Fossil fuel giant Santos has rejected allegations it plucked arbitrary figures out of thin air to support claims it could reach net-zero emissions by 2040, a court has been told.
The oil and gas exploration company has been accused of misleading and deceptive conduct by advocacy group Australasian Centre for Corporate Responsibility in Federal Court proceedings launched in August 2021.
As a 13-day trial began on Monday, Santos’ barrister Neil Young KC denied claims of “greenwashing,” saying his client had merely set out targets and had not promised any achievements.
“They are all targets, they’re not promises or predictions to achieve those outcomes,” he told Justice Brigitte Markovic.
Santos made no promises or predictions about greenhouse gas emissions, its barrister said. (Mick Tsikas/AAP PHOTOS)
Announcements that the firm could reduce emissions by 26 to 30 per cent by 2030 and reach net-zero by 2040 did not have to be accompanied by ready-made projects or detailed modelling, Mr Young said.
“Some of the elements depended totally on the development of a market that did not currently exist and that could not be modelled in the way contended for by ACCR,” he argued.
Santos had never argued that natural gas was carbon-neutral but rather that it was an important transition fuel as the country moved towards net-zero, Mr Young said.
He argued that the firm had also flagged the use of carbon capture technology to remove carbon dioxide emitted during the production of “clean” hydrogen fuel but only if that was accompanied by carbon credits.
Earlier on Monday, barrister Noel Hutley SC made arguments for the advocacy group, claiming that Santos lacked reasonable grounds for making its statements.
Santos’s climate change “plan” was not a plan at all, he told the court.
“It was little more than a series of speculations … cobbled together in a matter of weeks.”
Kevin Gallagher told investors Santos had a “doable plan” to reach its climate targets. (Matt Turner/AAP PHOTOS)
The centre holds shares in firms like Santos to try to force them to meet the goals of the Paris Climate Agreement, an international treaty on climate change that was signed by various nations in 2016.
The mining giant’s chief executive Kevin Gallagher told a December 2020 investor briefing his company had a “doable plan” to reach its climate targets, Mr Hutley said.
“I think we’re now at a point where we can talk confidently about realistic roadmaps, real activities and a plan to achieve net-zero by 2040,” the company boss said at the time.
This was all pitched with certainty and not as mere aspirations, Mr Hutley said.
The firm claimed it could completely reduce its emissions through the use of carbon capture technology and blue hydrogen production, with a minimal reliance on offsets, he said.
Blue hydrogen is created from natural gas but uses carbon capture to remove the related emissions from the atmosphere.
Santos forecasts failed to include carbon dioxide produced in the manufacturing of this hydrogen and the fact that it was impossible to completely capture all emissions produced, Mr Hutley said.
The firm’s claims it could rely on carbon offsets to meet its goals would “make a total farce” of the touted roadmap, he added.
Calculations of estimated emissions and barrels of oil and gas produced out to 2040 were “wholly arbitrary”, Mr Hutley said.
“Those figures get locked in because of Mr Gallagher’s directions,” he said.
“The basis for them is wholly unexplained.”
Santos allegedly made the misleading statements at the December 2020 investor day and in its 2020 annual report and climate change report, both published in February 2021.
The advocacy group is seeking injunctions forcing the firm to issue a corrective notice about the environmental impacts of its operations.
It is not seeking damages or compensation, saying it had filed the lawsuit to vindicate the public interest in ensuring corporate climate change commitments are reasonably based.
THE Pacific Islands Forum or PIF leaders meeting this week in Nukualofa, Tonga will discuss key issues on climate change and forest conservation.
Before departing Port Moresby on Sunday (25 August 2024), Prime Minister James Marape said “Pacific Island countries will continue our advocacy on the impact of climate change at established countries who are big carbon emitters to ensure climate change relief funds are made available to Small Island State for climate mitigation.”
He said, “Papua New Guinea is not a Small Island State. We are a big nation but we also have small island communities amongst us who face these climate changes.”
The PIF summit will also grace the presence of United Nations Secretary General, Mr Antonia Guterres.
PM Marape and UN Secretary-General, Antonio Guterres at PIF leaders meeting in Tonga.
PM Marape said Mr Guterres has requested specifically for Papua New Guinea to have a bilateral meeting with him.
Both leaders will discuss the progress of the Bougainville Peace Agreement; what is happening in Bougainville and PNG’s views on Forestry.
On the issue of West Papua’s ongoing struggle for independence, Prime Minister Marape said it is within the sovereignty of Indonesia to address issues relating to West Papua.
PM Marape met with Indonesian President Elect Prabowo Subianto in Port Moresby before departing for Nukualofa.
