Solomon Islands officials accused of state capture over mineral wealth

The Solomon Islands government is facing intense criticism over the registration of Solomon Islands Mineral Holding Ltd (SIMHL), a company intended to manage the nation’s mineral resources. Transparency Solomon Islands (TSI) has accused the administration of “state capture,” alleging that the company centralizes control of national assets among high-ranking officials.

Records indicate that Prime Minister Mathew Wale holds a 50% share in SIMHL, while Ministers Gordon Darcy Lilo and Derek Manuari each hold 25%. The company’s sole director is the Special Secretary to the Prime Minister, and its subsidiaries are directed by high-level Permanent Secretaries. TSI argues this creates a significant conflict of interest where lawmakers act as shareholders in the industries they regulate, potentially sidelining customary landowners who own 90% of the country's land.

The Parliamentary Opposition has also rejected government explanations regarding the company’s formation. While the government initially cited an “honest administrative mistake” regarding Company Haus records, the Attorney General later stated that SIMHL was deliberately registered in anticipation of upcoming amendments to the Mineral Resources Bill. The Opposition maintains that such a significant undertaking requires proper legal authority, due diligence, and parliamentary scrutiny, which they claim have been bypassed.