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FAILED VANGUNU OIL PALM PROJECT: MDL – A GOVERNMENT SCAM
calendar03-02-2009 | linkSolomon Star News | Share This Post:

02/02/2009 (Solomon Star News) - MDL stands for Marovo Development Limited, a company formed to do or run the Outgrower Palm Oil Scheme of the famous failed Vangunu Oil Palm Project.  It is a private entity created purposely to do the Outgrower Scheme under the supervisor of Silvania Plantation Product (SI) Limited (SPPL).

Its inception was sometimes in 2005 when the current Managing Director of Silvania, Mr Joseph Wong and one of the directors of the Kumpulan Emas Berhard (KEB), a Malaysian company, Mr Chia were trying to acquire money to start the Outgrower Scheme from the government.

It is rumoured that the government had around $58 million of royalty money from the government owned Lot 16 log exports as well as the surrounding landowner lots on Vangunu Island.  Mr Joseph Wong then started to work with landowners and started the Outgrowers scheme showing the government that as a nuclear estate in government land (Lot 16); he had the interest of people and their development at heart, a very keen developer and a womanizer.

The government did not or could not give money to an overseas investor to do the development of palm oil in Vangunu and to apply to the government for the royalty money to be channelled through them.

So two (2) very UN Marovo individuals, Mr. Roger Tauariki (Personnel Manager, Silvania) from Sikaiana and Mr. Sim Swee Him, a Malaysian Chinese (married to Sikaiana) who is now a Solomon Island citizen and acting Plantation Manager of Silvania Plantation Products (SI) Limited at that time, formed the company that is now known as Marovo Development Limited.

These two directors are nothing but pawns of Mr. Joseph Wong who came not trotting but running at his call.  MDL did not have any capital to start off with and Silvania under Mr. Wong funded the initial cost of Outgrower Oil Palm in Vangunu.

MDL hired the services of Mr. Allen Oliver, a PNG national to do the project proposal and estimates for them, which was presented to the government in 2006.  The government approved the MDL proposal towards the end of 2006 and gave the money to MDL to start the Outgrower Project then.

A government management unit then was set up and placed within the MDL establishment which consisted of representatives from Agriculture, Customs, Forestry, Inland Revenue and others to ensure the proper use of the government money that was used.

MDL did not get to see this money being used wisely. All moneys were only spent by Silvania Managing Director, Mr. Joseph Wong who always claimed that Silvania had spent a lot of money on development of the Outgrower on Vangunu.  It is interesting to note that all exportable logs from these projects were exported and all works for Plantation development fell to Silvania workers to do.

Landowners were only allowed to recruit workers when told to do so without much choice.  It is not known where the money for the Outgrower logs went to as the landowners only received loyalty money rather than the full value of the round logs sent overseas.

So who benefits?  MDL, landowners or Mr. Joseph Wong.  Your guess is as good as mine.

MDL has no assets at the Outgrowers area.  Only Silvania machinery that were used there and have been taken away and with the exception of two landing crafts – LC Bersama and LC Borcos II, the people of Marovo hardly see those Landing Crafts as Mr. Tauariki runs them as his private property.

The progress of palm oil Outgrower has come to a standstill as there has been no money to carry on the work.  Only five areas were done:-

Subolo       10 Hectare planted
Mokuana   23 Hectare planted
Lot 19        15 Hectare Planted
Lot 9         16 Hectare Planted
Lot 18       14.7 Hectare Planted
 
With the exception of lot 19, the other areas are no way near halfway with their area to plant.

The government is now very keen to continue with the Outgrower planting of palm oil on Vangunu and funds are being allocated for this.  If Mr. Joseph Wong  is still going to continue with other partners to do Lot16 as nuclear estate, then there is no doubt that the project is going to fail even before it starts.

Solution?  Get rid of Mr Joseph Wong from Lot16 and from the country for the safety of government money to be used wisely on Vangunu.  This should be done to the likes of all other Asian investors who treated the Government of Solomon Islands with scorn.