PGSP

11/08/2026

𝐌𝐏𝐆𝐈𝐒 𝐂𝐨𝐦𝐩𝐥𝐞𝐭𝐞𝐬 𝐂𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐭𝐢𝐨𝐧𝐬 𝐨𝐧 𝐀𝐦𝐞𝐧𝐝𝐦𝐞𝐧𝐭𝐬 𝐭𝐨 𝐭𝐡𝐞 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐢𝐚𝐥 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐀𝐜𝐭

Honiara, 11 August 2026 — The Ministry of Provincial Government and Institutional Strengthening (MPGIS) has successfully completed its second round of consultations on proposed amendments to the Provincial Government Act with the Prime Minister’s Office (PMO) Legislative and Policy Reform Subcommittee.

The consultations were led by the Permanent Secretary of MPGIS and his team and form part of the Government’s broader programme to strengthen legislation, improve governance and enhance the delivery of public services.

The proposed amendments have been in the pipeline for some time. The Permanent Secretary welcomed the outcome of the consultations, noting that the principal Act was enacted in a different context and that significant changes have taken place since then.

He said the proposed amendments are therefore timely and necessary, not only to address gaps and weaknesses identified in the current legislation but also to provide a stronger legal framework for improving the relationship between the National Government and Provincial Executives in the management of provincial affairs.

The Permanent Secretary described the completion of the consultations as an important milestone for the Ministry, particularly as the proposed amendments form part of a number of major reform initiatives being progressed by MPGIS.

“This is the first of a number of major reform items we intend to progress, and I am pleased with the conclusion of these consultations. The discussions have been constructive and will help us move the proposed amendments to the next stage.”

Following the consultations, the Ministry will proceed with the necessary internal processes before submitting the proposed amendments to Cabinet for consideration and endorsement. Subject to Cabinet approval, the amendments will subsequently be transmitted to Parliament for consideration and enactment.

The Permanent Secretary also informed the Legislative Policy Reform Sub-committee that the Revenue Sharing Scheme which is the second major reform initiative of the Ministry is working progress and there will be another presentation of the work done so far to the Committee in the near future.

Member of the PMO Legislative and Policy Reform Subcommittee, legal counsel Ronald Dive, also welcomed the outcome of the consultations.

Mr Dive said the Subcommittee was pleased with the progress made and emphasised the importance of Ministries being prepared to advance their legislative reform priorities.

“We have a list of priority Bills on our agenda, and when Ministries are prepared and ready to progress their reforms, it also helps us to deliver on our mandate.”

The completion of the consultations marks another step in the Government’s ongoing legislative and institutional reform programme aimed at strengthening the legal and governance framework of Solomon Islands and improving cooperation between the National Government and Provincial Governments. ENDS///

10/08/2026

𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐢𝐚𝐥 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭𝐬 𝐢𝐧 𝐒𝐨𝐥𝐨𝐦𝐨𝐧 𝐈𝐬𝐥𝐚𝐧𝐝𝐬 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐞𝐝 𝐛𝐲 𝐍𝐞𝐰 𝐋𝐞𝐠𝐚𝐥 𝐚𝐧𝐝 𝐏𝐨𝐥𝐢𝐜𝐲 𝐂𝐨𝐧𝐬𝐮𝐥𝐭𝐚𝐧𝐜𝐲 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞

HONIARA, SOLOMON ISLANDS, 6th August 2026 – The Ministry of Provincial Government and Institutional Strengthening (MPGIS), in partnership with the United Nations Children’s Educational Fund (UNICEF), has engaged four expert legal consultants to support Solomon Islands' Provincial Governments in developing and formulating effective provincial ordinances. This initiative aims to enhance local governance and service delivery across all nine provinces.

The consultants will provide targeted assistance over three months, working closely with provincial administrations to review, draft, and strengthen ordinances that are legally sound, policy-aligned, and responsive to community needs. The four consultants have been contracted for a period of (average) 100 days each, focusing on their assigned provinces.