Prior to departure PM Marape was asked whether West Papua will be discussed openly at the summit, he responded saying just as PNG would not want its neighboring countries talking about sovereignty issues within its borders, Indonesia would not want its neighbors talking about West Papua and its sovereignty.
However, Mr Marape said all other areas of its relationship with Indonesia such as economy will be open for discussion. Indonesia’s incoming president indicated preservation and greater respect to indigenous views on customs, culture, land rights and indigenous heritages. But his visit was tainted when Indonesian Embassy officials banned Journalist and Benar News correspondent, Harlyne Joku from covering a joint press conference of both leaders.
The PNG Media Council condemned the action of Indonesian Embassy officials saying it was also shameful that PNG Government officials allowed this to happen to a PNG Journalist.
Over in Tonga, Benar News has reported that the 18 member Pacific Island Forum Leaders is underway with top diplomats from key partners including China and the United States gathered for a week of talks on decolonization of New Caledonia, climate change and regional security and cohesion.
JAPAN, Tokyo – Japan is hosting the 10th Pacific Island Leaders Meeting (PALM 10) from July 16th to 18th 2024 in Tokyo.
Following his visit to Indonesia, Prime Minister James Marape and a government delegation are in Japan to join other Pacific Island leaders to discuss regional matters and to strengthen ties.
Crucial on the agenda is the dumping of radioactive waste or ‘treated water’ into the Pacific Ocean.
The Japanese government says the Advanced Liquid Processing System or what it calls, ‘ALPS treated water’ from the Fukushima disaster in 2011 has a radioactive concentration far below regulatory standards and views this as safe.
While Human Rights groups and NGOs have voiced concerns on Fukushima, the Japanese Government has been explaining to the international community based on scientific evidence from the International Atomic Energy Agency (IAEA) that it will ensure the nuclear treated waste will not cause harm to humans and the environment.
A major earthquake and tsunami occurred at Fukushima in 2011 destroying the nuclear power station.
Thirteen years on, the reconstruction of Fukushima is ongoing. Japanese citizens live normal in some parts of Fukushima while there are fewer restricted areas. This is essential for the decommissioning of the site and reconstruction of Fukushima.
Earlier in the evening (16th July 2024), Prime Minister James Marape, met with Japan’s Prime Minister, Kashida Fumio ahead of PALM 10.
Both leaders also discussed the ALPS treated water in which Prime Minister Marape again expressed his confidence in Japan’s measures to secure it.
The Japanese Prime Minister also extended his condolences to PNG for those whose lives were affected by the recent landslide in May and stated his wish to further strengthen bilateral relations towards Japan-Papua New Guinea 50th anniversary of the establishment of diplomatic relations.
He expressed gratitude to PNG for ensuring stable access for Japanese fishing vessels in PNG waters, and conveyed the country’s decision to provide a fishery research vessel as well as fishery equipment.
Heads of 14 Pacific Island nations are in Tokyo for PALM 10, including Cook Islands Prime Minister Mark Brown, who is head of the Pacific Island forum.
He conveyed the forum’s collective views on bilateral relations with Japan, in particular the Blue Pacific 2050 strategy. He called for peace and security in the region to safeguard the ocean, lands and common heritage.
Palm or Pacific Island Leaders Meeting is hosted every three years and is the pillar of Japan’s foreign policy with Pacific Island countries.
Petroleum Minister and Member for Esa’ala, Jimmy Maladina has stepped aside from his ministerial portfolio to attend to a domestic assault matter before an Australian Court.
Jimmy Maladina was arrested over the weekend in Sydney following a domestic dispute. He was granted conditional bail and will appear at Waverley Local Court on Thursday (July 11).
Maladina, 58, was alleged to have assaulted a 31-year-old woman known to him. Police who attended to the matter saw bruises on the woman’s face.
Maladina immediately released a statement saying he does not condone any forms of violence and requests privacy for all parties involved in the matter.
“I understand the gravity of the situation and the concerns it raises. As a public servant I hold myself to high standards of conduct, both personally and professionally.”
Prime Minister, James Marape through the PM’s Media head, Matrom John advised the media in the morning that “The Australian Authority will have to provide a brief to the PNG Department of Foreign Affairs before the Foreign Affairs Minister briefs the Prime Minister on this matter.”
Late in the afternoon, the Prime Minister then announced the Petroleum Minister’s decision to step aside from his position while a complaint against him is being heard in court in Australia.
“I thank Minister Maladina for taking responsibility to uphold his name and the integrity of the public office he holds in a professional manner in respecting the judicial process to run its course.
“I had my discussion with the Minister, and as a responsible government that respects the Rule of Law, we uphold high standards. Minister Maladina stepping aside is appreciated,” said PM Marape.
