ELEVENTH LEGISLATURE

PARLIAMENT OF THE REPUBLIC OF VANUATU

PARLEMENT DE LAREPUBLIQUE DE VANUATU

ELEVENTH LEGISLATURESECOND EXTRAORDINARY SESSION OF 2017

ATfYizr7i\/Ti»T:T> i rurrii'MRER 2017

DEUXIEME SESSION EXTRAORDINAIRE DE 2017 20 NOVEMBER - 1 DECEMBRE 2017

SUMMARISED PROCEEDINGS PROCES-VERjiAl X ■

CERTIFICATION

The Minutes of Proceedings, which appear in the following book have been established by the Clerk of Parliament, have been amended and confirmed by Parliament in accordance with the provisions of the Standing Order 18 of Parliament.

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Speaker of Parliament

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ELEVENTH LEGISLATURE OF PARLIAMENT

SECOND EXTRAORDINARY SESSION OF 2017

20 November 2017

Speaker of Parliament

His Excellency, Hon. Esmon SAIMON

Parliament Office-Holders

First Deputy Speaker —Hon. Edwin Amblus MACREVETH

Second Deputy Speaker - Hon. Toara Daniel KALO

Third Deputy Speaker - Hon. Jerry KANAS

Fourth Deputy Speaker - Hon. Marcellino BARTHELEMY

Leader of the Government in the Parliament -Hon. Chariot SALWAI Tabimasmas

Deputy Leader of the Government in the Parliament — Hon. Joe NATUMAN

Leader of the Opposition - Hon. ALATOI Ishmael Kalsakau

Deputy Leader of the Opposition - Hon. Fred TASSO

Leader of Government Business - Hon. Gillion WILLIAM

Government Whip - Hon. - Bob LOUGHMAN

Opposition Whip — Hon. - Christopher EMELEE

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GOVERNMENT OF THE REPUBLIC OF VANUATU(These Ministers constitute the Cabinet and -were in office on 20 November 2017)

Prime Minister and Minister of PublicService

Deputy Prime Minister and Minister of Trade Industry and Commerce

Minister of Infrastructure and Public Utilities

Minister of Foreign Affairs, External Trade and Telecommunication

Minister of Internal Affairs

Minister of Finance and Economic Management

Minister of Agriculture, Forestry and Fisheries

Minister of Health

Minister of Education

Minister of Lands, Geology and Mines and Water Resources

Minister of Justice and Social Welfare

Minister of Youth and Sports

Minister of Climate Changes

Hon. Chariot SAL WAI Tabimasmas

Hon. Joe NATUMAN

Hon. Jotham NAP AT

Hon. Bruno LENGKON

Hon. Alfred MAOH

Hon. Gaetan PIKIOUNE

Hon. Matai SEREMAIAH

Hon. Jerome LUDVAUNE

Hon. Jean Pierre NIRUA

Hon. Ralph REGENVANU

Hon.Ronald Warsal KALMASEI

Hon. Simeon SEOULE

Hon. Ham LINI Vanuaroroa.

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ALATOI, Hon. Ishmael Kalsakau

ATI, Hon. Marc

BARTHELEMY, Hon. Marcellino

EMELEE, Hon. Christopher Claude

KALMASEI, Hon. Ronald Warsal

KALMET, Hon. Norris

KALO, Hon. Toara Daniel

KALO, Hon. Seule

KALSAKAU, Hon. Joshua Tafura

KALSAKAU, Hon. Ephraim

KANAS, Hon. Jerry

KILMAN, Hon. Sato

KOANAPO, Hon. Johnny Rasou

LANO, Hon. Kalo Pakoa Songi

LENGKON, Hon. Bruno

LINI, Vanuaroroa, Hon. Ham

LOUGHMAN, Hon. Bob

LUDVAUNE, Hon. Jerome

MACREVETH, Hon. Amblus Edwin

MAHE, Hon. Rick Tchamako

MAOH, Hon. Alfred

20 November 2017

Member for Port Vila UMP

Member for Luganville IG

Member for Malekula RMC

Member for Torres VNDP

Member for Santo VP

Member for Efate UMP

Member for Shepherds VGC

Member for Port Vila VGC

Member for Efate VLP

Member for Efate IND

Member for Efate IND

Member for Malekula PPP

Member for Tanna VP

Member for Tongoa IG

Member for Ambrym NUP

Member for Pentecost NUP

Member for Tanna VP

Member for Malekula UMP

Member for Santo FMP

Member for Santo RMC

Member for Santo GJP

MATA, Hon. Jacob Member for Ambae NAG

MELVE, Hon. Silas Bule Member for Pentecost NUP

NALING, Hon. Tomker Netvunei Member for Tafea Outer Islands UMP

NAP AT, Hon. Jotham Member for Tanna LPV

NAPUAT, Hon. Andrew Solomon Member for Tanna GJP

NATAPEI, Hon. Kenneth Member for Port Vila VP

NATUMAN, Hon. Joe Member for Tanna VP

NATUMAN, Hon. Nakou Member for Tanna UMP

NEW, Hon. Hosea Rothul Ovock Member for Santo IG

NGWELE, Hon. Jay Member for Ambae IG

NIRUA, Hon. Jean Pierre Member for Port Vila IND

NMALAMUWOMU, Hon. Don Ken Member for Malekula PSP

NOAM, Hon. Iouni wan Tom Member for Tanna IND

PIKIOUNE, Hon. Gaetan Member for Santo NAG

REGENVANU, Hon. Ralph Member for Port Vila GJP

SAIMON, Hon. Esmon Member for Malekula VP

SALA, Hon. John Member for Malekula GJP

SAL WAI, Hon. Chariot Tabimasmas Member for Pentecost RMC

SAMSEN, Hon. Samson Member for Santo VPP

SEOULE, Hon. Simeon Member for Epi UMP

SEREMAIAH, Hon. Matai Member for Luganville IND

SHADRACK, Hon. Gracia Member for Malekula IND

TABISAL, Hon. Chani Francois Member for Pentecost NUP

TASSO, Hon. William Fred Member for Paama GJP

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TONGOLILU, Hon. Daniel Isaac

VIRA, Hon. Alickson

WARAWARA, Hon. Uri

WILLIAM, Hon. Gillion

Member for Epi

Member for Ambae

Member for Malo/Aore

Member for Efate

IND

NATATOK

GJP

GJP

WILLIAMS, Hon. Albert Abel

WILSON, Hon. Ian

WONA, Hon. Jack

Member for Ambrym GJP

Member for Maewo IND

Member for Banks VNDP

Political Party Abbreviation

FMP Fren Melanesian Party (1) PPP Peoples Progressive Party (1)GJP Graon mo Jastis Party (8) PSP People Service Party (1)IG Iauko Group (4) RMC Reunification Movement for Change (3)IND Independent(8) UMP Union of Moderate Party (6)LPV Leaders Party of Vanuatu (1) VGC Vanuatu Green Confederation (2)

VLP Vanuatu Labour Party (1)NAG Nagriamel (2) VNDP Vanuatu National Development Party (2)NAT Natatok (1) VP Vanua'aku Party (6)NUP National United Party (4) VPP Vanuatu Presidential Party (1)

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MONDAY 20 NOVEMBER 2017

LATE

SPEAKER : The Hon. Esmon SAIMON, Member for Maleukla

PRESENT : 32 Members

ABSENT : The Hon. ALATOI Ishmael Kalsakau, Member for Port VilaThe Hon. Marc ATI, Member for LuganvilleThe Hon. Norris KALMET, Member for EfateThe Hon. Ephraim KALSAKAU, Member for Port VilaThe Hon. Joshua KALSAKAU, Member for EfateThe Hon. Don Ken NMALAMUWOMU, Member for MalekulaThe Hon. Sato KILMAN, Member for MalekulaThe Hon. Rick Tchamako MAHE, Member for SantoThe Hon. Tomker Netvunei NALING, Member for Tafea Outer IslandsThe Hon. Tom Iouniwan NOAM, Member for TannaThe Hon. LANO Pakoa Songi, Member for TongoaThe Hon. Samson SAMSEN, Member for SantoThe Hon. Seule KALO, Member for Port VilaThe Hon. Francois Chani TABISAL, Member for PentecostThe Hon. Fred William TASSO, Member for PaamaThe Hon. Toara Daniel KALO, Member for ShepherdsThe Hon. Isaac Daniel TONGOLILU, Member for EpiThe Hon. Ham LINI Vanuaroro, Member for PentecostThe Hon. Albert WILLIAMS, Member for AmbrymThe Hon. Jay NGWELE, Member for Ambae

1. The sitting commenced at 9.10a.m.

2. The Hon. Speaker SAIMON stated that in accordance to Article 21 (4) of the Constitution two thirds of Members must be present at the first sitting in any session of Par lament, since there were only 31 Members present, he said Parliament cannot procee . e en said to return 3 days later on Thursday 23rd November 2019 at 8.30a.m.

