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Eleven NZ police bound for tense Solomons capital

Friday 3 December 2021 | Written by RNZ | Published in Regional, Solomon Islands

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Eleven NZ police bound for tense Solomons capital
Photo: Supplied/Fijian community, Honiara

Eleven New Zealand police personnel will deploy tomorrow for Solomon Islands in response to major unrest in the capital Honiara.

They are the latest component to join a contingent of regional security forces on high alert in Honiara amid political tensions.

The New Zealand police will be in the country for up to four weeks, following a request by the Solomons government for regional security help.

Their work will be in support or local police and Australian Federal Police with community reassurance and engagement in Honiara following major rioting and looting fanned by protests calling for the removal of Prime Minister Manaseeh Sogavare.

A week on, the local community is still taking stock of three days of rioting by mobs who torched buildings and looted shops, decimating the Chinatown district and the eastern side of the city.

Yesterday, 15 New Zealand Defence Force personnel flew to the Solomons, with about three dozen more going this weekend.

About 200 soldiers and police personnel from Australia, Papua New Guinea and Fiji already deployed to Honiara since last week's devastating rioting.

Regional governments who have sent security forces to Honiara have indicated they don't expect the mission to be more than a month.

While grateful for the regional security help, Solomon Islands govenment MPs are wary of the potential for protestors to stir unrest again, pending the outcome of the impending confidence vote that Sogavare is facing in parliament.

"My fear is the public opinion after what will be transpired after the (confidence) motion on Monday, I don't know what the public reaction will be," Makira MP William Marau said.

"So what will happen after Monday will determine how long the troops will remain in Solomon Islands."

New Zealand Defence Force and Police personnel head to Honiara.
New Zealand Defence Force and Police personnel head to Honiara. Photo: NZ Defence Force

Grim economic news resulting from riots

The Central Bank of Solomon Islands is forecasting a contraction of 0.6 percent in the country's economy as a result of the November riots.

The bank said the extent of the damage is worse than its initial assesments and the cost is now estimated at $US66-million, more than double the initial estimate of $US28-million.

Prior to the destruction in the capital, which saw 63 buildings burnt and looted, the country's economy was forecast to grow by 0.4 percent this year.

Worst hit has been the retail and wholesale sector, which accounted for more than 50 percent of the damage, with $US28-million worth of goods destroyed, further exacerbating an already disrupted supply chain amid the pandemic.

Smoke from fires rise from buildings in Honiara on the Solomon Islands on November 25, 2021, on the second day of rioting that left the capital ablaze and threatened to topple the Pacific nation's government.
Smoke from fires rise from buildings in Honiara on the Solomon Islands on November 25, 2021, on the second day of rioting that left the capital ablaze and threatened to topple the Pacific nation's government. Photo: CHARLEY PIRINGI / AFP)

The bank also expects approximately 1000 people have lost or will be about to lose their jobs as a result of the unrest.

Not yet quantified are the spill-over effects of the riot into other sectors of the economy such as utilities, communication, transport, education, police and other services.

It says the government is expected to lose around 31 percent of its monthly revenue or a net loss of around $US10-million over the next three months.

Higher imports and outward remittances in the coming months are expected with overall imports estimated to increase by $US3.2-million to $US40-million leading to the current account deficit widening by 3 percent of GDP by the end of 2021.

Inflation projected to increase

CBSI earlier forecasted inflation to increase by 3 percent by year-end on the back of high fuel and food prices. The riot-induced impacts will result in inflation rising even further to 3.7 percent at end 2021 as unexpected food and tobacco shortages as well as demand and supply mismatches add to the already elevated price pressures.

Non-Performing-Loans are also expected to rise as a number of businesses affected acquired loans totalling $US5.3 million.

Governor of the Central Bank, Dr Luke Forau, added that the riot further deepened the already weak and sluggish economy. The trajectory the country is moving on has been likened to 'development in reverse'.

New Zealand Defence Force and Police personnel are heading to Honiara, Solomon Islands.
New Zealand Defence Force and Police personnel are heading to Honiara, Solomon Islands. Photo: NZ Defence Force