9 Mar 2004

Solomon Islands Electricity Authority forced to sell its headquarters

11:05 am on 9 March 2004

The Solomon Islands high court has ordered the country's power provider to sell its headquarters in Honiara after the company failed to repay a loan.

The Electricity Authority had been taken to court by the National Provident Fund for failing to repay in excess of one million US dollars which it had made available to import power generators.

The power company had mortgaged its staff houses to secure the NPF loan and the govermment was its guarantor.

But with the collapse of government finances in recent years, the loan could not be repaid.

The NPF is now seeking tenders to buy the two-story premises of the Electricity Authority to recover some of its money.