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3. The Hon. Joe NATUMAN, Deputy Prime Minister and Member for Commerce, Industry and Tourism and Member for Tanna, referred to Section 38 of the Standing Order then asked the Speaker to give an order for the bells to be rung again and if a quorum is not present then the sitting should be adjourned. He added that the section does not require returning after 3 days.

4. The Hon. Speaker S AIMON stated he had obtained advice that if a quorum is not present on the first day of any session then Parliament shall meet 3 days later and then adjourned the sitting.

5. The sitting was adjourned at 9.15a.m.

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THURSDAY 23 NOVEMBER 2017

SPEAKER The Hon. Esmon SAIMON, Member for Maleukla

PRESENT 44 Members

ABSENT The Hon. Marc ATI, Member for LuganvilleThe Hon. Christopher Claude EMELEE, Member for TorresThe Hon. Bruno LENGKON, Member for AmbrymThe Hon. Jerome LUDVAUNE, Member for MalekulaThe Hon. Jay NGWELE, Member for AmebaeThe Hon. Samson SAMSEN, Member for SantoThe Hon. Ham LINI Vanuaroroa, Member for Pentecost

LATE


2. The Hon. Speaker SAIMON stated that a simple majority might constitute a quorum; therefore, Parliament may proceed with the business it has been summoned. After saying the Prayer, he explained that the Prime Minister called the Second Extra Ordinary session of 2017 on the 11th October in accordance with Standing Order 14 then read the list of Bills to be debated.

3. The Hon. ALATOI Ishmael Kalsakau, Leader of Opposition and Member for Port Vila, referred to Standing Order 21 'Urgent Debate' then said the legal case involving a Member of Parliament present in this session was a matter of urgent consideration, then requested an urgent debate.

4. The Hon. Speaker SAIMON responded that urgent debates could only be considered during Ordinary Sessions.

5. The Hon. Leader of Opposition ALATOI referred to Standing Order 21 and pointed out that the case be considered for public interest.

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6. The Hon. Joe NATUMAN, Deputy Prime Minister and Minister of Commerce, Industry and Tourism and Member for Tanna, referred to Article 27(2) stating that no Member may be arrested during a session of Parliament, thus, this case cannot be discussed.

7. The Hon. ALATOI raised a point of order and said charges were laid against the Hon. DPM NATUMAN. He said the Hon. DPM NATUMAN must refrain from using immunity to escape from Justice.

8. The Hon. DPM NATUMAN continued to read Article 27(2) of the Constitution and stated the said provision exceeds that of the Standing Orders of Parliament. He reminded that House that Members have privileges and asked the Hon. Speaker to proceed with Parliament business.

9. The Hon. ALATOI admitted that immunity is a right but Parliament may consider that and excuse the DPM from being part of this Second Extraordinary Session of Parliament. He said the Hon. DPM NATUMAN should show a good example to the younger politicians and then moved that the Hon. DPM be excused until the Court has decided on the case.

10. The Hon. Speaker SAIMON said he would first read the agenda of the day.

11. The Hon. Sato KILMAN, Member for Malekula, asked whether the issue would be considered after the agenda.

12. The Hon. Speaker SAIMON insisted on reading the agenda.

13. The Hon. KILMAN referred to Standing Order 21 and asked the Speaker to point out the provisions stating that urgent debates can only be made during ordinary sessions.

14. The Hon. Speaker SAIMON maintained his decision by continuing with reading the agenda.

15. The Hon. Hosea NEVU, Member for Santo, asked to proceed with the session as it has been delayed for the last 2 days.

16. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services and Member for Santo, stated that the Government called the Sitting and that it has a planned agenda. He added that if the Opposition had its own agenda then it should assemble the majority of Members and call a sitting for that occasion. He then informed Parliament that the trial was schedule for 6th December 2017.

17. The Hon. Speaker SAIMON again reminded the House that his decision has been made.

18. The Hon. Joshua KALSAKAU, Member for Efate, clarified the misunderstanding word of the Hon. Speaker saying that he had made contact with him instead it was made with the Leader of Opposition.

19. The Hon. Speaker admitted that he had made contact with the Leader of Opposition but Standing Order 21 is valid for ordinary sessions but not extra ordinary sessions.

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The Hon. ALATOI warned the House of a conflict of interest and pointed out that according to the Hon. Speaker’s instructions, urgent debates may be made during extra ordinary sessions.

The Hon. Speaker SAIMON admitted that it was a misunderstanding and corrected himself on the matter.

The Hon. Chariot SALWAI, Prime Minister and Member for Pentecost referred to Standing Order 22 and asked that Parliament proceeded with its agenda.

The Hon. KILMAN pointed out that it was necessary to enlighten the issue and sought clarification from the Hon. Speaker on Standing Order 21, which stipulates that urgent debates can only be done in Ordinary session and not extraordinary sessions. He then referred and read SO 34 (2) then explained that the subsection serves to facilitate justice; however, SO 22(2) and Article 27(2) of the Constitution were the basis provisions for the request made to Parliament by the Hon. Leader of Opposition ALATOI and then called for an urgent debate to be made.

The Hon. Leader of Opposition ALATOI made an additional comment to that of the Hon. KILMAN. He said he feared that Members were fleeing the Law by hiding behind the immunity privilege. He added that the practice must avoid being abused in order to protect the integrity of the House. He said he respected the rights of the Hon. DPM NATUMAN of his innocence until proven otherwise; however, Parliament may authorize the waiver of immunity until the case has ended.

The Hon. Speaker SAIMON referred to SO 14(2) and sought consensus of the House to have an urgent debate.

The Hon. Leader of Opposition ALATOI said if the motion was to allow discussion on the matter, then asked the Speaker to deliberate in accordance with the Standing Orders. He rested the Hon. KILMAN’s question on the details for which Parliament cannot deal with urgent debates then moved a motion to allow urgent debate.

The Hon. Fred TASSO, Deputy Leader of Opposition and Member for Paama, seconded the motion and said that the Hon. Speaker SAIMON should have pointed out Standing Order 14 during his meeting with the Hon. Leader of Opposition ALATOI.

The Hon. Prime Minister SALWAI explained that Standing Order 14 was clear and asked the Speaker to proceed with the agenda.

The Hon. KILMAN agreed that Standing Order 14 provided for a debate based on the order of the session, however, an urgent debate, as it name suggests, could not be predicted.

The Hon. Speaker SAIMON repeated that there was confusion between ordinary and extra ordinary sessions; however, Standing Order 14 still applies.

The Hon. Gillion WILLIAM, Leader of Government Business and Member for Efate, announced the withdrawal of Bills listed number 15, 18, 19, 20, 21, 22, 23, 24, 25, 26 and 27.

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32. The Hon. Speaker read the agenda.

33. The Hon. LOGB, Gillion WILLIAM, announced the next bill.

BILL FOR THE FINANCIAL INSTITUTIONS (AMENDMENT) ACT NO. OF 2017

FIRST READING

34. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, introduced the Bill, stated the reasons for the amendments and then moved that the Bill be read a first time.

35. The Hon. ALATOI Ishmael KALSAKAU, Leader of Opposition thanked the people behind the drafting of the Bill and accused the Government of approving Bills only to satisfy their interests and that of other countries. He went on that during the last session some Bills were approved with intention of removing Vanuatu off the grey list but which still remains today. He said Vanuatu was proud of it sovereignty, however, the Government was selling it to other powers. He stressed that it was important that Vanuatu protected its people in order to protect its sovereignty, therefore, the Opposition will vote against the Bill. He concluded by saying he noted that all Bills that are supposed to generate income into the country were all withdrawn.

36. The Hon. Andrew NAPUAT, Member for Tanna, thanked the Minister of Finance, the Government and the Staff for their efforts to remove Vanuatu from the grey list. He admitted that many things have disadvantaged Vanuatu but it is good that it’s finally linking to the FATF. Regarding sovereignty, he recommended that concerns should be raised during negotiations. He then argued that the absence of compliance mechanism should not classify this Nation as part of the grey list. He said he supported the idea of removing the country from the grey list despite its disappointments and lack of financial assistance.