The Prime Minister urged the public to refrain from spreading speculations as this matter is now before a competent prosecutorial process.
The cabinet will appoint a new Minister to act in the position.
Artificial Intelligence (AI) or Generative AI was the hot topic as journalists all over the world gathered in Manila, Philippines for the 2024 International Media Conference.
With the theme “ The Future of Facts”, discussions started off with how artificial intelligence has taken information creation and sharing to a whole new level.
Panelists discussed how AI can be used as a tool in the newsroom and the challenges that come with it.
The panelists were:
Khalil Cassimally, Head of Audience Insights, The Conversation,
Don Kevin Hapal, Head of Data and Innovation, Rappler
Irene Jay Liu, Regional Director for Asia & Pacific, International Fund for Public Interest Media and
Howie Severino, Editor at Large, GMA News Online
Khalil Cassimally shared how the conversation was able to repurpose information to the younger audience using AI and how it proved to be very effective.
Don Hapal from the Philippines Rappler said the AI tool Chatgpt, was very helpful in profiling candidates in the Philippines General Elections.
While a lot of skeptical questions rose from the audience regarding factual information generated by AI, Irene Jay Liu, the Regional Director for Asia and the Pacific, International Fund for Public Interest Media, said it is important that newsrooms must be responsible for fact-checking all information they want to disseminate.
She also added that traditional newsrooms must accept the fact that the audience is ahead of us and already using AI.
The panel, involving journalists and Online specialists called for newsroom collaboration to remain relevant and act quickly by helping to formulate policies that regulate the use of AI so it is not abused.
Six InsidePNG staff are in Manila to participate in the bi-annual International Media Conference hosted by the East-West Center (EWC) in Manila, Philippines.
Inside PNG is part of the Pacific Island contingent, supported by the Organized Crime and Corruption Reporting Project (OCCRP).
The prestigious global event brings media professionals from around the world to discuss current trends and challenges faced by the media industry.
The InsidePNG team, comprising journalists and experienced editors, is looking forward to gaining valuable insights, networking with their international counterparts, and sharing their experiences in covering stories that matter to the people of Papua New Guinea.
The conference, organized by the EWC and partners from various countries, will feature panel discussions, workshops, and presentations on topics such as investigative journalism, press freedom, media ethics, artificial intelligence and the role of journalists in promoting transparency and accountability.
“We are excited to represent InsidePNG at this prestigious international media conference in Manila,” said Charmaine Yanam, Chief Editor and co-founder of InsidePNG.
“We are grateful to OCCRP for recognizing the importance of an independent newsroom that transmits through it’s continued support in pursuing investigative reporting.
This is the second time for InsidePNG to attend this event, the first was in 2022 where only two representatives attended. This time, six staff are in attendance.
InsidePNG Managing Director, Kila Wani (second from right) and Sincha Dimara (First left) standing with team at airport. This picture was taken in 2022 before Wani and Dimara left for Honolulu where the IMC was hosted in 2022.
“What makes it extra special for InsidePNG is, as an independent media organization, we have been selected along with five other Pacific Island media organizations as recipients of Financial Investigative Reporting Mentoring Project.
InsidePNG staff Charmaine Yanam and Julie Badui Owa are on this project for three years,” said Wani.
“This is a huge achievement for me personally and for Inside PNG, as we envisioned it to be an expert in that niche of journalism in Papua New Guinea.
There has been a lack of Financial Investigative Journalism or in-depth research and reporting on the topic in PNG; hence to have this opportunity and the backing to delve into it is a huge achievement. There are a lot of books that needs looking into; and this mentorship program will greatly assist us understand the financial language and hold those misusing public money accountable,” said Yanam.
Mrs Julie Badui Owa said “Inside PNG, although at its infancy stage, with only two years into operation, plans to be the leader in investigative journalism in the country.
“What we are focused on is influencing the trend of journalism through investigative journalism that has been lacking in PNG over the years.
Badui-Owa attributed her statement to three main reasons:
Lack of resources from media organizations
Security
Lack of training and capacity building.
“As a Lead Investigative Journalist with Inside PNG, I am privileged and blessed to be one of the recipients of the FIRM assistance project through the East West Center.
“With the great assistance and support from EWC through FIRM, I believe my Team and I will help contribute in generating change in Journalism and to effectively report on facts, or tell those stories that affect us and that matters; so everyone can participate in democracy.
“I believe we will make a big difference in bringing positive change through the stories we tell, and bring confidence back to the members of the public to hold those in power accountable for the betterment of our country and the world,” expressed Badui-Owa.
