PNA Director: Soltai Needs Fresh Capital Now To Surviveff

Source: Solomon Star

A Solomon Islander working overseas wants to see the Soltai issue sorted out for the good of the company and the nation.

Dr. Transform Aqorau who is from the Western Province called on the Premier of the Western Provincial government and his Executive.

He called on the provincial government; “to be reasonable but realistic with respect to the position which they have taken pertaining to the financial restructuring of Soltai. In any case, it is probably a bit too late”.

Dr. Aqorau, who is the director of the Parties to the Nauru Agreement (PNA) a regional tuna organization based in Marshall Islands said that “it is inevitable that Soltai has to be financially restructured, to make it viable and above all profitable.”

“Without injection of fresh capital, the company would become insolvent. It is certainly not in the interest of the Province nor the people of Western Province and Solomon Islands for that to happen”.

Dr Aqorau said both majority shareholders, namely, Investment Corporation for Solomon Islands (ICSI) and Western Province are not in a position to inject fresh capital into the company.

“And that is why I feel sad that the position the Provincial Government has taken is actually quite untenable in the circumstances.”

“It is important to separate whatever prejudices, dislikes, personal ill feelings, and disagreements individuals have and lay everything bare in the board room.”

“After all, this is a multimillion dollar company in a multibillion dollar industry, not some political game.”

“Political gamesmanship and business are diametrically opposed to each other and often have detrimental consequences for companies in which governments and politicians are involved,” Dr Aqorau said.

It is no secret the two shareholders are unable to revitalize Soltai in the circumstances that the Company has found itself in, but that does not mean that there have not been options to help rebuild the company, Mr Aqorau said.

“These have been on the table since 2008. Soltai cannot be financially restructured with words, it needs financial capital, a luxury the Western Provincial Government does not have.

“The Provincial Government would be better off having a profitable, operational company working within the Province than to have none at all, or one in which they do not have a share, but that is an option that they have and will by choice probably end up with,” he said.

The Western Province is be better off having a profitable and viable operation employing 3,000 workers in the Province than a struggling company.

Simply stalling and calling people's names and dragging their characters through the mud as the Premier has done to a highly and internationally respected Solomon Islander is not going to resolve the issue, the PNA director said.

"Much has been said about the company, its history, management etc, but none of these actually relate to the problems that the company has had even under previous ownership and arrangements, and the situation that has to be addressed now.

“We are not talking here about the past, and what the company was like before because if all truth be told, the company really only operated again on a financial subvention from the Government of the Republic of China, and the mortgage it took out with the ANZ bank, but the company should be allowed to get back on its two feet, to be financially viable, and produce and export the canned tuna product Solomon Islands is renowned for,” Mr Aqorau said.

Dr. Aqorau appealed to the intelligence and rationale mindset of the Western Provincial Executive, to actually sit down, have a look at the books and consider the options seriously.

“This cannot be done through the media. It can only be done by meeting and engaging with other stakeholders.”

“This is a business, not a political game. Soltai is simply too important to the people of Solomon Islands for it to be allowed to demise.”

Dr. Aqorau, added that evidence from many places has shown that government owned enterprises have rarely succeeded, more so those that have ventured into fishing.

“Ventures that have actually succeeded are those that develop strategic relationships and partnerships with international companies.”

“This was the case with Maruha/Taiyo Gyogyo which generally provided the marketing and retailing clout for Solomon Taiyo previously,” he said.

Dr. Aqorau said that developing strategic partnerships with international trading partners and companies is the way to go.

“They bring their international connections and also management experience as well” he said.

Dr. Aqorau, also added that the days when foreigners promise development in exchange for access is long over.

“The tuna resources are becoming scarce and what should be done is leveraging access to development, but there must be a commitment to do this which can only be demonstrated through the actual establishment of onshore facilities as a prelude to access.”

“It is well known that fishing companies from the Philippines are looking for access because their traditional fishing grounds are being reduced through measures the Parties to the Nauru Agreement have taken, so they are moving east, but we should do what they have done in PNG, by making sure onshore facilities are actually built first as evidence of their investment aspirations, the PNA director said.”

Solomon Islands tuna resources should be processed in the region whether as loins or canned product and not mortgaged to some processing plants outside the region, he added.

Dr. Aqorau pointed out that governments whether national or provincial should not actually get involved in business; leave that to people who know how to manage businesses better.

“Governments should remain regulators and managers of the resources and create an enabling environment for jobs, and all the other indirect and direct benefits through which they can diversify their narrow tax base.”

“They cannot do both. The perception that governments must be involved in businesses to be seen to be doing something is now long outdated; just look at all the shipping ventures which provincial governments have run, where are they today?”

“I hope that reason will prevail, that this does not send the wrong kind of message to potential investors in the Province and Solomon Islands,” the former Forum Fisheries Agency employee said.