political reviews • m ela n e s i a 557 Va n uat u throughout Vanuatu since July and is expected to make recommendations The year 2000 was generally stable on decentralization by mid-2001 (VW, for the Vanuatu government, especially 22 July 2000). Land dispute adminis- when compared to the governance tration has long been a problem due situation in neighboring Melanesian to inactive and inappropriate island countries. Somewhat surprisingly per- courts and an appeal structure that haps, given the previous instability in brings customary disputes to the Vanuatu politics and the difficulty of Supreme Court. After two months of successfully operating a coalition consultations in mid-2000, the team government, the five-party coalition responsible for reviewing the land formed at the end of 1999 under the dispute system has recommended the leadership of Barak Sope has rem a i n e d creation of a dispute resolution sys- in power. Various rumors circulated tem that is more appropriate to cus- that a change in parliament would tom than is the current system. Draft occur. These included rumors that legislation has been written, and, if ministerial posts would be reallocated passed, will see the creation of village- in contravention of the coalition level lands tribunals, composed of memorandum of agreement (VW, 22 people who are recognized as being Jan 2000; TP, 14 June 2000), that a knowledgeable about custom (VW, motion of no-confidence action was 28 Dec 2000). to be tabled by the opposition (VW, A third area where review began 7 Oct 2000), and that the Vanua‘aku in 2000 is revenue collection. The Party had offered to form a coalition Revenue Strategy Committee was with the Union of Moderate Parties established in November and will, in and thereby change the government accordance with the Comprehensive (VW, 2 Sept 2000). However, none of Reform Program, primarily consider the rumors amounted to anything and options for widening the tax base no changes to parliament occurred. (VW, 11 Nov 2000). However, this There was some factionalism and revenue review seems to be driven infighting within the major parties, more by concern about Vanuatu’s but none of the wrangling has had tax-haven status than by concern for any significant impact on Vanuatu’s achieving the targets established by political scene. the Comprehensive Reform Program. Although the government was Recent agitation by the Organization largely stable, progress on the Com- for Economic Cooperation and Devel- prehensive Reform Program has been opment (oecd) on unfair competition somewhat erratic. A number of rev i e w from tax havens (a seemingly hypo- boards were established in key areas, critical attack on competition by including decentralization and land countries who usually champion com- administration. The Decentralization petition in the form of free trade) is Review Commission, whose role is to creating considerable pressure on “ensure that the fruit of c r p is shared countries to reconsider their revenue down to the rural areas,” has been bases (p ir, 13 Mar 2000). While actively engaged in consultation Vanuatu’s tax base has not yet been 558 the contemporary pacific • fall 2001 modified in the face of oecd pressure, 2000 by these activities, a number it is a member of a joint Common- of government-created setbacks also wealth and oecd Working Group on occurred. In March parliament passed cross-border tax issues that has been the Leadership Entitlement Act, which set up because of concerns about tax provides the president, the prime min- ha v e n s (Sa m o a Ob s e rv e r , 30 Ja n 2001). ister, and the chair of the National It remains to be seen whether the out- Council of Chiefs a pension of 20 per- comes of the Revenue Strategy Com- cent of their salary when they leave mittee are in any way influenced by office. The fiscal irresponsibility of this international anti-tax-haven pressures. act was opposed, but Prime Minister These anti-tax-haven pressures are Barak Sope justified it on the grou n d s at least in part driven by fears that of needing to reward and honor lead- small open economies such as Vanu- ers for their work. At the time, Sope atu’s may be used for money launder- also stated that in the future parlia- ing. Vanuatu has responded to accusa- ment would amend the act so that it tions that its open economy can be also applied to members of parliament misused for money la u n d e r i n g by pa s s - and the judiciary (VW, 25 Mar 2000). ing the Financial Transactions Report- The Parliament (Members Expenses ing Act, which establishes a Financial and Allowances) Amendment Act was Intelligence Unit. This act req u i r es that also passed during the same session. all suspicious transactions involving This act increased members’ salaries foreign currency be reported