The team’s participation in the conference is expected to not only enhance their professional skills and knowledge but also foster greater collaboration with media professionals from diverse backgrounds, ultimately benefiting the media landscape in Papua New Guinea.
“Our journey embodies resilience within the media realm. As a newly established independent investigative journalism organization, we strive for not only financial sustainability but also the voices of the people amidst adversities and uncertainties, particularly in the face of the pervasive influence of social media and AI.
“Currently, our efforts are driven by volunteerism and partner donors in Organized Crime Corruption Reporting Project (OCCRP), EWC, and Internews and we continue to seek sustainable funding to fortify our operations for the long haul,” expressed Kila Wani.
She further emphasized the significance of press freedom and investigative journalism in today’s media landscape.
“Press freedom is the cornerstone of democracy, and investigative journalism plays a pivotal role in holding power to account and uncovering truths that would otherwise remain hidden.
“We, as journalists, have a duty to uphold these principles and safeguard the public’s right to information.”
The presence of InsidePNG staff at the International Media Conference signifies their commitment to press freedom, ethical journalism, and the pursuit of truth in an era marked by skepticism and misinformation.
**Inside PNG is a member centre of the Organized Crime and Corruption Reporting Project (OCCRP)**
TOKYO (AP) — Two Japanese navy helicopters carrying eight crew members crashed in the Pacific Ocean south of Tokyo during a nighttime training flight after possibly colliding with each other, the country’s defense minister said Sunday. One crew member who had been recovered from the waters was later pronounced dead, while rescuers searched for seven others who were still missing.
The two SH-60K choppers from the Maritime Self-Defense Force were carrying four crew each and lost contact late Saturday near Torishima island about 600 kilometers (370 miles) south of Tokyo, Defense Minister Minoru Kihara told reporters
The cause of the crash was not immediately known, but officials believe the two helicopters “highly likely” collided with each other before crashing into the water, Kihara said.
He added his ministry will suspend training flights for all SH-60s for now.
The navy chief of staff, Adm. Ryo Sakai, said the trainings will be suspended until the accident’s cause is determined and preventive measures are adopted.
Rescuers have recovered a flight data recorder, a blade from each helicopter, and fragments believed to be from both choppers in the same area, signs that the two SH-60Ks were flying close to each other, Kihara said. Officials will analyze the flight data to try to determine what led to the crash.
Search and rescue efforts for the missing crew were expanded Sunday, with the MSDF and Air Self-Defense Force together deploying 12 warships and seven aircraft. Japan Coast Guard patrol boats and aircraft also joined the operation.
The helicopters, twin-engine, multi-mission aircraft developed by Sikorsky and known as Seahawks, were modified and produced in Japan by Mitsubishi Heavy Industries. They were on nighttime anti-submarine training in the waters, Kihara said. One lost contact at 10:38 p.m. (1338 GMT) and sent an automatic emergency signal a minute later. They lost contact about 270 kilometers (150 nautical miles) east of Torishima island.
Only one distress call was heard — another sign the two helicopters were near the same place, because their signals use the same frequency and could not be differentiated, Kihara said.
One helicopter belonged to an air base in Nagasaki, and the other to a base in Tokushima prefecture.
The SH-60K aircraft is usually deployed on destroyers for anti-submarine warfare, but is also used for search and rescue and other missions. Japan has about 70 of the modified helicopters.
Saturday’s training only involved the Japanese navy and was not part of a multinational exercise, defense officials said. They said no foreign aircraft or warships were spotted in the area.
Japan, under its 2022 security strategy, has been accelerating its military buildup and fortifying deterrence in the southwestern Japanese islands in the Pacific and East China Sea to counter threats from China’s increasingly assertive military activities. Japan in recent years has conducted its own extensive naval exercises as well as joint drills with its ally the United States and other partners.
The navy chief of staff said Saturday’s training was part of routine anti-submarine warfare drills involving MSDF warships, submarines and Seahawks.
The crash comes a year after a Ground Self-Defense Force UH-60 Blackhawk crashed off the southwestern Japanese island of Miyako, due to an engine output problem known as “rollback,” leaving all 10 crew members dead, which shocked the nation. In 2017, a Japanese navy SH-60J, an earlier generation Seahawk, crashed during a nighttime flight training off Aomori due to human error.
Saturday’s crash and possible collision also recalled a July 2021 nighttime training off the southern island of Amamioshima, where two SH-60s had a minor collision, both suffering blade damage, but causing no injuries.
Following that collision, the MSDF introduced a set of preventive measures. Sakai said Saturday’s crash could have been prevented if all those measures were adequately followed.
