1 May 2013
Zero tolerance to fraud in the Solomon Islands – Australia aid program
Solomon Islands and Australia today signed a joint statement on zero tolerance to fraud in the Solomon Islands – Australia Partnership for Development.
Solomon Islands’ Minister for Development Planning and Aid Coordination, Hon. Connelly Sandakabatu and AusAID Director General Peter Baxter signed the joint statement at the annual Partnership for Development talks in Honiara.
The statement commits both Governments to work together to eliminate fraud from the program, and when fraud is found, to prosecute those persons responsible.
Minister Sandakabatu said the Solomon Islands Government will do all it can to ensure that there is no fraud or misuse of Australia’s aid program.
“Australia is our largest development partner in Solomon Islands and we do not take this assistance for granted. We all have a responsibility to ensure the aid program is used effectively to support the priorities of our National Development Strategy, to the benefit of all Solomon Islanders,” Minister Sandakabatu said.
“The zero tolerance to fraud approach supports our goal to target corruption and develop tactics to ensure that the Government and public services are run fairly and transparently.”
“The Solomon Islands Government is bringing in a range of reforms to prevent and address fraud with Australia’s support. This includes amending the Public Finance Act and strengthening our procurement processes and internal audit within Ministries. The works of the Auditor General and accountability agencies are also important agents in promoting accountability and transparency across Government”.
Mr Baxter said the zero approach to fraud will ensure aid funds get to where they are meant to and help people overcome poverty.
“Both Governments are committed to working together to guard against fraud and bring to account anyone who misuses Australian aid program funds. This ensures that every dollar spent under the Partnership reaches the people who most need it,” Mr Baxter said.
“Any fraud against the aid program is unacceptable. Fraud hurts the poorest members of the community and undermines confidence and effectiveness in our development partnership in Solomon Islands and Australia.”
“We are very encouraged by Mr Sandakabatu’s leadership to take positive action to reduce fraud and corruption within the aid program.”
Mr Baxter said Australia would continue to work with the Solomon Islands Government to enhance financial and audit systems to prevent fraud from occurring.
In signing the statement, both Governments agree that:
• any suspected fraud within the Australian aid program in Solomon Islands will be thoroughly and comprehensively investigated, with perpetrators prosecuted to the full extent of Solomon Islands’ laws;
• Solomon Islands’ investigative bodies will provide progress updates to AusAID on investigations within one month of receiving reports of suspected fraud;
• every effort is accorded by Solomon Islands authorities to recover any funds lost due to fraud or corruption;
• they will improve Solomon Islands procurement and financial systems to ensure that aid funds are disbursed effectively and efficiently, providing the greatest possible value for money towards improving the lives of people in Solomon Islands, including the poorest; and
• Australia will provide assistance to Solomon Islands agencies to fight corruption.