to the from 120,000 vatu per month to new Financial Intelligence Unit who 166,000 vatu, backdated to 1 Jan- can then investigate reports or share uary 20 0 0 (TP, 25 Mar 20 0 0 ). information with the relevant authori- The second legislative action to ties (VW, 26 Aug 2000). shake the good governance agenda Other significant acts passed in was the passage of two Private Mem- 2000 include the Nurses Act, which bers Bills introduced into parliament requires the establishment of a Nurses in March by Tanna member and gov- Council to regulate the profession in ernment backbencher Iaris Naunun. Vanuatu; the Judicial Services and The first of these pieces of legislation Co u r ts Act, which is aimed at improv - aimed to amend the Public Service ing standards within Vanuatu’s judi- Act 1998 by deleting provisions that cial system by prescribing minimum prohibit political interference in the qualification standards for justices; operation of the public service. In the Interactive Gaming Act, which particular, the amendment would allows for the establishment of inter- allow for director generals and other net casinos in Vanuatu, an activity public servants to be removed by a that will hopefully generate significant directive of the prime minister. The government revenue; and the Copy- second aimed to amend the Govern- right and Related Rights Act, which ment Act 1998 by removing require- was introduced largely in order to ments that any submission to the meet the standards of the World Council of Ministers involving legal Trade Organization. issues be first approved by the attor- Although good governance reform ney general. Similarly, it removed the was promoted by the government in requirement that the director general political reviews • m ela n e s i a 559 of Finance and Economic Manage- 2000). These incidents resulted in an ment first approve any submission to ombudsman’s report recommending the Council of Ministers involving that Prime Minister Sope remove financial matters (VW, 1 Apr 2000). Reginald from any ministerial posi- These bills were approved by parlia- tions. The report also urged the police ment on 10 April then forwarded to to investigate the complaints and lay the president of Vanuatu, Father John charges as required (TP, 14 Oct 2000). Bani, for ratification. With doubts Although no criminal charges have about the constitutionality of the bills, been laid against him because of these Father Bani refused to sign them and actions, Reginald resigned as deputy instead referred them to the Supreme prime minister at the end of August Court (VW, 13 May 2000). The and was replaced by James Bule (TP, alleged unconstitutionality of the bills 30 Aug 2000). stemmed from article 60(4) of the Ghosh’s appointment as honorary Constitution, which reads “The [Pub- consul for Vanuatu in Thailand lic Service] Commission shall not be occurred in April, soon after he had subject to the direction or control of given 10 million vatu to Vanuatu for any other person or body in the exer- disaster relief. He was also awarded cise of its functions.” In August, Act- ho n o r a r y citizenship, as one must hold ing Chief Justice Lunabeck ruled that citizenship in order to be a consul for giving the prime minister the right to Vanuatu (VW, 8 Apr 2000). The oppo- fire public servants by issue of direc- sition objected to this action, feeling tives was in breach of that article. The that Ghosh had bought himself a remaining content of both bills was diplomatic passport. Both Leader of ruled constitutional, and both have the Opposition Edward Natapei and now been promulgated (TP, 2 Sept Deputy Leader of the Opposition 2000). Willie Jimmy expressed concern that Other notable incidents that nega- the actions of the government would tively affected the government’s repu- create an environment whereby peo- tation include misbehavior by then ple could “buy” the government. This Deputy Prime Minister Stanley Regi- concern arose out of Ghosh’s steadily nald, and the appointment of Amaren - expanding business interests in Vanu- dra Nand Ghosh as Vanuatu’s hon- atu, including an offshore bank, and orary consul to Thailand. Reginald’s from his allegedly close friendship drunken behavior attracted media with Dinh van Than, president of the attention twice in 2000. In March he National United Party (VW, 29 Apr assaulted two people and punched his 2000). The government, however, hand through a glass door in a bar in denied that Ghosh’s appointment was Port Vila (TP, 1 Apr 2000). The sec- a political decision, stating that “Van- ond incident, in Luganville, involved uatu, as a member of the Common- threats to security guards and man- wealth, should have consulates in agement when Reginald was asked to other member countries” (VW, 8 Apr leave a club at closing time.