In the U.S., a fatal crash of a MH-60S Seahawk during training off California in 2021 was attributed to mechanical failure from unsuspected damage during maintenance, according to the Navy.
Japan’s NHK public television said no weather advisories were issued in the area at the time of Saturday’s crash.
HONG KONG (AP) — Apple said it had removed Meta’s WhatsApp messaging app and its Threads social media app from the App Store in China to comply with orders from Chinese authorities.
The apps were removed from the store on Friday after Chinese officials cited unspecified national security concerns.
Their removal comes amid elevated tensions between the U.S. and China over trade, technology and national security.
The U.S. has threatened to ban TikTok over national security concerns. But while TikTok, owned by Chinese technology firm ByteDance, is used by millions in the U.S., apps like WhatsApp and Threads are not commonly used in China.
Instead, the messaging app WeChat, owned by Chinese company Tencent, reigns supreme.
Other Meta apps, including Facebook, Instagram and Messenger remained available for download, although use of such foreign apps is blocked in China due to its “Great Firewall” network of filters that restrict use of foreign websites such as Google and Facebook.
“The Cyberspace Administration of China ordered the removal of these apps from the China storefront based on their national security concerns,” Apple said in a statement.
“We are obligated to follow the laws in the countries where we operate, even when we disagree,” Apple said. A spokesman for Meta referred to “Apple for comment.”
Apple, previously the world’s top smartphone maker, recently lost the top spot to Korean rival Samsung Electronics. The U.S. firm has run into headwinds in China, one of its top three markets, with sales slumping after Chinese government agencies and employees of state-owned companies were ordered not to bring Apple devices to work.
Apple has been diversifying its manufacturing bases outside China.
Its CEO Tim Cook has been visiting Southeast Asia this week, traveling to Hanoi and Jakarta before wrapping up his travels in Singapore. On Friday he met with Singapore’s deputy prime minister, Lawrence Wong, where they “discussed the partnership between Singapore and Apple, and Apple’s continued commitment to doing business in Singapore.”
Apple pledged to invest over $250 million to expand its campus in the city-state.
Earlier this week, Cook met with Vietnamese Prime Minister Pham Minh Chinh in Hanoi, pledging to increase spending on Vietnamese suppliers.
He also met with Indonesian President Joko Widodo. Cook later told reporters that they talked about Widodo’s desire to promote manufacturing in Indonesia, and said that this was something that Apple would “look at”.
MANADO, Indonesia (AP) — Indonesian authorities closed an airport and residents left homes near an erupting volcano Thursday due to the dangers of spreading ash, falling rocks, hot volcanic clouds and the possibility of a tsunami.
Mount Ruang on the northern side of Sulawesi Island had at least five large eruptions Wednesday, causing the Center for Volcanology and Geological Disaster Mitigation to issue its highest-level alert, indicating an active eruption.
The crater emitted white-gray smoke continuously during the day Thursday, reaching more than 500 meters (1,600 feet) above the peak.
People have been ordered to stay at least 6 kilometers (3.7 miles) from the 725-meter (2,378 foot) mountain. More than 11,000 people live in the affected area and were told to leave. At least 800 have done so.
An international airport in Manado city was temporarily closed Thursday as volcanic ash was spewed into the air.
“We have to close flight operations at Sam Ratulangi Airport due to the spread of volcanic ash, which could endanger flight safety,” said Ambar Suryoko, head of the regional airport authority.
Eruptions Wednesday evening spewed volcanic ash approximately 70,000 feet into the atmosphere, according to the Australian Bureau of Meteorology’s Volcanic Ash Advisory Centre. The bureau said in a statement Thursday it was tracking and forecasting the ash dispersion.
Indonesia’s volcanology center noted the risks from the volcanic eruption include the possibility that part of the volcano could collapse into the sea and cause a tsunami. In December 2018, Indonesia’s Anak Krakatau volcano island erupted and collapsed, losing around 3/4 its volume and triggering a powerful tsunami that killed more than 400 people. An 1871 eruption at Mount Ruang also triggered a tsunami.
Tagulandang Island, east of the Ruang volcano, could be at risk if a collapse occurred. Its residents were among those being told to evacuate.
“People who live in the Tagulandang Island area and are within a 6-kilometer radius must be immediately evacuated to a safe place outside the 6-kilometer radius,” Abdul Muhari, spokesperson of the National Disaster Mitigation Agency, said Thursday.
“And especially those who live near the coast should be aware of the potential for incandescent rocks to erupt, hot clouds and tsunami waves that could be triggered by the collapse of a volcanic body into the sea.”
The agency said residents will be relocated to Manado, the nearest city, on Sulawesi island — a six-hour journey by boat.
