solomon Islanders do had messed up the construction of not have access to labor markets the PNG chancery building. On in other metropolitan countries, closer assessment, the owner Johnson and this opportunity, if properly Turueke is a relative of Philip (isn, 21 political reviews • melanesia 413

Oct 2011). These and other decisions deportation of Julian Moti from Solo- made by the then–prime minister and mon Islands was illegal and Moti said his officers were not very helpful in he plans to sue the Solomon Islands easing the pressure on the government government (sto, 12 Dec 2011). In a at a time when number politics was similar fashion, the 2005 government critical. The ultimate losers of course ban imposed on the export of dol- are citizens of Solomon Islands who phins was also found illegal in 2011, do not benefit from better government and the government was required to services. pay the dolphin exporter si$10 mil- Despite a tumultuous year, Prime lion for damages (sto, 17 Jan 2012). Minister Philip managed to hold on The current government will have to until serious allegations regarding sort out these and similar messes this his competency and tendency toward year, as the sacking of ministers and nepotism forced him to resign. Before the crossing of members of Parlia- his resignation, he had fired his ment from the Opposition to the finance minister, Gordon Darcy Lilo, government and vice versa seem to be and Rick Hou, who had been minis- chronic. If the 2011 trend continues in ter for public service. This was after 2012, then little progress will be made another three of his ministers resigned, on the highly publicized programs of citing allegations of abuse of the prime the Lilo-led ncra government. minister’s discretionary funds (ssn, 11 gordon leua nanau November 2011). The sacking of Lilo and Hou was said to be over their part in orchestrating a plan to overthrow References Philip’s leadership, an allegation they both denied (sto, 11 Nov 2011). The Age. Daily newspaper, Melbourne. The resignation of Prime Minister Online at http://www.theage.com.au/ Philip saw the regrouping of ncra and cbsi, Central Bank of Solomon Islands. the subsequent election of Gordon Quarterly reviews. Online at http://www Darcy Lilo as the new prime minister .cbsi.com.sb/index.php?id=106 of Solomon Islands on 16 November ———. 2010. cbsi Press Release 16/2010. 2011. He appointed Rick Hou, a 12 October. http://www.cbsi.com.sb/ former governor of the Central Bank, fileadmin/press_releases/2010-16.pdf as his minister for finance. All other ministerial portfolios were retained isn, Island Sun News. Daily newspaper, Honiara. Online at http://www.islandsun by ministers who had either resigned .com.sb/ under Philip’s reign or had remained with him till his resignation. In effect, O’Keefe, Michael. 2012. A New Era the former captain was allowed to of Geopolitics in the Region. Islands leave while the old crew remained, Business, March: 27–28 with Lilo now at the helm. pina, Pacific Islands News Association. Miscalculated decisions from Daily Internet news service, Suva. previous administrations are now http://www.pina.com.fj/ haunting the ncra. For instance, the Pritchard, Chris. 2012. “Hapi Isles” high court determined that the 2007 Maintain a Fragile Calm. Global: The 414 the contemporary pacific • 24:2 (2012)

International Briefing First Quarter 2012: appeared to have misled Natapei on 68–72. his departure from Vila into believ- sibc, Solomon Islands Broadcasting ing that he could be trusted to defend Corporation. Daily Internet news service, their existing partnership in the face Honiara. http://www.sibconline.com of the ouster motion. Several months later, however, Kilman revealed to the ssn Solomon Star News. Daily news- , press that the turn of events in early paper, Honiara. Online at http://www .solomonstarnews.com/ December had not simply happened out of the blue but was the result of sto, Solomon Times Online. Daily Natapei’s failure to live up to an early Internet news service, Honiara. promise to redistribute ministerial http://www.solomontimes.com/ portfolios within the coalition more equitably. Several letters sent to the prime minister requesting action had been ignored. Kilman was obviously Vanuatu under pressure from his own people The relative political calm during the to act, and Natapei’s intended absence early weeks of 2011 was deceiving, at the moment a vote of no confidence given the controversy surrounding the had been tabled obviously provided change of government that had taken the opportunity to resolve the problem place the previous December (see (vdp, 28 April 2011). The events that Van Trease 2011). Having survived followed would seem to indicate that in office since the last national elec- there had been prior planning, and it tion in September 2008, a period that is therefore understandable that Nata- included several changes to coalition pei and the vp leadership felt betrayed partners, the Vanua‘aku Pati (vp)–led and deceived by Kilman’s final words government under Prime Minister to Natapei on his departure that Edward Natapei was ousted in a vote December morning. Political betrayal of no confidence and replaced by his is not uncommon in Vanuatu politics, deputy, Alliance Group leader Sato but the fact that this had occurred Kilman on the afternoon of 2 Decem- on such a personal level created an ber 2010, shortly after Natapei left the obvious desire for revenge that would country, having received assurances lead to an unprecedented period of from Kilman that the pending no- political instability in the months that confidence motion was under control. followed. That afternoon, however, once Parlia- Rumors began to surface in Janu- ment had convened, the Speaker took ary that moves were afoot to table the unusual step of banning all media a motion of no confidence against and the public from the chamber. At the new Kilman government, but the that point, Kilman and his Alliance Opposition did not have the numbers Group crossed the floor to join the to act, and the Union of Moderate Opposition. The vote of no confidence Parties (ump) dismissed the rumor that was carried with 30 votes in favor, 15 it would be leaving the government against, and 7 abstentions. (vdp, 15 Jan 2011). However, the On first impression, Kilman decision by the Council of Ministers