37. The Hon. Deputy Leader of Opposition TASSO noted that a number of Bills have been approved in the last session to ensure Vanuatu graduates from the grey list, he then questioned the number of FATF Bills yet to be approved to make sure it happens.

38. The Hon. Prime Minister SALWAI spoke in favor of the Bill and thanked the Minister for the explanation. He said these changes should have been made in 2006, however, the project proposal did not guarantee the country’s exit from the grey list but attests to the effort made. He explained that to graduate from the grey list, Vanuatu must comply with all laws. He also agreed that Vanuatu is a sovereign nation and a member of the United Nations (UN) which means there will be assessments carried out to determine whether the country is eligible to graduate or not.

39. The Hon. Leader of Opposition ALATOI recalled that the Opposition had voted for the Bill last session with hope that the country would graduate from the grey list but is currently there. He said the sale of passport could become suspicious and cause the country to remain in the black list. He added that awareness should have been carried out

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before the approval of the Bill, and declared that the opposition will maintain their decision to vote against.

40. The Hon. Minister PIKIOUNE explained that during the last session he made it clear that the Bill were part of the requirements to graduate from the black list. He, however, took note of the Opposition’s concerns and reassured the House that the Bills will help move the Country forward.

41. The Hon. Chariot SALWAI explained that after every approval of a Bill, it must be implemented and failure to comply may result in failing to graduate. He then asked how Vanuatu intended to engage in trade that it is removed from the foreign currencies list. He explained that a consequence of that would be that one could not import goods from foreign countries without foreign currency. He said all 31 Bills concerning the latter must be approved.

42. The motion that the Bill be read a first time was approved by 37 votes in favor and 4 against.

COMMITTEE STAGE

Section 1, “Amendment”

43. Amendment 1, “Subsection 1(1)”, was approved on division.

44. Amendment 2, “Subsection 1(1) (definition of “manager”)” and Amendment 3, “At the end of section 1”, were approved on division.

Amendment 4, “Paragraph 6(2) (a)”. Amendment 5, “Paragraph 6(2) (b)”. Amendment 6, “Subsection 7(3)”, Amendment 7, “Paragraph 9(2) (a)”. Amendment 8, “Paragraph 9(2) (b)”. Amendment 9, “After paragraph 11(1) (b)”. Amendment 10, “Paragraph 11(6) (a)”. Amendment 11, “Paragraph 11(6) (b)” and Amendment 12, “Paragraph 13(2) (d)”

45. The Hon. Andrew NAPUAT, pointed out that the fines laid out under amendment 4 were too high and asked whether they can be afforded. He said if the Government does not reinforce compliance mechanism, Vanuatu would not be able to graduate from the black list.

46. The Hon. Minister-PIKIOUNE responded that the amounts are part of the FATF requirements, which will also be a way to avoid committing offences.

47. Amendments 4, 5, 6, 7, 8, 9, 10, 11 and 12 were approved on division.

48. Amendment 13, “At the end of section 13”, Amendment 14, “Paragraph 12(2) (a)”. Amendment 15, “Paragraph 17(1) (e)” and Amendment 16, “After subsection 17(1)”. were approved on division.

Amendment 17, “After subsection 21(2A)”, Amendment 18, “Subsection 27(3)”, Amendment 19, “Subsection 41(3)”, Amendment 20, “After paragraph 42(1) (b)”. Amendment 21, “Subsection 42(3)” and Amendment 22, “Subsection 42(4)”

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49. The Hon. KILMAN referred to amendment 18 then asked whether it applied to all categories of banking licenses.

50. The Hon. Albert WILLIAMS, Member for Ambrym, sought clarification on the VT10 million mentioned.

51. The Hon NAPUAT asked whether it was possible to reduce the amount according to the context of the situation of this country.

52. The Hon. Minister PIKIOUNE confirmed that amendment 18 applies mainly to Banks and said that the amount are set to avoid committing offences.

53. The Hon. Jacob MATA, Member for Ambae, referred to amendment 19 and said the amount of VT10 million has been replaced by VT125 million. He then asked if this reflected the current market value.

54. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services and Member for Santo, clarified that the fines were reasonable as they matched the international organized crime fines.

55. The Hon. Ralph REGENVANU, Minister of Lands and Member for Port Vila, admitted that maximum penalties, would be recommended by Judges while taking into account the situation.

56. The Hon. Leader of Opposition ALATOI asked whether there was a proposal stating that the Act only applied to non-citizens.

57. The Hon. Minister PIKIOUNE referred to amendment 19 and said it applied to subsidiaries, however, before creating an affiliate, one will need the approval of the Reserve Bank otherwise the Law will apply.

58. Amendments 17, 18, 19, 20, 21 and 22 were approved on division.

59. Amendment 23, “Paragraph 42A (1) (b)”, Amendment 24, “Subsection 42A (5)” and Amendment 25, “Section 50”, were approved on division.

60. Amendment 26, “Subsection 51(5)”, Amendment Tl, “Subsection 54(2)” and Amendment 28, “Section 55”, were approved on division.

61. Amendment 29, “After section 57”, Amendment 30, “Subsections 58(3), (4), (5), (6) and (7)” and Amendment 31, “Transitional provisions for certain licensee information”, were approved on division.

62. Section 1 was approved on division.

63. Section 2, “Commencement”, was approved on division.

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SECOND READING

64. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, thanked the House for its contributions and then moved that the Bill be read a second time and do pass.

65. The motion that the Bill be read a second time and do pass was approved by 38 votes in favor and 3 votes against.

66. The Hon. LOGB, Gillion WILLIAM, introduced the next bill.

BILL FOR THE FOUNDATION (AMENDMENT) ACT NO. OF 2017

FIRST READING


68. The motion that the Bill be read a first time was approved by 37 votes in favor and 4 votes against.

COMMITTEE STAGE


69. Amendment 1, “Section 2” and Amendment 2, “After section 4”. were approved on division.

70. Amendment 3, “After subparagraph 6(2) (d) (i)”, Amendment 4, “Subparagraph 6(2) (d) (ii)”, Amendment 5, “Subparagraph 6(2) (d) (iii)”, Amendment 6, “After paragraph 6(2) (f)” and Amendment 7, “Subsection 7(1)”, were approved on division.

71. Amendment 8, “Subsection 11(2)”. Amendment 9, “Subsection 12(8)”, Amendment 10, “After paragraph 17(2) (b)”. Amendment 11, “Subsections 19(4) and 25(3)”. Amendment 12, “Part 7 (Heading!” and Amendment 13, “After section 29”. were approved on division.

72. Amendment 14, “Paragraph 30(1) (d)”. Amendment 15, “Subsection 31(5)”, Amendment 16, “Subsection 32(5)” and Amendment 17, “After Part 7”, were approved on division.

73. Amendment 18, “Paragraph 35(1) (a)”. Amendment 19, “After subparagraph 35(2) (d) (i)”, Amendment 20, “Subparagraph 35(2) (d) (iv)” and Amendment 21, “Paragraph 35(2) (g)”, were approved on division.

Amendment 22, “Subsection 37(1)” and Amendment 23, “Subsection 43(1)”

74. The Hon. NAPUAT referred to Amendment 17, specifically subsection 34C then asked whether the Minister can elaborate on it.

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75. The Hon. Leader of Opposition ALATOI supplemented that the question raised by the Hon. NAPUAT is mainly about finding out who were Members of the FATF. He also highlighted that the injustice that is there between Vanuatu and other countries such as USA who play the police when they are not able to meet their own requirements.

76. The Hon. Minister PIKIOUNE said he would be answerable to that after the approval of the Bill for the Vanuatu Financial Services Commission (VFSC).

77. The Hon. NAPUAT asked what would happen if the Commission refused to disclose the information requested.

78. The Hon. Minister PIKIOUNE responded by highlighting the importance of approving this Bill which encloses a provision that will defend the right of VFSC.

79. The Hon. Ephraim KALSAKAU said if the Commission does not provide the information required, Vanuatu might not be able to graduate from the grey list.

80. The Hon. Minister PIKIOUNE reassured the House that Vanuatu would graduate from the grey list because it had made the required changes to its Laws.

81. Amendment 22 and 23 were approved on division.

82. Amendment 24, “Paragraph 48(1) (f)”, Amendment 25, “Paragraph 48(1) (j)”. Amendment 26, “Section 49 (heading)”, and Amendment 27, “At the end of section 49”, were approved on division.

