A meeting between State-Owned Enterprises (SOEs) and the Commercial Investment Unit has made it clear that all SOEs must now comply with the new Commercial Government Business Enterprise Act (CGBE).

During the awareness session, many discussions highlighted that the new law aims to strengthen accountability and transparency among SOEs.

There are currently nine State-Owned Enterprises in Vanuatu.

The Chief Executive Officer of the Commercial Investment Unit, Sowany Joseph, described the law as the “best law” to ensure that SOEs operate properly and in alignment with government expectations.

The awareness session was held in Port Vila after it was discovered that many SOEs had not yet complied with the new law recently passed by Parliament.

Mr. Joseph said they called together the Board of Directors, CEOs, and management teams of SOEs to go through the law and understand their duties and responsibilities.

He emphasized that all SOEs must now submit regular reports to the Ministry of Finance.

CEO of the Commercial Investment Unit, Sowany Joseph:
“Many of them did not do their statements for the last two to three years, and they operate where they should never operate. This is the message: if you don’t have a business plan, you should never operate. If you have no financial audit, you should not spend any money. Now, pull up your socks—if you keep doing things the old way, remember, we now have a law.”

The CEO of Transparency International Vanuatu, Dr. Willie Tokon, said during his time in office, he sees this law as one that covers many aspects of good leadership.

CEO of Transparency International Vanuatu, Dr. Willie Tokon:
“A politician cannot go inside to do corrupt activities anymore. Even the appointment of board members will now follow proper processes. There will be financial management, planning, and budgeting—so the people’s money will be properly used, and the public will see the results through good transparency.”

The Chief Executive Officer of Airports Vanuatu Limited, Jason Rakau, said the Act will help both the government and SOEs operate with a more commercial mindset and ensure their businesses become profitable.

CEO of Airports Vanuatu Limited, Jason Rakau:
“I can see that it’s a two-way street. This Act improves how we manage community service obligations—maybe government wants us to manage those while still achieving commercial success and remaining profitable.”

Vice Chairlady of VBTC, Relvie Poilapa, said the law will bring greater accountability to the boards and management of SOEs.

Vice Chairlady of VBTC, Relvie Poilapa:
“In our decision-making, we must always ensure we focus on profitability, so we can maximize the positive outcomes that benefit the government.”

Mr. Joseph added that the law clearly gives the government the power to remove any director who fails to perform.

The Act, which has already been passed by Parliament, was the focus of today’s awareness session. It highlighted the duties, responsibilities, and actions the government can take if SOEs fail to operate effectively.

All SOEs must now submit regular reports to the Minister of Finance.