Provincial Governments derive their authority to create ordinances from the Constitution and the Provincial Government Act 1997. However, many provinces face challenges with limited legal drafting capacity, outdated laws, and gaps in regulatory frameworks. These issues have hindered effective governance and the delivery of essential services.

Recognizing these challenges, the MPGIS, supported by UNICEF, has prioritized strengthening legislative functions at the provincial level. The consultancy will help provinces identify policy priorities, conduct thorough reviews of existing ordinances, facilitate inclusive stakeholder consultations, and prepare comprehensive policy papers to guide law-making.

Consultants will collaborate with the Attorney-General’s Chambers' Legislative Drafting Division to ensure ordinances comply with constitutional and national legal standards, human rights obligations, and customary law considerations. They will also support provincial governments in presenting proposed ordinances to assemblies for informed decision-making and endorsement.

This initiative is a critical step towards improving regulatory clarity, accountability, and service delivery at the sub-national level. It aligns with Solomon Islands' broader decentralization and public sector reform agendas, aiming to empower local governments to govern more effectively and respond better to the unique needs of their communities.

Permanent Secretary for MPGIS, Dr. Derek Futaiasi stated, “Strengthening the legislative capacity of our provinces is essential for fostering transparent, accountable, and responsive governance. This partnership with UNICEF and the engagement of skilled consultants will help ensure that provincial laws are robust, relevant, and serve the people well.”

With these efforts, Solomon Islands is advancing towards more adaptive and coherent provincial governance frameworks that support sustainable development and community well-being across the nation. ENDS///

Legal Consultants for the formulation of Provincial Ordinances with Ministry officials during their induction. (L-R) Mr. Clifton Ruele Meleu, Mr. John Tebolo, PS for MPGIS Dr. Derek Futaiasi, Mr. David Lidimani, CTA-PGSP/PM-IEDCR Momodou Lamin Sawaneh, Chief Legal Officer for MPGIS David Hiri, and Ms. Haa Hazel Hauirae

10/08/2026

𝐆𝐑𝐄𝐀𝐓 𝐂𝐨𝐚𝐥𝐢𝐭𝐢𝐨𝐧 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐃𝐫𝐢𝐯𝐞𝐬 𝐌𝐚𝐣𝐨𝐫 𝐑𝐞𝐯𝐢𝐞𝐰 𝐨𝐟 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐢𝐚𝐥 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐀𝐜𝐭
𝙈𝙋𝙂𝙄𝙎 𝙨𝙚𝙩 𝙩𝙤 𝙚𝙨𝙩𝙖𝙗𝙡𝙞𝙨𝙝 𝙖 𝙙𝙚𝙙𝙞𝙘𝙖𝙩𝙚𝙙 𝙋𝙂𝘼 𝙍𝙚𝙫𝙞𝙚𝙬 𝙏𝙖𝙨𝙠 𝙁𝙤𝙧𝙘𝙚 𝙩𝙤 𝙤𝙫𝙚𝙧𝙨𝙚𝙚 𝙩𝙝𝙚 𝙚𝙣𝙩𝙞𝙧𝙚 𝙥𝙧𝙤𝙘𝙚𝙨𝙨

HONIARA, SOLOMON ISLANDS, 8TH AUGUST 2026 – The Ministry of Provincial Government and Institutional Strengthening (MPGIS) has reaffirmed the GREAT Coalition Government's commitment to strengthening provincial governance through a landmark review of the Provincial Government Act 1997 (PGA 1997), a critical reform initiative aimed at modernizing the country's provincial government system and improving service delivery to communities across the nation.

Speaking in Parliament last week, Minister for the MPGIS, Hon. Lazarus Rina, said the review lies at the center of the Government's broader reform agenda to strengthen provincial governance, enhance accountability, and equip provincial governments with the tools needed to respond effectively to current and future development challenges.

The Minister noted that the review of the provincial government system has remained largely dormant for many years, limiting the ability of provinces to adapt to changing governance demands and emerging national priorities.