Indonesia, an archipelago of 270 million people, has 120 active volcanoes. It is prone to volcanic activity because it sits along the “Ring of Fire,” a horseshoe-shaped series of seismic fault lines around the Pacific Ocean.
By GRACEY WAKARY and EDNA TARIGAN Associated Press & AP writer Rod McGuirk contributed from Sydney.
The Prime Minister of Solomon Islands has recently gone on a home-building spree, constructing eight valuable new houses in and around the capital city of Honiara.
KEY POINTS:
Despite earning a modest salary, Prime Minister Manasseh Sogavare has in recent years rapidly expanded his real estate holdings, building at least eight new houses on three sites in and around Honiara.
Real estate experts said the houses would have cost at least $1.7 million to build, and perhaps as much as $3.2 million.
Financial experts said the value of the houses appears out of proportion with Sogavare’s known income. Some of the construction appears to have been funded by three separate mortgages granted on a single day in 2018, worth a total of over 7 million Solomon Islands dollars (over $900,000). Financial experts said Sogavare’s known income at the time was too low to typically be granted such loans — raising questions about how he obtained them.
By Aubrey Belford (OCCRP), Dan McGarry (OCCRP), Ofani Eremae (In-Depth Solomons), Charley Piringi (In-Depth Solomons), Gina Maka’a (In-Depth Solomons), and Ronald Toito’ona (In-Depth Solomons)
Manasseh Sogavare, the four-time prime minister of Solomon Islands, speaks proudly of his humble origins as a school dropout who once earned a living cleaning toilets and making tea for British colonial officials.
The 69-year-old premier is modestly paid by the standard of world leaders, even after he received a 39-percent pay bump this month that raised his annual salary to 428,560 Solomon Islands dollars, or SBD (around US$50,000).
Solomon Islands Prime Minister Manasseh Sogavare. [[Photo credit: Dan McGarry/OCCRP]]
That relatively low paycheck, however, hasn’t stopped Sogavare and his wife, Emmy, from securing large loans and massively increasing their real estate wealth over the past several years, an investigation by OCCRP and In-Depth Solomons has found.
The couple have builtat least eight new houses on land they already owned in and around the capital, Honiara, reporters found. The construction costs are estimated to run as high as several million U.S. dollars.
One of the houses, a large, multi-story home in the hillside suburb of Tasahe, serves as the couple’s current residence. Other holdings include what are, by local standards, high-end rental properties in the neighborhoods of Lungga and Henderson, located near the Honiara airport.
[[Credit: Edin Pašović/OCCRP]]
Altogether, the houses are believed to have cost the Sogavares between SBD 14 million and SBD 26 million ($1.7 million and $3.2 million) to build, according to local property appraisers who reviewed land and mortgage records, satellite images, and drone photos provided by reporters. The estimates do not include additional costs, such as interior furnishings or landscaping.
The value of the properties appears out of proportion with Sogavare’s known earnings. The size and scale of the houses themselves also stand in stark contrast to the living conditions of most Honiara residents, who pay sky-high prices to live in often ramshackle and overcrowded housing.
With Sogavare seeking to secure a fifth prime ministerial term in key elections on April 17, anti-corruption experts say his fast-growing real estate portfolio — as well as the large loans he obtained to finance it — deserves closer scrutiny.
“He needs to explain to the people: Where did he get all this money from?” said Ruth Liloqula, who heads the Solomon Islands chapter of Transparency International.
Sogavare did not respond to questions from OCCRP and In-Depth Solomons.
“On a PM’s Salary? Definitely Not”
Located at the end of a secluded road overlooking the Ironbottom Sound, the Sogavares’ Tasahe home is still not widely known to the public.
The Tasahe property. [[Photo credit: Aubrey Belford/OCCRP]]
The house is situated on over 1,200 square meters of state land leased by the prime minister and his wife in 2007 but left empty for about a decade. While it’s not clear precisely when construction began, satellite imagery shows that the land went from being completely vacant in early 2017 to containing a completed structure by May 2019.
While the state-owned land it stands on cost relatively little, property valuers estimate the house itself cost between SBD 6 million and 10 million ($720,000 and $1.2 million) to build.
According to neighbors and real estate agents, the home was initially rented out to tenants. Financial records obtained by reporters show that by 2020, the Sogavares were receiving SBD 35,000 ($4,130) a month in rent.
The couple eventually moved into the home themselves after their existing residence — a plot of land in Lungga containing two houses — was damaged after it was targeted in 2021 by rioters opposed to Sogavare’s government. One house was ransacked in the incident; the other was burned to the ground.
