Title: Zero Tolerance to Financial Fraud: Australia and Solomon Islands Sign Pact

1st May 2013, Honiara

Enhancing Transparency and Accountability in the Solomon Islands-Australia Partnership for Development

In a significant move towards enhancing transparency and accountability, the Solomon Islands Government and the Australian Agency for International Development (AusAID) have signed a joint statement on zero tolerance to fraud in the Solomon Islands-Australia Partnership for Development. The historic pact was formalized during the annual Partnership for Development talks in Honiara.

Signatories and Commitment

The signatories to the agreement were:

• Hon. Connelly Sandakabatu, Solomon Islands’ Minister for Development Planning and Aid Coordination, and
• Peter Baxter, Director General of AusAID.

Both governments committed to jointly combating fraud within the Australian aid program in Solomon Islands and mandating legal action against those found responsible for fraudulent activities.

Solomon Islands’ Commitment to Upholding Integrity of the Program

Minister Sandakabatu reiterated Solomon Islands’ commitment to upholding the integrity of the program, recognizing Australia’s crucial role as the country’s largest development partner.

“We cannot stress enough the importance of ensuring that Australia’s aid program is utilized effectively, in line with our national development priorities and for the welfare of all Solomon Islanders.” Hon. Connelly Sandakabatu, Solomon Islands’ Minister for Development Planning and Aid Coordination

Reforms to Curb Fraud

To curb fraud, the Solomon Islands Government is set to institute several reforms, including:

1. Amendments to the Public Finance Act
2. Strengthening procurement processes
3. Fortifying internal audit mechanisms within Ministries.

Role of Accountability Agencies

The crucial roles played by the Auditor General and accountability agencies in fostering transparency and accountability across government were also underlined.

Protection of Aid Funds and Optimal Value for Money

Mr. Baxter explained that the zero tolerance approach would protect the aid funds and enable them to reach those who need it most, assisting in their fight against poverty.

“Both governments are dedicated to working together in identifying and prosecuting anyone involved in misusing the Australian aid program funds. This initiative ensures every dollar spent contributes to the well-being of the Solomon Islands people.” Peter Baxter, Director General of AusAID

Consequences of Fraudulent Activities

The consequences of fraudulent activities extend beyond mere financial harm. They negatively impact the poorest members of the community and undermine confidence and credibility within the development partnership between Solomon Islands and Australia.

Australian Collaboration to Strengthen Financial and Audit Systems

Australia remains dedicated to collaborating with the Solomon Islands Government to bolster financial and audit systems, effectively preventing fraudulent activities.

Thorough Investigation, Legal Action and Fund Recovery

The signatories pledged:

1. Thorough and comprehensive investigation of any suspected fraud within the Australian aid program.
2. Legal action against the perpetrators.
3. Timely progress updates from Solomon Islands investigative bodies to AusAID regarding ongoing fraud investigations.
4. Maximum effort in recovering any lost funds due to fraudulent activities.
5. Enhancement of Solomon Islands’ procurement and financial systems to ensure effective disbursement of aid funds and optimal value for money.

Assistance from Australia to Solomon Islands Agencies

Australia also pledged assistance to Solomon Islands agencies in battling corruption.