However, under the decisive leadership and political commitment of the GREAT Coalition Government, the review is now moving forward with renewed focus and strategic direction.
"The reform will be guided by a clear and strategic two-stage approach. In the immediate term, transitional amendments to the existing Act will be advanced for Cabinet consideration to address urgent operational gaps and improve functionality within provincial administrations," Hon. Rina said.

He explained that while short-term amendments will deliver immediate improvements, the MPGIS will also undertake a broader and more comprehensive review of the Provincial Government Act (PGA) 1997 to establish a modern legislative and policy framework for provincial governance.

The second phase of the reform will involve an extensive review of legislation, policies, research, governance experiences and international best practices. The process will be designed to ensure that provincial governance arrangements reflect contemporary realities, emerging challenges and the aspirations of provincial governments and communities throughout the Solomon Islands.
"This approach ensures both immediate improvements and long-term transformation, enabling provincial governments to operate with greater clarity, accountability and effectiveness," the Minister stated.

To support the review, MPGIS will establish a dedicated Provincial Government Act Review Task Force to oversee the entire process. The Ministry (MPGIS) is currently seeking a qualified consultant to undertake a comprehensive desk review that will examine the implementation and performance of the PGA 1997 since its enactment.

The review will draw from a broad range of sources, including legislation, government policies, parliamentary and provincial records, academic research, evaluation reports and international best practices in decentralized governance.

The consultant's work will include assessing the origins and legislative intent of the Act, analysing implementation outcomes, identifying recurring challenges and institutional gaps, and comparing the current framework with relevant national, regional and international governance models. The review will also identify reform options and provide evidence-based recommendations to guide the Task Force and inform the development of a new policy framework.

As part of the assignment, the consultant will produce a synthesis report outlining key findings, knowledge gaps and recommendations to support the next phase of reform. The assignment is expected to be completed within 50 working days over a three-month period, with regular reporting to the Task Force Chairperson and Secretariat.

Minister Rinah emphasized that the review represents a significant opportunity to strengthen the foundations of provincial governance and ensure that provincial governments are better positioned to meet the evolving needs of their people.
"This reform marks a significant step toward building stronger, more responsive provincial institutions that are better equipped to deliver services and improve the lives of Solomon Islanders throughout the provinces," he said.

The review of the PGA, 1997, forms part of the GREAT Coalition Government's commitment to promoting effective governance, strengthening institutions and supporting sustainable development at the provincial level. ENDS///

10/08/2026

𝐆𝐮𝐚𝐝𝐚𝐥𝐜𝐚𝐧𝐚𝐥 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐞 𝐭𝐨 𝐏𝐢𝐥𝐨𝐭 𝐋𝐚𝐧𝐝𝐦𝐚𝐫𝐤 𝐌𝐨𝐛𝐢𝐥𝐞 𝐈𝐧𝐢𝐭𝐢𝐚𝐭𝐢𝐯𝐞 𝐭𝐨 𝐃𝐢𝐠𝐢𝐭𝐚𝐥𝐢𝐬𝐞 𝐑𝐞𝐯𝐞𝐧𝐮𝐞 𝐂𝐨𝐥𝐥𝐞𝐜𝐭𝐢𝐨𝐧

HONIARA, SOLOMON ISLANDS – August 8, 2026 — Guadalcanal Province is set to become a national leader in digital governance by piloting a mobile revenue collection system using the M-SELEN platform. On July 22, 2026, the Guadalcanal Provincial Government (GPG) met with technical and development partners to finalise plans for the initiative, which aims to modernize the collection of business licence fees and property taxes.

The strategy directly tackles the high transaction and travel costs that currently burden provincial tax collection, where remote geography often means the cost of physically gathering funds outweighs the revenue itself. By using M-SELEN’s USSD and mobile app channels, taxpayers will soon be able to settle their dues instantly from any location, minimizing cash-handling risks and eliminating long-distance travel.

