Transcript
Mackenzie Smith: Locals in Tulagi and Solomon Islands officials were worried this was an unlawful land grab by this company, they felt the Central Province government was handing too much over to the China Sam Enterprise Group. Agreements like this aren't uncommon, but this one was particularly vague, giving the company exclusive development rights for 5 years on this island, and it mentioned potential for investment in mining, oil and gas and trade. But experts pointed to the links between this company and the Chinese state, and one senior Western diplomat told me they were concerned the wording in the agreement was so vague it could be used for strategic assets like a deep sea port, which China has been wanting to build in the Pacific.
Koroi Hawkins: What does attorney-general's statement mean for the deal?
MS: John Muria has declared it null and void, so it's unlikely to be able to go ahead with such a firm line from the government. In particular, he's criticised a clause in the agreement which would allow China Sam to gain development rights without going through the usual process and registering as a foreign investor. He's also said it was improper for his office not to be consulted on before this agreement was signed. But it's worth noting that although the Central Province premier, Stanley Manetiva, signed off on this, he's maintained it wasn't legally binding and no lease would go ahead.
KH: Why did he sign it in the first place then?
MS: Well it was labelled a "strategic cooperation agreement", so the premier's argued it wasn't the same as a lease; he's also said it wasn't finalised and needed further approval from the provincial government. But behind all this, Solomon Islands provinces like Central Province are dealing with a lot of interest from Chinese developers because last month diplomatic relations opened. And earlier this month, when Solomon Islands Prime Minister Manasseh Sogavare visited China for the first time, he actually met with executives from Sam Group and was photographed alongside them.
KH: How have other provinces responded?
MS: No province has struck a deal quite as controversial as Central, but there's certainly interest. One of the deals Mr Sogavare signed on his trip was a cooperation agreement between Guangdong province and all Solomon Islands provinces. But not everyone's on board. Last week, the premier of Malaita province told me his government had agreed to block all concessional loans from China because it was worried they could lead to a debt trap.