83. Amendment 28, “After section 55” and Amendment 29, “Transitional”, were approved on division.



SECOND READING

86. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, thanked the House for their contributions and then moved that the Bill be read a second time and do pass.

87. The motion that the Bill be read the second time and do pass was approved by 34 votes in favor and 6 against.

88. The Hon. LOGB, Gillion WILLIAM, introduced the next bill.

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BILL FOR THE CHARITABLE ASSOCIATIONS (INCORPORATION) (AMENDMENT) ACT NO. OF 2017

FIRST READING


90. The Hon. NAPUAT thanked the Minister for the introduction of the Bill and then pointed out that with this Bill, people would be given the freedom to do what they are not authorized to do in this country.

91. The Hon. Leader of Opposition ALATOI added that the Law allowed foreign countries to judge other countries, for that reason, he declared that the Opposition would vote against.

92. The Hon. Minister PIKIOUNE made it clear that the Law does not permit anyone such as the Australian Federal Police (AFP) to come in and make arrests.

93. The Hon. Christopher EMELEE, Member for Torres, spoke in favor of the Bill and asked where the country stood with the application of the Bill. He said it was important to control the sale of passports in order to maintain the country’s integrity. He then asked

y that Vanuatu be careful not to employ foreign spies.

94. The Hon. Deputy Leader of Opposition TASSO said he was in disagreement with the ideas set out in the Bill; however, he is obliged to respect them.

95. The Hon. Leader of Opposition ALATOI asked why the Government was making it difficult when there is an effective judicial system already in place.

96. The Hon. Minister PIKIOUNE informed the House that the Government had already provided resources to enforce these Laws. He said an increase in number of FIU staff from 3 to 15 is part of the enforcement. He then responded to the Hon. TASSO’s concerns by explaining that it applied to the VFSC and not foreign agencies.

97. The Hon. Marcellino BARTHELEMY, Member for Malekula, spoke in favor of the Bill and stressed the importance of ensuring that there was equality between the Act and its implementation. He suggested that a competency program be run in case of shortage of resources and financial assistance.

98. The Hon. Prime Minister SALWAI said another upcoming Bill would cover the concerns raised by the Hon. BARTHELEMY.

99. The Hon. Alfred MAOH, Minister of Internal Affairs and Member for Santo, stated CAP 105 allowed local Police force to conduct an investigation.

100. The Hon. Joe NATUMAN, Deputy Prime Minister and Minister of Trade, Commerce and Industry, stated that the implementation will be slow, but it will be worth the try. He

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went on to say that, only political exposed people would raise questions before a change is made. j

101. The Hon. EMELEE apologized to the Leader of Opposition for accusing him of certainallegations. ]

102. The motion that the Bill be read a first time was approved by 34 votes in favor and 4 .against. I

COMMITTEE STAGE |


103. Amendment L “Section 1”. was approved on division. I

104. Amendment 2, “After section 1” and Amendment 3, “Subsection 2(2)”, were approved ion division. ■

105. Amendment 4, “Section 3 (heading)”. Amendment 5, “Subsections 3(3), (4) and (5)”, IAmendment 6, “Subsection 4(1)” and Amendment 7, “Paragraph 10(1) (f)”, were Iapproved on division.

Amendment 8, “Section 11”, Amendment 9, “Section 13” and Amendment 10, “Aftersection 14”

106. The Hon. Leader of Opposition ALATOI referred to amendment 10, section 14A (1) (f) ■on disclosure of information, then said this provision was still opening doors for agenciesto take action in Vanuatu. |

107. The sitting was suspended at 11.30a.m and resumed at 2.20 p.m.108. The Hon. Minister PIKIOUNE replied that the amendment is necessary for Vanuatu to '

exit from the grey list through the FATF requirements.

109. Amendment 8, “Section 11”. Amendment 9, “Section 13”, and Amendment 10, “After section 14” were approved on division.

110. Amendment 11, “After subsection 15A(1)”, Amendment 12, “Subsection 15A(3)”. and Amendment 13, “After section 15A” were approved on division.

111. Amendment 14, “Subsection 15B(1)”, Amendment 15, “After section 15B”. Amendment 16, “Schedule 1”, Amendment 17, “Transitional” were approved on division.

112. Section 1, was approved on division.

113. Section 2, “Commencement” was approved on division.

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SECOND READING

114. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management thanked the House for their support and comment on the bill and moved that the Bill be read a

' second time and do pass.


116. The Hon. Gillion WILLIAM, LOGB announced the next bill.

BILL FOR THE VANUATU INTERACTIVE GAMING (AMENDMENT) ACT NO. OF 2017

FIRST READING

117. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management and Member for Santo, introduced and explained the purpose of the amendment, and moved the Bill to first reading.

118. The Hon. ALATOI Ishmael Kalsakau, Leader of Opposition and Member for Port Vila, specified that FATF requirements through these bills remove the executive power of the Government, and allows civil servants to become regulators. He added that Vanuatu has to regulate its own laws and not necessarily depend on the requirements of such organizations. He then declared that the opposition would vote against the bill.

119. The motion that the Bill be read the first time was approved by 34 votes in favor and 7 votes against.

COMMITTEE STAGE

Section 1, “Amendments”

120. The Hon. Minister PIKIOUNE made a correction by renumbering amendment 39 to amendment 36.

121. Amendment 1, “Whole of the Act (other than the definition of Minister in section 1, section 7, subsection 34(4), sections 38 and 44)”. Amendment 2, “Section 1”, were approved on division.

122. Amendment 3, “Section 1 (definition of “law enforcement agency”)”, and Amendment 4, “Section 1 (definitions of “close associate”)”, were approved on division.

123. Amendment 5, “Section 1 (definition of “executive officer”)”. Amendment 6, “After section 1”, Amendment 7, “Paragraph 3(2)(a)”, Amendment 8, “Paragraph 3(2)(b)”, and Amendment 9, “After paragraph 4(l)(c)”, were approved on division.

124. Amendment 10, “Subsection 5(2)”. Amendment 11, “Paragraph 5(3)(a)” Amendment 12, “Paragraph 5(3)(c)”, Amendment 13, “After Subsection 5(3)”, Amendment 14, “Subsection 6(2)”, and Amendment 15, “Subsection 6(4)”, were approved on division.

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125. Amendment 16, “Subsection 8(1)”, Amendment 17, “Subsection 11(1)”. Amendment 18, “After paragraph ll(l)(ba)”. Amendment 19, “Subsection 11(2)”. Amendment 20, “Subsection 12(1)”, Amendment 21, “Subsection 14(3)”. Amendment 22, “Subsection 15(2)”, Amendment 23, “Subsection 18(2)”, Amendment 24, “Subsection 20(3)”, Amendment 25, “Subsection 22(4)”, Amendment 26, “Subsection 23(3)”. and Amendment 27, “Section 24”, were approved on division.

126. Amendment 28, “Subsection 25(4)”, Amendment 29, “Subsection 26(6)”, Amendment 30, “Subsection 28(4)”, and Amendment 31, “After section 29”, were approved on division.

127. Amendment 32, “Subsection 35(5)”, Amendment 33, “Section 41”, and Amendment 34, “Section 42”, were approved on division.

128. Amendment 35, “Transitional provision for certain licensee information”, and Amendment 36, “Transitional provision for licences” with correction taken were approved on division.



SECOND READING

131. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management moved that the Bill be read a second time and do pass.

132. The motion that the Bill be read the second time and do pass was approved by 33 votes in favor and 5 votes against.

133' Lhe IJ°n' ALAT01raised a Point of order and asked if the sitting could adjourn to allow Members to show their support to the national soccer team.

134. The Hon. Speaker SAIMON asked the consensus of the House.

135. The Hon. Jean Pierre NIRUA, Minister of Education and Member for Port Vila, supported the Hon. ALATOI s request to adjourn the sitting.

136. The sitting was adjourned at 2.55 p.m.

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SECOND EXTRAORDINARY SESSION OF 2017FRIDAY 24th NOVEMBER 2017

SPEAKER : The Hon. Toara Daniel KALO, Second Deputy Speaker and Memberfor Shepherds


ABSENT : The Hon. Bruno LENGKON, Member for AmbrymThe Hon. Edwin Amblus MACREVETH, Member for SantoThe Hon. Nakou NATUMAN, Member for Tanna The Hon. Esmon SALMON, Member for Malekula

LATE :

1. The sitting commenced at 9:20 a.m.

2. The Hon. Albert WILLIAMS, Member for Ambrym said the prayer.

3. The Hon. Speaker read the agenda of the day.

4. The Hon. GILLION William, Leader of Government Business and Member for Efate indicated the next bill.

BILL FOR THE PROCEEDS OF CRIME (AMENDMENT) ACT NO. OF 2017

FIRST READING

5. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services and Member for Santo introduced and explained the purpose of the amendment and moved the Bill to first reading.