“Guadalcanal represents the first step in a transformative journey toward modernizing revenue administration across Solomon Islands,” said Momodou Lamin Sawaneh, CTA-PGSP/PM-IEDCR. “The successful implementation of the M-SELEN platform here will demonstrate a proven, scalable model for nationwide adoption. Our vision is to enable every provincial government to strengthen revenue collection, enhance transparency and accountability, reduce administrative costs, and deliver efficient, citizen-centered digital services that support sustainable local development," he added.

The high-level meeting was chaired by GPG Deputy Provincial Secretary Mr. Joseph Sua, alongside the Deputy Provincial Treasurer, Ms. Susie Nama’ahea, Provincial Engineer, Derick Bako, and GP’s Assistant Planning Specialist, Loyd Manuna. They were joined by key technical stakeholders, including the Provincial Governance Strengthening Programme (PGSP) Management Unit, M-SELEN representatives Majdul Haque and Christina Palusi, and Zoe Victoria Tate representing the United Nations Capital Development Fund (UNCDF).

“This pilot positions Guadalcanal Province at the forefront of digital transformation in local governance,” said Mr. Joseph Sua. “By eliminating the logistical challenges associated with physical cash collection, we are establishing a more transparent, efficient, and accountable revenue management system. This initiative will not only improve operational efficiency but also create a more business-friendly environment that supports economic growth and better service delivery for our citizens.”

Key features and benefits of the pilot initiative are:
• Instant Digital Receipts
The platform generates immediate electronic receipts via SMS, ensuring citizens receive proof of payment in real time, even in areas with limited connectivity. Detailed PDF receipts will continue to be available through provincial offices when required.
• Intelligent Revenue Mapping
Leveraging M-SELEN's established merchant and agent network data, Guadalcanal Provincial Government (GPG) will gain enhanced visibility of economic activity across the province, enabling more effective identification, monitoring, and licensing of businesses.
• Business-Friendly Fee Structure
To encourage adoption and minimize financial impact on businesses, provincial authorities may consider a fee structure that is more acceptable to users to make accessibility more convenient.
• Strengthened Governance and Performance Outcomes
The implementation of a digital revenue collection system supports national governance and performance assessment objectives. By pioneering digital revenue mobilization, Guadalcanal Province is demonstrating leadership in public sector innovation while positioning itself to achieve key performance and governance milestones.

The platform is explicitly designed to withstand local challenges, such as power supply volatility and network unreliability. To ensure smooth deployment, field champions from M-SELEN will collaborate with provincial staff on joint training operations and public awareness campaigns across radio, SMS, and social media.

The project team will conduct a comprehensive live system demonstration during the second week of August 2026 to customize reporting workflows and ensure strict compliance with the Provincial Government Act and Financial Management Ordinances (FMO). Following regulatory clearance and fee-model finalization, the pilot will launch for business licence fees before expanding to property taxation and other revenue streams. ENDS///

04/08/2026

𝐏𝐑𝐎𝐕𝐈𝐍𝐂𝐈𝐀𝐋 𝐆𝐎𝐕𝐄𝐑𝐍𝐌𝐄𝐍𝐓𝐒 𝐑𝐄𝐂𝐎𝐑𝐃 𝐒𝐈𝐆𝐍𝐈𝐅𝐈𝐂𝐀𝐍𝐓 𝐏𝐑𝐎𝐆𝐑𝐄𝐒𝐒 𝐈𝐍 𝐀𝐔𝐃𝐈𝐓 𝐏𝐄𝐑𝐅𝐎𝐑𝐌𝐀𝐍𝐂𝐄 𝐀𝐍𝐃 𝐅𝐈𝐍𝐀𝐍𝐂𝐈𝐀𝐋 𝐀𝐂𝐂𝐎𝐔𝐍𝐓𝐀𝐁𝐈𝐋𝐈𝐓𝐘

The latest audit opinions released by the Office of the Auditor General (OAG) for the 2022/23 financial year reveal continued improvement in financial management and accountability across provincial governments, with Central Province and Choiseul Province securing unqualified audit opinions, the highest standard of financial reporting and accountability.

