Finance Minister hits out at Hou, says gov’t cash flow stable

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Finance Minister Snyder Rini right, and Hon Rick Hou

The Minister of Finance and Treasury, Hon Snyder Rini has lashed out at the statement by Hon Rick Hou in the Solomon Star today (22 March 2017) as misleading and inappropriate.

Hon Snyder Rini in a statement from the Government Communication Unit (GCU) says:

“The government cash position is stable and payment to service providers, suppliers, contractors, scholarships and salaries are being met.”

He says, revenue has been slow in the beginning of the year, but this is normal.

“In addition there were obvious reasons why revenue took this slow start and the Ministry of Finance and Treasury is now taking appropriate actions to make sure that the outlook to mid-2017 improves.

“To fill the current revenue gap, cash brought forward from last year was used.

“This is again normal and is provided for in the 2017 budget,” Mr Rini says.

He says, expenditure, as the case in revenue has also been slow and within prorated budget for the first three months of the year.

“This is normal and consistent with the previous year’s performance.

“While this is attributable to the slow start of activities at the beginning of the year, the strong compliance checks and balances in the Treasury ensures that payment that are non-compliant with rules and regulations are being questioned, and referred to relevant authorities.

“Delays will be experienced and payees affected in these circumstances. The Ministry must however, do this in the interest of protecting public funds and the public financial management system.”

“I therefore, do not see a serious crisis in government finance”, Mr Rini states.

Minister Rini adds that in urgent and unforeseen circumstances the government’s contingency provision under the Contingency Warrant is still intact to provide for the needs of those who may be affected.

The DCCG Government is conscious of its priority programs and will ensure that available resource is managed properly and directed to key programmes and projects that are achievable and contribute significant impact to investment, economic growth and to improving the lives of our people.

  • Watson Cyrus Anikwai

    I think Rick Hou knows what he is talking about here. We truly have cash flow problems Mr. Rini