6. The Hon. ALATOI Ishmael Kalsakau, Leader of Opposition and Member for Port Vila acknowledged the Minister on the bill. He stated that this bill must protect the integrity of Vanuatu from money laundering. He said that confiscated cash should become a benefit to our development rather than returning it to countries concerned. He declared that the Opposition would vote against the bill.

7. The Hon. Andrew NAPUAT, Member for Tanna disagreed that the proceeds of crime be shared with other countries, when the investigations are being done by Vanuatu.

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8. The Hon. Albert WILLIAMS proposed a parliamentary amendment for any assets confiscated out of crime to be retained as a state asset. He wanted to know if there were any report of current illegal transactions as it has not been done before.

9. The Hon. Minister KALMASEI replied that as a Member of the international organization, Vanuatu has to amend its laws according to the global requirement to exit from the grey list. He also said that FATF procedures requires all monies confiscated under criminal activity to return.

10. The Hon. Bob LOUGHMAN, Government Whip and Member for Tanna requested a morning tea break.

11. The sitting was suspended at 1 Oa.m and resumed at 10.30 a.m

12. The Hon. Ephraim KALSAKAU, Member for Port Vila, asked whether, despite the changes in taxation, Vanuatu would continue to progress because the amendments in this Bill will affect the work related to it. He added that those responsible for criminal decisions must also be held liable regardless of their nationality.

13. The Hon. Marcellino BARTHELEMY, Member for Malekula, thanked the Minister for introducing the Bill and said he agreed with the comments made by the Hon. Member for Tanna that Vanuatu should benefit from financial transactions.

14. The Hon. Francois Chani TABISAL, Member for Pentecost, also said Vanuatu should benefit from financial transactions and if it is and becomes an illegal activity; the money will be kept in the country.

15. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services and Member for Santo, explained that the role of the Court was to decide who would be responsible for transferring money. In the explanatory note, he pointed out that amendments were derived from financial and judicial jurisdiction that should be complied with to determine the beneficiary of the money.

16. The Hon. Sato KILMAN, Member for Malekula, thanked the Minister for the Bill and emphasized the primary intention of the Act, which was not to generate money but to arrest criminals. He then asked why Vanuatu was obliged to transfer money out of the country while it is ‘ dirty' and added that the Law must be able to propose a beneficial solution. He said to understand that the Bill was an urgent matter; however, it was important to also consider the interest of the country. He finally joined his colleagues in congratulating the team for their efforts behind the Bill.

17. The Hon. Jotham NAP AT, Minister of Infrastructure and Public Utilities and Member for Tanna, referred to division 2- 82(b), then congratulated the Minister for introducing the Bill because it was about time the country fought against such crimes. Concerning the profits previously mentioned by the Members, he said such proposal allowed the country to sanction activities that do not follow the process.

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18. The Hon. Christopher EMELEE spoke in favor of the Bill and asked why the Government was targeting receiving countries but not departing country. He wanted to know if this could be a result of lack of control system.

19. The Hon. Leader of Opposition ALATOI insisted on introducing a Bill that will keep the money in the country so that Courts can make a decision based on it.

20. The Hon. Minister KALMASEI said the Bill was fairly clear but said he took note of the concern of the Leader of Opposition.

21. The Hon. Prime Minister SALWAI explained that the body that helped with the drafting of the Bill imposed the term ‘choice’.


COMMITTEE STAGE


Amendment 1, “Section 1”

23. Seconded by the Hon. Gillion WILLIAM, Leader of Government Business, the Hon. Minister KALMASEI proposed to move a Parliamentary amendment to delete Section 1 and substitute it with Section 2.

24. The motion was approved by 25 votes in favor and 5 against.

25. Amendment 1, as amended, was approved on division.

26. Seconded by the Hon. WILLIAM, the Hon. Minister KALMASEI moved to make a parliamentary amendment to insert Section 2 (definition of administrator), delete 84, and substitute with 82U.



29. Amendment 3, “Subparagraph 23(1) (b) (iii)”, was approved on division.

30. Amendment 4, “Subparagraph 52(2) (b) (i)”, Amendment 5, “Subsection 52(6)” and Amendment 6, “After section 52”, were approved on division.

31. Amendment 7, “Subsection 73(3)” and Amendment 8, “After section 73”, were approved on division.

32. Amendment 9, “At the end of section 82A”, Amendment 10, “Section 82D” and Amendment 11, “At the end of section 82H”, were approved on division.

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Amendment 12, “After Part 5B”

33. Seconded by the Hon. WILLIAM, the Hon. Minister KALMASEI, moved to make a Parliamentary amendment on paragraph 82Q (a) by deleting ‘amounts’ and substituting with ‘monies’.


35. The Hon. Joe NATUMAN, Deputy Prime Minister and Minister of Trade, Commerce and Industry and Member for Tanna, explained that the money collected be deposited in the confiscated assets fund and the Country(s) claiming to be the beneficiary must follow the prescribed process.

36. The Hon. KILMAN sought clarification on section 82Q (b).

37. The Hon. Minister KALMASEI stated that the process of redistributing confiscated monies was prescribed under section 82N. He added that its definition is set out in the explanatory note.

38. The Hon. Leader of Opposition ALATOI explained that a credit would be implied in the Government appropriation.

39. The Hon. Ephraim KALSAKAU said to support the amendments but warned the House about financial embezzlement.

40. The Hon. Minister KALMASEI pointed out that the explanation was clear and that subsection 82Q (d) would answer the points raised by the Hon. Ephraim KALSAKAU.


42. Amendment 13, “Section 84”, was approved on division.



SECOND READING

45. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services, thanked the House for its contribution and then moved that the Bill be read the second time and do pass.

46. The motion that the Bill be read a second time and do pass was approved by 26 votes in favor and 3 against.

47. The sitting was suspended at 11.25a.m and resumed at 2.40 p.m.

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48. The Hon. Gillion WILLIAM, LOGB indicated the next bill.

BILL FOR THE ENVIRONMENTAL PROTECTION AND CONSERVATION (AMENDMENT) ACT NO. OF 2017

FIRST READING

49. The Hon. Ham LINI, Minister of Climate Change, Adaptation, Meteorology, GeoHazards, Environment and Energy, and Member for Pentecost introduced the Bill, explained the purpose of the amendment and then moved the Bill to first reading.

50. The Hon. Albert WILLIAMS, Member for Ambrym spoke in support of the bill and declared his interest as a consultant. He said that EIA procedures prolongs business licenses delivery times and delay project implementations. While he agreed that EIA is vital for environmental protection, he said that cost of doing business is high.

51. The Hon. Joshua KALSAKAU, Member for Efate, asked the Hon. Ralph REGENVANU, Minister of Lands and Member for Port Vila to clarify whether land reclaims along the coast of Efate were approved through the EIA process.

52. The Hon. Andrew NAPUAT, Member for Tanna said that as a Parliament Secretary for Development, he thought that it is timely for such programs to be decentralized to the islands.

53. The Hon. Ham LINI replied that the amendment would allow most government projects to be implemented through the EIA process.

54. The Hon. Jotham NAP AT spoke in support of the bill. He said the amendment establishes a review committee to protect and assist the Government to setup its projects.

55. The Hon. Francois Chani TABISAL spoke in support of the bill and said the amendment will protect all projects and developments.

56. The Hon. Fred TASSO, Deputy Leader of Opposition and Member for Paama, asked if an amendment be made to facilitate the EIA of shipwrecks.

57. The Hon. Ralph REGENVANU, Minister of Lands, Geology and Natural Resources and Member for Port Vila spoke in support of the bill. He stated that all land leases end at the watermark, however, any development beyond the watermark must be approved by the custom owner. He added that Government lands does not need such approval.

58. The Hon. Minister LINI thanked the Members on their comments and said that the amendment would contribute to the country’s development.

59. The Hon. Christopher EMELEE wanted to know when the law passed in 2013 about human waste on the sea would be enforced.

60. The Hon. Ephraim KALSAKAU, Member for Port Vila said that environmental protection has been a common practice of our ancestors. He hoped that the Ambae

19

disaster report will be released soon, and stated that the EIA report should be done annually.