The results reflect more than a decade of sustained reform, capacity building, compliance enforcement, and institutional strengthening led by provincial governments with support from the Ministry of Provincial Government and Institutional Strengthening (MPGIS) and the Provincial Governance Strengthening Programme (PGSP).

𝐔𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝𝐢𝐧𝐠 𝐀𝐮𝐝𝐢𝐭 𝐎𝐩𝐢𝐧𝐢𝐨𝐧𝐬
For members of the public, an audit opinion is an independent assessment by the Auditor General on whether a government's financial statements present a true and fair view of how public funds have been managed.
There are four main types of audit opinions:

1. Unqualified Audit Opinion (Clean Audit Report)
An unqualified opinion is the highest form of audit opinion. It means the financial statements are reliable; complete; comply with accounting standards and legal requirements; and that sufficient evidence was made available to the auditors. This is a strong indicator of sound financial management, transparency, accountability, and effective internal controls.

2. Qualified Audit Opinion
A qualified opinion means the financial statements are generally reliable but contain certain weaknesses, errors, omissions, or compliance issues that are significant but not widespread. While improvement is still required, a qualified opinion indicates that a government has made considerable progress and is operating at a much higher standard than entities receiving disclaimer or adverse opinions.

3. Disclaimer of Opinion
A disclaimer opinion means the auditor was unable to form an opinion because sufficient financial records, evidence, or documentation were not available for examination. This is generally regarded as a serious indication of weaknesses in financial reporting systems, record keeping, and compliance mechanisms.

4. Adverse Audit Opinion
An adverse opinion is issued when the auditor concludes that the financial statements are materially incorrect and do not fairly represent the financial position of the organization. This is the most serious audit outcome and indicates major problems with financial reporting and accountability.

𝐂𝐞𝐧𝐭𝐫𝐚𝐥 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐞 𝐌𝐚𝐢𝐧𝐭𝐚𝐢𝐧𝐬 𝐅𝐢𝐯𝐞 𝐂𝐨𝐧𝐬𝐞𝐜𝐮𝐭𝐢𝐯𝐞 𝐘𝐞𝐚𝐫𝐬 𝐨𝐟 𝐂𝐥𝐞𝐚𝐧 𝐀𝐮𝐝𝐢𝐭 𝐑𝐞𝐩𝐨𝐫𝐭𝐬
Central Province continues to be a national leader in provincial financial management. From 2012/13 to 2016/17, the province consistently received disclaimer audit opinions. However, in 2017/18 it achieved a significant breakthrough by securing its first qualified audit opinion. The following year, 2018/19, the province achieved its first-ever unqualified audit opinion. Since then, Central Province has maintained an unqualified audit opinion for:
• 2018/19; 2019/20; 2020/21; 2021/22; 2022/23

This achievement demonstrates sustained commitment to financial discipline, compliance, and sound governance practices. While the province has already submitted its 2024/25 financial statements on time, the audit opinion for that year is still awaited.

𝐂𝐡𝐨𝐢𝐬𝐞𝐮𝐥 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐞 𝐀𝐜𝐡𝐢𝐞𝐯𝐞𝐬 𝐇𝐢𝐬𝐭𝐨𝐫𝐢𝐜 𝐅𝐢𝐫𝐬𝐭 𝐔𝐧𝐪𝐮𝐚𝐥𝐢𝐟𝐢𝐞𝐝 𝐀𝐮𝐝𝐢𝐭 𝐎𝐩𝐢𝐧𝐢𝐨𝐧
One of the most significant achievements in the 2022/23 audit results is the performance of Choiseul Province. For more than a decade, from 2012 through 2021/22, Choiseul consistently received qualified audit opinions. The 2022/23 audit has now elevated the province to an unqualified audit opinion for the first time in its history.

This milestone reflects years of dedication and determination by provincial leaders and public officers to strengthen accountability systems and financial reporting standards. The achievement demonstrates that continuous improvement and commitment to reform can eventually lead to the highest levels of public sector accountability.

