18 Apr 2012

Solomon Islands company says legal action possible over government pay delay

3:20 pm on 18 April 2012

The chairman of the Solomon Islands company Russell Islands Plantation Estate Limited or RIPEL says legal action is possible if the government continues to fail to honour a deal to buy the company's assets.

Last August, the government signed an agreement with RIPEL to buy the former cocoa and copra producer's property for three million US dollars, ending eight years of industrial disputes.

The company's Chairman Patrick Wong says the government failed to settle the payments in September and again last month.

He says another 21 days given for the government to meet the payments expires on Friday.

"If you're asking the question, you use the word penalise, are we going to sue the government? The answer is we need to wait until after Friday and then the board would need to decided or the company would need to decide what is the next course of action."

Patrick Wong from the Solomon Islands company RIPEL.