When the Sogavares moved to Tasahe, construction crews descended on the Lungga site, demolishing the remaining structures and rapidly building three large new homes in their place.
The three newly constructed homes on the Lungga site. [[Photo Credit: Aubrey Belford/OCCRP]]
The Sogavares have also built homes at their Henderson property, which contained just one small house when they purchased the land in 2015.
Satellite images and drone photos show the plot being developed in stages, with two large houses erected sometime between early 2017 and early 2019. By April 2020, a third house had appeared, and a fourth smaller structure was added sometime in 2023. All four houses appear to be rental properties.
The Henderson property. [[Photo credit: Aubrey Belford/OCCRP]]
Accustomed to the usually sleepy pace of work in Solomon Islands, neighbors told reporters that they were stunned at the speed with which the new houses were built.
“Those of us living around here were so surprised to see three buildings completed in just less than a year, something a Solomon Islander normally couldn’t do,” said Rose Kairi, who watched the Lungga construction work from her home nearby.
Kairi said she saw trucks driven by what appeared to be Chinese workers drop construction materials at the site. Those carrying out the construction were mostly locals, she said.
Rick Houenipwela, himself a former prime minister who served directly before Sogavare’s most recent term, also lives close to the three new houses in Lungga.
Houenipwela’s own home is a sprawling structure cobbled together from typical local construction materials like gyprock, wood, and concrete blocks. He told reporters his own renovations had taken place at a pace typical of Solomon Islands: in fits and starts.
The Sogavares, he said, appeared to suffer from neither delays nor a shortage of money.
“The machines actually were just stationed there… Sometimes they would have work at night,” Houenipwela said.
“It was really quick by our standards,” he added. “And the standard definitely is high, good work. The material, of course, is of quality standard.”
While prime minister, Houenipwela drew on official income and benefits similar to Sogavare’s. He told reporters he had struggled to pay for his own home improvements, and did not understand how his successor could afford his own far more ambitious construction projects.
“On a PM’s salary? Definitely not.”
A History of Real Estate Controversies
This is not the first time the Sogavares’ real estate dealings have come into question.
In 2007, during Manasseh Sogavare’s second prime ministerial term, the couple raised eyebrows with the original purchase of the Lungga property.
The sale was made with the help of a SBD 2.5 million (about $350,000) mortgage from Australia’s ANZ bank — supported by a letter from the Embassy of Taiwan, in which the country’s government guaranteed that it would rent the property. Sogavare was a staunch ally of Taiwan at the time.
The loan and the Lungga purchase drew criticism from lawmakers, who accused him of exploiting his relationship with a foreign government for personal gain.
Sogavare defended himself, saying: “I do not see any law in this country that says once you become a prime minister you are not allowed to go to the bank and get a loan.”
“Taiwan came and said it is going to have a long term tenancy agreement with us,” he added. “Taiwan wanted to rent those two houses. What is wrong with that?”
Members of parliament, including those within his own governing majority, saw it differently. Sogavare was removed in a vote of no confidence later that year, in part due to the uproar over the land deal.
Another controversy swirled with the purchase of the Henderson land in 2015, after Sogavare had returned to serve a third term as prime minister. He and his wife bought the land, which satellite images at the time showed to contain a small dwelling, for SBD 1.5 million (about $190,000).
Questioned in parliament, Sogavare said he had obtained another loan to purchase the Henderson plot. “I wish I had 1.5 million,” Sogavare said at the time.
Land registry documents typically list all mortgages taken out against a property. However, reporters were unable to find any record there showing that Sogavare took out such a loan for Henderson at the time.
An Expensive Building Boom
While the land-purchase deals drew concerns, it has been the past six years that have seen the most dramatic expansion in the Sogavares’ real estate wealth.
In 2018, Sogavare’s lending relationship with Australia’s ANZ Bank — which had provided the mortgage for the Lungga purchase, as well as other smaller loans — ended for unclear reasons. He moved his business across to the French-owned BRED Bank, which on a single day in 2018 granted the politician and his wife three separate, and much larger mortgages worth SBD 7,161,590 ($916,688).
The loans were secured against the properties the couple had acquired in 2007 and 2015, as well as an older, more modest family home in the neighborhood of Vura.
The Vura property. [[Photo credit: Dan McGarry/OCCRP]]
There was just one problem, according to financial experts: The couple likely would not have been able to afford the loans at the time.
Manasseh Sogavare, despite his political longevity, has never served consecutive posts as prime minister in the rough-and-tumble world of Solomon Island politics. At the time BRED agreed to grant him the loans, he was serving as deputy prime minister, earning an annual government salary of just SBD 169,230 (around US$21,000), as well as a housing allowance of up to SBD 240,000 a year (roughly $30,000).