𝐈𝐬𝐚𝐛𝐞𝐥 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐞 𝐄𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞𝐬 𝐚 𝐓𝐞𝐦𝐩𝐨𝐫𝐚𝐫𝐲 𝐒𝐞𝐭𝐛𝐚𝐜𝐤
Isabel Province was the first province in Solomon Islands to achieve an unqualified audit opinion, accomplishing this landmark feat in 2017/18. The province's audit history shows remarkable progress:
• Disclaimer opinions from 2012/13 to 2014/15.
• Qualified opinions in 2015/16 and 2016/17.
• Unqualified opinions from 2017/18; 2018/19; 2019/20; 2020/21 to 2021/22.
• However, the 2022/23 audit opinion declined to qualified status.

While this represents a setback, the province's previous record demonstrates its capacity to achieve and maintain clean audits. Strengthened technical support, compliance enforcement, and management commitment will be important in helping Isabel regain its unqualified status.

𝐖𝐞𝐬𝐭𝐞𝐫𝐧 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐞 𝐃𝐞𝐦𝐨𝐧𝐬𝐭𝐫𝐚𝐭𝐞𝐬 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞
Western Province's audit journey has been marked by both challenges and recovery. The province first graduated from disclaimer status in 2012/13 by securing a qualified opinion and remained qualified in 2013/14. It returned to disclaimer status in 2014/15, regained qualified status in 2015/16, and then received an adverse opinion in 2016/17.

Learning from these experiences, Western Province strengthened its systems and has maintained qualified audit opinions continuously from 2017/18 through to 2022/23. This consistency highlights the positive impact of compliance measures, capacity building initiatives, and institutional strengthening.

𝐓𝐞𝐦𝐨𝐭𝐮 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐞 𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐞𝐬 𝐏𝐨𝐬𝐢𝐭𝐢𝐯𝐞 𝐏𝐫𝐨𝐠𝐫𝐞𝐬𝐬
Temotu Province remained on disclaimer audit opinions from 2012 until 2018/19. A major breakthrough occurred in 2019/20 when the province secured its first qualified audit opinion. Since then, Temotu has successfully maintained qualified status for four consecutive years.

MPGIS and Temotu Provincial Government continue to work together to strengthen internal controls, financial compliance, and reporting systems, with the goal of achieving an unqualified audit opinion in the future.

𝐆𝐮𝐚𝐝𝐚𝐥𝐜𝐚𝐧𝐚𝐥 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐞 𝐑𝐞𝐚𝐜𝐡𝐞𝐬 𝐌𝐚𝐣𝐨𝐫 𝐌𝐢𝐥𝐞𝐬𝐭𝐨𝐧𝐞
Guadalcanal Province recorded one of its most significant achievements by securing a qualified audit opinion for the 2022/23 financial statements. This represents the province's graduation from disclaimer status and signals important improvements in financial management and reporting.

With an increasing number of qualified officers now serving within the province, together with ongoing on-the-job training, mentoring, and technical support provided through PGSP and MPGIS headquarters, Guadalcanal is well positioned to continue improving its audit performance.

𝐑𝐞𝐦𝐚𝐢𝐧𝐢𝐧𝐠 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐢𝐚𝐥 𝐀𝐮𝐝𝐢𝐭 𝐑𝐞𝐩𝐨𝐫𝐭𝐬 𝐀𝐰𝐚𝐢𝐭𝐞𝐝y
The audit reports for 𝙈𝙖𝙡𝙖𝙞𝙩𝙖, 𝙍𝙚𝙣𝙣𝙚𝙡𝙡 𝙖𝙣𝙙 𝘽𝙚𝙡𝙡𝙤𝙣𝙖 (𝙍𝙚𝙣𝙗𝙚𝙡), 𝙖𝙣𝙙 𝙈𝙖𝙠𝙞𝙧𝙖-𝙐𝙡𝙖𝙬𝙖 𝙋𝙧𝙤𝙫𝙞𝙣𝙘𝙚𝙨 for the 2022/23 financial year are yet to be released by the Office of the Auditor General.