61. The motion that the Bill be read the first time was approved unanimously.

COMMITTEE STAGE

Section 1, ‘Amendment’

62. Amendment 1, “Section 1”, Amendment 2, “Section 2”, Amendment 3, “Section 2 (Definition of “preliminary environmental assessment”, “project proponent” and “significant environmental impact”)”, and Amendment 4, “Part 3, Division 1 (Heading)”, Amendment 5, “Section 11” were approved unanimously.

63. Amendment 6, “Sections 12 and 12A”, Amendment 7, “Section 13 (Heading)”, Amendment 8, “Section 13”, and Amendment 9, “After section 13” were approved unanimously.

64. Amendment 10, “After section 13A”, and Amendment 11, “Section 14” were approved unanimously.

65. Amendment 12, “At the end of section 14A”, and Amendment 13, “Section 18” were approved unanimously.

66. Amendment 14, “Section 19 (Heading)”, Amendment 15, “Subsections 19 (3) and ££1”, Amendment 16, “Subsection 19(1)”, Amendment 17, “After subsection 19(3)”. Amendment 18, “Subsection 19(4)”, Amendment 19, “Subsection 19(5)”. Amendment 20, “After section 19”, and Amendment 21, “Sections 20 and 21” were approved unanimously.

67. Amendment 22, “Section 22”, Amendment 23, “Part 3, Division 3 (Heading)”, Amendment 24, “Sections 24 and 25”, Amendment 25, “Subsection 26(1)”. and Amendment 26, “Subsection 26(2)” were approved unanimously.

68. Amendment 27, “Paragraph 26(2)(b)”. Amendment 28, “Section 27”. Amendment 29, “Section 28 (Heading)”, Amendment 30, “Subsection 28(1) and (2)”, Amendment 31, “Paragraphs 41(l)(a),(b),(c) and (d)”. Amendment 32, “After paragraph 41(l)(c)”. Amendment 33, “Subsection 41(2)”, Amendment 34, “After paragraph 42A(l)(i)”. Amendment 35, “Paragraph 43(1)00” and Amendment 36, “Paragraphs 43(l)(b) and £c)” were approved unanimously.

69. Amendment 37, “After paragraph 44B(2)(e)”. Amendment 38, “Paragraph 44B(2)(f)”. and Amendment 39, “After section 44B” were approved unanimously.

70. Section 1, was approved unanimously.

71. Section 2, “Commencement” was approved unanimously.

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SECOND READING

72. The Hon. Ham LINI, Minister of Climate Change, Adaptation, Meteorology, GeoHazards, Environment and Energy thanked the House for their support and moved that the Bill be read a second time and do pass.

73. The motion that the Bill be read a second time and do pass was approved unanimously.


BILL FOR THE EXTRADITION (AMENDMENT) ACT NO. OF 2017

75. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services and Member for Efate introduced the bill, stated the reasons for the amendment, and then moved the bill to first reading.

76. The Hon. Andrew NAPUAT, Member for Tanna wondered if there was any time limit to the phrase 1 ....as soon as practicable... ’

77. The Hon. Minister KALMASEI replied that the phrase allows the public prosecutor to complete its tasks as soon as possible.

78. The Hon. Silas Bule MELVE, Member for Pentecost, spoke in support of the bill. He then asked for clarifications on the functions of the Attorney General and the Public Prosecutor.

79. The Hon. Minister KALMASEI replied that the amendment would make it more convenient and effective for the Public Prosecutor to prosecute as well as deal with the extradition.


COMMITTEE STAGE

Section 1, ‘Amendments’

Amendment 1, “Whole of the Act”. Amendment 2, “Paragraph 9(l)(a)”, Amendment 3, “Paragraph 60(4)(a)”

81. The Hon. Christopher EMELEE referred to the phrase, ‘... .as soon as practicable and asked that it will be on whose cost if it is prolonged.

82. The Hon. Minister KALMASEI said that '...as soon as practicable' depends on the judiciaries process. However, the cost would be determined by the Public Prosecutor.

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83. Amendment 1, “Whole of the Act”, Amendment 2, “Paragraph 9(l)(a)”. Amendment 3, “Paragraph 60(4)(a)”, were approved on division


85. Section 2, ‘Commencement’ was approved on division.

SECOND READING

86. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services thanked both sides of the House for their support and moved the bill to second reading and do pass.


88. The sitting was adjourned at 4 p.m.

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MONDAY 27 NOVEMBER 2017

SPEAKER The Hon. Esmon SALMON, Member for Maleukla

PRESENT 46 Members

ABSENT The Hon. Marc ATI, Member for LuganvilleThe Hon. Joshua KALSAKAU, Member for EfateThe Hon. Bruno LENGKON, Member for AmbrymThe Hon. Edwin Amblus MACREVETH, Member for SantoThe Hon. Hosea NEVU, Member for Santo

LATE


2. The Hon. Johnny KOANAPO, Member for Tanna, said the prayer.

3. The Hon. Speaker SALMON read the agenda.

4. The Hon. Gillion WILLIAM, Leader of Government Business and Member for Efate, requested suspension of the sitting until 2.00p.m due to the invitation the Members have received.

5. The sitting was suspended at 9.00a.m and resumed at 2.25p.m.


BILL FOR THE MUTUAL FUNDS (AMENDMENT) ACT NO OF 2017

FIRST READING

7. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management and Member for Santo, introduced the Bill, stated the reasons for the amendments and then moved that the Bill be read a first time.

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8. The Hon. Albert WILLIAMS, Member for Ambrym, spoke in favor of the Bill and then asked how many mutual funds were registered in Vanuatu. He then suggested that they be managed in order to graduate from the grey list.

9. The Hon. Minister PIKIOUNE replied that according to the Vanuatu Financial Services Commission (VFSC) there is only one registered mutual fund.

10. The Hon. Fred TASSO, Deputy Leader of Opposition and Member for Paama, said that the requirements come from the FATF, and then asked why Vanuatu did not have its own standards to avoid being led by such activities. He emphasized that it seems that the Government was trying to insert international regulations into the local Law and for that reason, the Opposition will vote against the Bill.

11. The Hon. WILLIAMS thanked the Minister for his response and said he did not see any point in making further changes to the Law since there was only one investment fund established in Vanuatu. He then asked whether this change was due to problems faced or interest in attracting more investment funds.

12. The Hon. Minister PIKIOUNE said the existing Law was likely to attract businesspersons seeking to clean money. However, he said, since Vanuatu was part of the Global Community, it must put in place laws that will prevent it from money laundering.

13. The Hon. Francois Chani TABISAL, Member for Pentecost, also spoke in favor of the Bill and said that to his understanding, this Bill will attract real investors and business in terms of trust. He then stressed the importance of protecting Vanuatu’s image, as this Bill will open new doors for the Country.

14. The Hon. TASSO referred to the comment made by Hon. CHANI and recommended that the country should repair its own damages instead of having other countries repair them for it.

15. The Hon. Andrew NAPUAT, Member for Tanna, spoke in favor of the Bill and then questioned the seriousness of the Bill given that the maximum number of years of imprisonment is one year as per paragraph 1.

16. The Hon. Minister PIKIOUNE explained that the main purpose of the Bill was to attract investors. He went on to clarify that technical people have already studied the Bill before submitting it to Parliament for approval.

17. The Hon. ALATOI, Leader of Opposition and Member for Port Vila, began by congratulating the Minister of Education, Hon. Jean Pierre NIRUA for official launching of the project that took place in the morning which allowed future students to achieve their goals. He said the event is an example of focusing on economic growth that will attract foreign students especially, from New Caledonia. He concluded by asking that Leaders maintain the country’s sovereignty instead of being manipulated like puppets.

18. The Hon. Bob LOUGHMAN, Government Whip and Member for Tanna, thanked the Leader of Opposition for his remarks but asked him to withdraw the term ‘puppets.

24

19. The Hon. ALATOI Leader of Opposition explained that he did not refer to them as puppets but the fact that they behave like puppets which literally means this country is still being controlled instead of being independent.

20. The Hon. Chariot SAL WAI, Prime Minister and Member for Pentecost, thanked the Minister for the Bill and said to have taken note of the concerns raised over sovereignty and assured the House that Vanuatu will remain a sovereign State. He explained that Vanuatu’s status as a ‘tax haven’ raises suspicions and that the required requirements will force the Country to reveal secret information. He said that the Bill applied mainly to big businessmen.