Nor did the couple have any other substantial sources of income. Company registry documents show the Sogavares had no declared business interests at the time.
That would have left the couple far short of the roughly SBD 824,000 (about $104,000) in mortgage repayments they would have owed each year (if calculated according to the central bank’s lending rate at the time, 10.7 percent, and paid out over BRED Solomon’s maximum available term of 25 years.)
Financial experts interviewed by OCCRP and In-Depth Solomons said such a shortfall would normally prompt a bank to turn the Sogavares away.
“Based on Sogavare’s income as deputy PM, it doesn’t look like that he’d be able to service that original loan just on his income alone,” said Matt Fehon, a Sydney-based forensic accountant. “There would have to be other sources.”
By 2019, Manasseh Sogavare had returned to the prime ministerial post for his current fourth term, providing a small boost to his salary. Emmy Sogavare soon launched a cafe business that made a modest income. Financial records show the couple also began renting out their former home in Vura for SBD 11,000 ($1,340) a month.
But even with those gains, the Sogavares’ earnings would still have been swallowed by mortgage payments.
[[Photo credit: Edin Pašović/OCCRP]]
Fehon said BRED Bank may have given the Sogavares a reduced interest rate or allowed them to defer repayments while they built their rental properties. The Sogavares may have also had a third party guaranteeing their loan, he said.
But such special treatment would be risky, and most international banks would have avoided issuing the loans altogether, Fehon said.
“The fact that the individuals are politically exposed persons, you’d want to do additional due diligence,” he said.
“The bank would need to look at the source of those funds, any additional funds, and make sufficient inquiries to satisfy themselves that they’re not illegal payments,” he said.
Such questions are more urgent given Sogavare’s past admission that he received a loan guarantee from Taiwan. While he was previously a staunch advocate of the self-governing island’s interests, he dramatically reversed course in his latest term by switching Solomon Islands’ diplomatic recognition from Taiwan to China and signing a secretive security deal with Beijing.
The move has rattled the West and spurred an uptick in Chinese investment in Solomon Islands. China’s government also makes controversial payments known as “constituency development funds” to both Sogavare and his allies in parliament. The 2021 riots that damaged the couple’s Lungga property was driven in part by public anger over Sogavare’s switch in allegiance from Taiwan to China.
Graffiti on a building being reconstructed following the 2021 Honiara riots. [[Photo credit: Dan McGarry]]
Anti-corruption experts say that both Sogavare and BRED Bank should be transparent about how the loans were secured.
“Based on what you’ve outlined by way of the valuations, and his earning capacity, it appears he’s got a large loan and undertaken an expensive construction project that’s beyond his means,” forensic accountant Fehon said.
BRED Bank declined to comment.
“We are not allowed to comment on confidential information regarding our clients,” bank spokeswoman Leila Salimi said.
Making Up the Difference
While questions remain about the Sogavares’ ability to repay the mortgages, property valuers say the loans would not even have been enough to cover the ambitious construction spree the couple would soon embark on.
If estimates from local land valuers on the cost of construction are correct, the roughly SBD 7 million from BRED would cover only half, or even less, of the total construction costs.
[[Photo credit: Edin Pašović/OCCRP]]
Reporters were unable to find any indication on public land documents showing fresh loans to help cover the construction of the three recently constructed Lungga homes, which according to valuers’ estimates, likely cost a total of SBD 4 million to SBD 8 million (about $470,000 to $940,000) to build.
However, part of the cost appears to have been covered by an insurance payout of SBD 2 million (around $235,000), according to three sources with knowledge of the matter.
And even though the Sogavares may have lacked the initial funds to pay for their construction and loans, that would no longer be the case. With the homes complete, they can now bring in a handsome rental income that far outstrips the prime minister’s official salary.
Neighbors and real estate agents told reporters that at least some of the couple’s new homes in Lungga and Henderson are currently being rented out. Reporters were unable to learn how much these tenants are paying, but financial records from the previous rentals of two houses owned by the Sogavares, as well as estimates from local real estate agents, suggest that the couple could be earning well over SBD 100,000 ($11,800) a month in rent.
![InsidePNG Staff pose for a photo on Day 1 of the International Media Conference. [[Picture/Charlie Piringi]]](https://insidepng.com/wp-content/uploads/2024/06/IMG_0139-768x512.jpg "Six InsidePNG Staff Attend 2024 International Media Conference")
![Graffiti on a building being reconstructed following the 2021 Honiara riots.[[Photo credit: Dan McGarry]]](https://insidepng.com/wp-content/uploads/2024/04/Graffiti-on-a-building-in-Honiara-1024x675.png)