Historically, these provinces have received disclaimer audit opinions from 2012 through 2021/22. However, given the improvements occurring across the provincial government system, there is optimism that their audit outcomes may also show positive progress once released. Importantly, these provinces have consistently submitted their annual financial statements to the Office of the Auditor General as required under the Provincial Government Act 1997.

𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐜𝐞 𝐨𝐟 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐀𝐮𝐝𝐢𝐭 𝐎𝐩𝐢𝐧𝐢𝐨𝐧𝐬
Improved audit opinions are more than accounting achievements. They are indicators of stronger governance, greater transparency, and improved stewardship of public resources. When provinces improve their audit opinions, it demonstrates:
• Better management of public funds.
• Improved compliance with laws and regulations.
• Stronger internal control systems.
• More reliable financial reporting.
• Greater public confidence.
• Increased confidence from central government and development partners.
• Most importantly, improved financial accountability strengthens the ability of provincial governments to deliver services and development programs to their communities.

𝐓𝐡𝐞 𝐓𝐫𝐚𝐧𝐬𝐟𝐨𝐫𝐦𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐢𝐚𝐥 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐌𝐚𝐧𝐚𝐠𝐞𝐦𝐞𝐧𝐭
• The progress achieved over the past 15 years is even more remarkable when viewed as the historical challenges facing provincial governments.
• According to findings from earlier assessments, between 1993 and 2007/08 the nine provincial governments produced only two financial statements out of 135 reports required under the Provincial Government Act 1997.
• Although approximately SBD222 million in grants were provided to provinces during that period, only about 14 percent was adequately accounted for before PGSP and PCDF were established by the government in 2008/9.
• For 15 years, provinces struggled to produce credible budgets, annual work plans, procurement systems, investment plans, financial reports, and compliance mechanisms required to manage public resources effectively. As a result, confidence in provincial governments was low, and provinces largely received recurrent grants only because of concerns regarding their ability to manage development funding.

𝐈𝐦𝐩𝐚𝐜𝐭 𝐨𝐟 𝐭𝐡𝐞 𝐏𝐫𝐨𝐯𝐢𝐧𝐜𝐢𝐚𝐥 𝐆𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞 𝐒𝐭𝐫𝐞𝐧𝐠𝐭𝐡𝐞𝐧𝐢𝐧𝐠 𝐏𝐫𝐨𝐠𝐫𝐚𝐦𝐦𝐞 (𝐏𝐆𝐒𝐏)
The introduction of the Provincial Governance Strengthening Programme (PGSP), together with reforms led by MPGIS through Provincial Capacity Development Fund (PCDF) performance-based grant system, (supported by donor partners and SIG) has played a critical role in reversing this trend. Among the key achievements recorded between 2008 and 2025 were:
• Approximately SBD 405 million of PCDF from donor and Solomon Islands Government (SIG) grants have been fully reported and accounted for. Through these funds, more than 1,700 projects have been delivered, creating employment opportunities for over 11,000 young people in the construction industry. Importantly, these funds have circulated within our communities, as every contractor awarded projects under the Provincial Capacity Development Fund (PCDF) has been a local contractor from the Solomon Islands.
• Approximately SBD918 million in recurrent grants transferred to provinces from 2008/9 were fully reported and audited.
• Approximately SBD675 millions of own source revenue collected and accounted by the nine provinces have been reported and audited since PGSP started in 2008/9.
• About 135 financial reports were produced and submitted for audit over a 15-year period.
• All financial statements have been submitted to the OAG on time though improvements are required in terms of quality.
• All provincial governments were audited annually though OAG is a bit behind with audits due to capacity issues at OAG.
• Audit reports were tabled in provincial assemblies in compliance with the Provincial Government Act (PGA) 1997 and the Standing Orders of the provincial governments.
• These outcomes represent a major turnaround from previous decades and demonstrate the effectiveness of sustained institutional support.