COMMITTEE STAGE

Section 1, “Amendments”

22. Amendment 1, “Subsection 1(1)”, Amendment 2, “Subsection 1(1) (definition of controller)”. Amendment 3, “Subsection 1(1) (definition of licensed mutual fund)” and Amendment 4, “After section 1”, were approved on division.

23. Amendment 5, “Paragraph 4(2) (e)”. Amendment 6, “Section 4”, Amendment 7, “Paragraphs 5(2) (a)”. Amendment 8, “Paragraph 5(2) (b)”and Amendment 9, “Paragraph 6(1) (a)”, were approved on division.

24. Amendment 10, “Paragraph 6(2) (a)”. Amendment 11, “After subsection 6(2)” and Amendment 12, “Subparagraph 8(2) (a) (ii)”, were approved on division.

25. Amendment 13, “Subparagraph 8(2) (b) (ii)”. Amendment 14, “At the end of section 8”, Amendment 15, “Subsection 9(1)”, Amendment 16, “Paragraph 9(1) (a)” and Amendment 17, “Paragraph 9(1) (b)”, were approved on division.

26. Amendment 18, “After subsection 9(1)”, Amendment 19, “After section 10”, Amendment 20, “Subsection 11(4)” and Amendment 21, “Subsection 13(3)”, were approved on division.

27. Amendment 22, “After section 18”, Amendment 23, “Section 19 (heading)”. Amendment 24, “Subsection 19(1)” and Amendment 25, “After paragraph 19(1) (a)”, were approved on division.

28. Amendment 26, “Subsection 19(2)” and Amendment 27, “Sections 23,24 and 25”, were approved on division.

29. Amendment 28, “Section 27” and Amendment 29, “Transitional provisions for certain licensee information”, were approved on division.



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SECOND READING

32. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, thanked the House for their support and then moved that the Bill be read a second time and do pass.


34. The Hon. Gillion WILLIAM, LOGB read the next bill.

BILL FOR THE INSURANCE (AMENDMENT) ACT NO. OF 2017

FIRST READING


36. The Hon. Ephraim KALSAKAU, Member for Port Vila, said he had realized that Vanuatu was committed to taking on a responsibility in which it was not capable of, and then he asked how much its implementation would cost the country.

37. The Hon. Christopher EMELEE, Member for Torres, said he understood and supported the Bill, however, he asked whether the Government intended to establish an Ombudsman for the insurance sector.

38. The Hon. Leader of Opposition ALATOI asked why the Bill included the definition of FATF and if that meant that there was no other choice but to accept and be slaves of it. He then declared that the Opposition would not support the Bill.

39. The Hon. NAPUAT thanked the Minister for the Bill and all the other Bills that will facilitate the process, however, it would be better to have all public transports pay their insurances. He added that despite the good intentions behind this Bill, the challenge remains to convince insurers to cover repairs of vehicles. He then asked what the Government proposed to facilitate this process.

40. The Hon. TABISAL asked the Minister to identify the source of funding for the implementation of these requirements. He then proposed the establishment of an agency that will determine whether the funding would be paid by taxpayers or insurance companies.

41. The Hon. Minister PIKIOUNE announced that a donor fund of Vt22 million has been injected in addition to the Vt47 million that was allocated by the Vanuatu Government to implement the requirements of the FATF. He added that the funds also include the need of technical staff. Regarding insurance, he confirmed that the Bill only concerns the requirement of the FATF and then asked that the House to consider the issues later.

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42. The Hon. TABISAL said he was not satisfied with the response provided by the Minister and suggested that a tax levy be put in place to finance the permanent cost so that it will not burden taxpayers.

43. The Hon. Leader of Opposition ALATOI insisted on knowing why the definition of the FATF was included.

44. The Hon. Minister PIKIOUNE explained that the definition of FATF could be found in all FATF Bills. He further explained that next year’s budget would include all costings. He then said that perhaps after the approval of the FATF Bills, the Government would look into the tax levy system.

45. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services and Member for Santo, supplemented that the inclusion of the FAFT definition serves no further explanation to the Bill.

46. The Hon. Leader of Opposition ALATOI asked whether the Bill has been drafted externally but only required Vanuatu’s conformity.

47. The Hon. TASSO pointed out that Laws that have been approved have not been implemented yet and then called for realism.

48. The motion that the Bill be read a first time was approved by 30 votes in favor and 4v against.

COMMITTEE STAGE


49. Amendment 1, “Whole of the Act” and Amendment 2, “Subsection 1(1)”, was approved on division.

50. Amendment 3, “Subsection 1(1) (definition of Board)”, Amendment 4, “Subsection 1(1) (definition of Governor)”, Amendment 5, “Subsection 1(1) (definition of key individual)”. Amendment 6, “At the end of section 1”, Amendment 7, “After subsection 6(1)” and Amendment 8, “Subsection 6(4)”, were approved on division.

51. Amendment 9, “At the end of section 6” and Amendment 10, “After subsection 7(2)”, were approved on division.

52. Amendment 11, “At the end of section 7”, Amendment 12, “Paragraph 9(b)”, Amendment 13, “Section 12”, Amendment 14, “After paragraph 13(1) (b)” and Amendment 15, “After section 13”, were approved on division.

53. Amendment 16, “Paragraph 17(2) (b)”. Amendment 17, “Paragraph 18(4) (a)” and Amendment 18, “After subsection 18(4)”, were approved on division.

’ 54. Amendment 19, “Paragraph 20(3) (a)”. Amendment 20, “Subparagraph 20(3) (b) (jj)”. Amendment 21, “At the end of section 20”, Amendment 22, “Subsection 25(1)”,

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Amendment 23, “After paragraph 27(1) (c~>” and Amendment 24, “After subsection Sim”, were approved on division.

55. Amendment 25, “Paragraph 85(2) (c)”, Amendment 26, “Part 14”, Amendment 27, “Subsection 92(1)”, Amendment 28, “Subparagraph 95(i)”, Amendment 29, “Subparagraph 95(ii)”, Amendment 30, “Subparagraph 96(i)”, Amendment 31, “Subparagraph 96(ii)”, Amendment 32, “Section 103” and Amendment 33, “Transitional provision for certain licensee information”, were approved on division.



SECOND READING

58. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, thanked the House for their contributions and then moved that the Bill be read a second time and do pass.



BILL FOR THE GAMING (CONTROL) (AMENDMENT) ACT NO. OF 2017

FIRST READING

61. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, introduced the Bill, stated the reasons for the amendment and then moved that the Bill be read a first time.

62. The Hon. Leader of Opposition ALATOI said he presumed that the reason for including the definition of FATF was to avoid making any changes before the Bill is approved. He said the power given to the Minister has been transferred to the Director whereby the FATF was responsible for. He appealed to the people of Vanuatu to trust the Minister and declared that the Opposition will maintain their vote against the Bill.

63. The Hon. EMELEE asked if the Money-Laundering Bill would be introduced in Parliament, and said to be careful not to put Vanuatu in a place where it would find it difficult to generate income and then depend on other countries.

64. The Hon. Minister PIKIOUNE thanked the Leader of Opposition for his point of view and reassured him that this was not the intention of the Bill. He explained that the power was transferred to managers because they act as regulators. Regarding the concerns of the Hon. EMELEE, he said to have taken note of them then stressed that it was important to address the country’s graduation from the grey list first then address other issues later.

65. The Hon. Ephraim KALSAKAU said the transfer of power from the Minister to the Director might be a damage of integrity.

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66. The Hon. Minister KALMASEI explained that this Bill did not focus on the competence of Leaders but that of which Vanuatu was still part of the grey list. He then asked the Opposition to make proposals instead of criticizing the efforts made by the Government.

67. The Hon. Prime Minister SALWAI said the transfer of power was due to the need for coherence in the process. However, he said the application process remained the same.

68. The Hon. WILLIAMS said the transferred powers were not because of underestimation but to safeguard the power of decision-making.

69. The Hon. TASSO said the job of the Opposition was to remind the Government of its sovereignty.

70. The Hon. Jean Pierre NIRUA, Minister of Education and Member for Tanna, thanked the Leader of Opposition for his acknowledgement concerning the progress made by his Ministry. Concerning the Bill, he said the Government’s responsibility was to ensure it gets through. He then confirmed that there were loopholes, however, necessary changes will be made along the way for the best interest of this country.


COMMITTEE STAGE


72. Amendment 1, “Section 1”, was approved on division.

73. Amendment 2, “Section 1 (Paragraph (c) of the definition of game of chance)”. Amendment 3, “After section 1”, Amendment 4, “After section 3” and Amendment 5, “Section 4”, was approved on division.

