31 Aug 2006

Taiwan restates Solomons aid is transparent

1:37 pm on 31 August 2006

Taiwan is re-iterating statements that its aid to Solomon Islands is transparent and accountable.

This follows reports that changes are being made to the way the government operates its Rural Communities Development Fund, the RCDF.

The P.M.'s political adviser, Sam Alasia, says MPs will be required to account for the money which will be audited and RCDF funds are no longer being kept at the prime minister's office unlike the previous administration which had a discretionary fund set up.

The suggestion that there was something murky about the way the RCDF was operated have upset the fund's largest contributor, Taiwan.

The acting ambassador in Honiara, Ken Lai, says their assistance is accountable.

"Always our assistance is transparent in the way that the money is sent from our bank in New York to the Central Bank in Solomon Islands so there's no problem about that. Now, it was presented to the prime minister because that's the way to advise the government that the money has been sent to your government."

Ken Lai.

The Central Bank governor, Rick Hou, has confirmed that RCDF funds are processed through the Central Bank but he says it also true that the prime minister's office did have a discretionary fund.

Mr Hou is not linking the discretionary fund with the RCDF.