𝐂𝐨𝐧𝐭𝐢𝐧𝐮𝐨𝐮𝐬 𝐂𝐚𝐩𝐚𝐜𝐢𝐭𝐲 𝐁𝐮𝐢𝐥𝐝𝐢𝐧𝐠 𝐃𝐫𝐢𝐯𝐢𝐧𝐠 𝐒𝐮𝐜𝐜𝐞𝐬𝐬
The steady improvement in provincial audit performance has not occurred by chance.

It has been supported by continuous capacity building initiatives, technical assistance, compliance monitoring, mentoring, and on-the-job training provided by officers from MPGIS headquarters and the Provincial Governance Strengthening Programme (PGSP). Provincial finance officers, administrative staff, planners, and managers have benefited from practical coaching, hands-on support, strengthened financial systems, and continuous professional development.

These interventions have helped provinces build the technical competence required to prepare financial statements, comply with financial regulations, improve internal controls, and respond effectively to audit findings.

𝐋𝐨𝐨𝐤𝐢𝐧𝐠 𝐅𝐨𝐫𝐰𝐚𝐫𝐝
The 2022/23 audit outcomes demonstrate that provincial governments are continuing to move in the right direction.
The achievements of Central and Choiseul Provinces, the historic progress of Guadalcanal and Temotu Provinces, and the continued improvements across other provinces provide strong evidence that consistent investment in governance reform, institutional strengthening, and human resource development is delivering results.

MPGIS with the support of Solomon Islands Government remains committed to working alongside provincial governments through the Provincial Governance Strengthening Programme (PGSP) and the donor partners of the World Bank and the United Nations Capital Development Fund to ensure all provinces continue progressing toward unqualified audit opinions and stronger public accountability for the benefit of all Solomon Islanders. End///

For more information contact:
1. Dr. Derek Futaiasi, Permanent Secretary of MPGIS and the Chairman of PGSP Steering Committee – Joint Oversight Committee, MPGIS: Ph: 42111
2. The CTA-PGSP/PM-IEDCR, Momodou Lamin Sawaneh
MPGIS, Ph: 42115/42118; 𝙀𝙢𝙖𝙞𝙡: 𝙨𝙢𝙤𝙢𝙤𝙙𝙤𝙪@𝙢𝙥𝙜𝙞𝙨.𝙜𝙤𝙫.𝙨𝙗

𝐀𝐛𝐨𝐮𝐭 𝐏𝐆𝐒𝐏 𝐚𝐧𝐝 𝐏𝐂𝐃𝐅
The Provincial Governance Strengthening Programme (PGSP) is a Solomon Islands Government (SIG) initiative based within the Ministry of Provincial Government and Institutional Strengthening (MPGIS) and supported by development partners. The programme was established to break the vicious cycle of “No Capacity, No Responsibility, No Resources” in which provincial governments had been trapped for decades.

A Public Financial Management Improvement Programme survey, funded by RAMSI and conducted across all provinces, found that awareness of the Provincial Financial Management Ordinances (FMO) was extremely poor. The survey also revealed a lack of commitment to accountability for public funds, low morale and confidence among provincial treasury staff, inadequate supervision from MPGIS at the time, and significant political interference in provincial administrative and financial decision-making.

In response to these challenges, the Solomon Islands Government introduced the Provincial Capacity Development Fund (PCDF), a performance-based grant funding mechanism designed to support and strengthen provincial governments. The PCDF provides an incentive for provinces to deliver services in compliance with their financial regulations, ordinances, and the Provincial Government Act (PGA). Access to funding is linked to meeting a set of minimum conditions and performance measures, thereby promoting accountability, good governance, and improved service delivery at the provincial level.

𝐇𝐮𝐠𝐞 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐦𝐞𝐧𝐭
Today the situation in the provinces has changed for the better, not only as indicated by the significant progress in audit performance and financial accountability but also in governance and service delivery.