Solomon Islands cannot verify value or payment trail for 33 Rennell bauxite shipments

A Solomon Islands bauxite investigation has found that the government cannot independently verify the quality, quantity, value or payment trail for 33 Rennell Island bauxite shipments.

The inquiry has uncovered years of missing, incomplete and unaccounted-for records linked to shipments exported by Asia Pacific Investment Development Ltd and Bintan Mining SI Ltd. Investigators have found gaps in consignment permits, customs files, payment records and approvals that would normally support mineral exports. 

Missing permits and payment records

According to an update from the Attorney General’s Chambers, consignment-permit records for 2019, 2020 and 2021 are either missing or incomplete, despite bauxite exports continuing during that period.

Investigators have located about 11 consignment permits connected to the 33 shipments. However, further permit records remain unaccounted for.

The Central Bank of Solomon Islands has no record of payments by APID or BMSI for the 33 shipments made between 2019 and 2020, according to the investigation. That finding contrasts with correspondence in which the companies told the Ministry of Mines that payments had been made. 

The Attorney General’s Chambers said the unpaid-royalty issue relates to shipments from 2019 to 2020, correcting an earlier allegation that placed the period between 2017 and early 2019. 

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No independent export valuation

Investigators have not located refinery certificates or assay reports for the exports. Without those documents, there is no independent government record verifying the grade, volume or value of the bauxite that left the country.

The inquiry has also been unable to find a memorandum of understanding or supporting government correspondence relating to the shipments. Customs documentation is incomplete, while other relevant records remain missing.

Investigators also found no legal advice or correspondence from the Attorney General’s Chambers from the period relating to the matter. The Ministry responsible for the exports did not obtain, or does not have on file, the general authorities or approvals normally required from the Central Bank of Solomon Islands. 

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Officials face further questioning

The findings raise questions about how consignment permits continued to be issued despite the missing documentation.

“When officers who held office at the time were asked directly, not one could produce documentary evidence or a credible explanation,” the Attorney General’s Chambers said in its update. 

The investigation is continuing, and officials involved in the matter are expected to be questioned.

The inquiry has not established that APID or BMSI committed wrongdoing. Its findings instead identify missing documentation and the absence of independently verifiable records. The companies’ stated position, according to the Attorney General’s update, is that payments had been made.

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