74. Amendment 6, “Subsection 5(2)”, Amendment 7, “Subsection 5A(1)”, Amendment 8, “Section 5AA”, Amendment 9, “Subsection 5C (1)”, Amendment 10, “Subsection 5C (3)”, Amendment 11, “Section 7 (heading)”. Amendment 12, “Subsection 7(1)” and Amendment 13, “Paragraph 7(1) (b)”, were approved on division.

75. Amendment 14, “After paragraph 7(1) (g)”. Amendment 15, “After subsection 7(1)” and Amendment 16, “After section 8”, were approved on division.

76. Amendment 17, “Subsection 9(1)”, Amendment 18, “Subsection 9(1A)”, Amendment 19, “Transitional provision for certain licensee information” and Amendment 20, “Transitional provision for gaming licenses”, were approved on division.



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SECOND READING

79. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, thanked the House for their contributions and then moved that the Bill be read the second time and do pass.


81. The sitting was adjourned at 4.25p.m.

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SECOND EXTRAORDINARY SESSION OF 2017TUESDAY 28th NOVEMBER 2017

SPEAKER : The Hon. Esmon SAIMON, Member for Malekula


ABSENT : The Hon. Jerome LUDVAUNE, Member for MalekulaThe Hon. Edwin Amblus MACREVETH, Member for Santo The Hon. Jay NGWELE, Member for Ambae The Hon. Samson SAMSEN, Member for Santo

LATE :

1. The sitting commenced at 9.05 a.m.

2. The Hon. Toara Daniel KALO, Second Deputy Speaker and Member for Shepherds said the prayer

3. The Hon. Speaker SAIMON read the agenda of the day.

4. The Hon. Gillion WILLIAM LOGB indicated the bill to be debated.

BILL FOR THE LOTTERIES (AMENDMENT) ACT NO. OF 2017

FIRST READING

5. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management and Member for Santo introduced the bill, explained the purpose of the amendment and moved the Bill to first reading.

6. The Lion. ALATOI Ishmael Kalsakau, Leader of Opposition and Member for Port Vila, raised his concern over the removal the Minister’s executive power to Public Servants. He stated that a State Minister determines the country’s sovereignty and should control and decide on the affairs of the country. He thought the bill would turnout negatively, thus, he advocated that the Minister’s decisions must be based on integrity and respect other than politics. He declared that the opposition would vote against the bill.

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7. The Hon. Sato KILMAN, Member for Malekula, was worried that removing powers from Ministers is undermining the sovereignty of our nation. He continued that it must be reconsidered as powers are being removed from most capable and qualified Ministers. He said that most of these amendments are not necessary to remove Vanuatu from the grey list.

8. The Hon. Ephraim KALSAKAU, Member for Port Vila, said that FATF has a tactic of intimidating small nations. He said that DGs were never been held liable for any wrong decision.

9. The Hon. Joshua KALSAKAU, Member for Efate, said that Vanuatu’s independence is useless with such bills that is influenced by foreign politics. He asked if there were any other solutions of exiting the grey list other than following the FATF requirements. He was also worried that civil servants can be easily manipulated with decision-makings that can affect the nation.

10. The Hon. Andrew NAPUAT, Member for Tanna said that he would support the bill forVanuatu to exit the grey list. He suggested that the FATF committee should include Members of Parliament to fight for justice in the decision of grey listing countries. He also suggested that Vanuatu could exit from such organizations if it has its own mechanisms of dealing with such criminal activities.

11. The Hon. Minister PIKIOUNE thanked the Members for their comments and said that the priority effort of the Government is to exit the grey list.

12. The Hon. Christopher EMELEE, Member for Torres said that all Members should vote for the bill since it has been delayed for four years.

13. The Hon. Hosea NEVU, Member for Santo asked the Minister to clarify the reasons that puts us in the grey list, so that we can find options to exit from it.

14. The Hon. Bruno LENGKON, Minister of Foreign Affairs and External Trade and Member for Ambrym stated that the bill is necessary for our graduation on 4 December 2020.

15. The Hon. Chariot SALWAI, Prime Minister and Member for Pentecost said that foreign countries have concerns that currencies might be hidden in tax haven countries such as Vanuatu. He explained that though we might not benefit from it, our reputation is at risk. Thus, these bills are the only options to exit from the grey list. He added that the Minister still has the power to control DGs if there were any misuse of power.


COMMITTEE STAGE


17. Amendment 1, “Whole of the Act (except subsections 15B(2) and (4), and section 32)”, and Amendment 2, “Subsection 1(1)” were approved on division.

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Amendment 3, “At the end of section 1”, Amendment 4, “Section 15C”, Amendment 5, “Subsection 16(3)”, Amendment 6, “Section 18”

18. The Hon. Albert WILLIAMS, Member for Ambrym, enquired whether the bill also addressed lottery cases such as Au Bon Marche.

19. The Hon. ALATOI suggested if the Minister could make an amendment to change DGs to Ministers in the bill.

20. The Hon. Tom NOAM Iouniwan, Member for Tanna, referred to amendment 4 and 5 and wanted to know how many license have been granted, and if they were overseas or domestic licenses.

21. The Hon. PIKIOUNE replied that technicians would be reviewing Au Bon Marche if they have to be included as well. He replied to the Hon. ALATOI that the purpose of the bill is to give power to DGs. He finally responded to the Hon. NOAM that it was foreign licenses.

22. Amendment 3, Amendment 4, Amendment 5, and Amendment 6 were approved on division.

23. Amendment 7, “After section 20B”, Amendment 8, “Subsection 26(1)”, Amendment 9, “Subsection 26(2)”, Amendment 10, “Section 27”, Amendment 11, “After Part 5” were approved on division.

Amendment 12, “After Section 28”, Amendment 13, “Transitional provision for certain licensee information”. Amendment 14, “Transitional provision for certain licenses”

24. The Hon. KILMAN asked if section 12 also has any penalty for information that should not be disclosed.

25. The Hon. PIKIOUNE Minister that took note of the Member’s comment.

26. Amendment 12, Amendment 13, and Amendment 14 were approved on division.


28. Section 2, “Commencement” as approved on division.

SECOND READING

29. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management thanked the house for their comments and moved that the Bill be read a second time and do pass.


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31. The Hon. Gillion WILLIAM, LOGB indicated the next bill.

BILL FOR THE E-BUSINESS (AMENDMENT) ACT NO. OF 2017

FIRST READING

32. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management and Member for Santo Rural introduced the bill, explained the purpose of the amendment and moved the bill to first reading.

33. The Hon. ALATOI Ishmael Kalsakau, Leader of Opposition and Member for Port Vila said that people have the confidence in how the Supreme Court discloses information. However, he was worried that investors will lose that confidence if many places have the right to disclose information. He then declared that the opposition would vote against the bill.

34. The Hon. Francois Chani TABISAL, Member for Pentecost wanted to know if the bill covers both E-Business and E-Commerce.

35. The Hon. PIKIOUNE replied that there were no company registered under E-Commerce. He then referred to the definition of E-Business for clarifications.

36. The motion that the bill be read the first time was approved by 24 votes in favor and 5 votes against.

COMMITTEE STAGE


37. Amendment 1, “Whole of the Act (except the definition of Minister in section 1 and section 19”. and Amendment 2, “Section 1” were approved on division.

38. Amendment 3, “Section 1 (definition of Financial Transactions Reporting Act)”. Amendment 4, “After section 1”. and Amendment 5, “After Part 3” were approved on division.

39. Amendment 6, “Section 18”. and Amendment 7, “Transitional provision for certain licensee information” were approved on division.



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SECOND READING

42. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management thanked the support of the Members and moved that the Bill be read a second time and do pass.


44. The sitting was suspended at 10.30 a.m. and resumed at 11. 05 a.m.

45. The Gillion WILLIAM, LOGB indicated the next bill.

BILL FOR THE CREDIT UNIONS (AMENDMENT) ACT NO. OF 2017

FIRST READING

46. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management and Member for Santo Rural introduced the bill, explained the purpose of the amendment and moved the bill to first reading.

47. The Hon. Ephraim KALSAKAU, Member for Port Vila, said that the bill would make living difficult for our people. He wanted to know how many credit unions exists in Vanuatu. He then declared that he would not support the bill.

48. The Hon. Minister PIKIOUNE replied that the bill enforces the market of credit unions to remove Vanuatu from the grey list. He added that there are 5 registered credit unions in Vanuatu.


COMMITTEE STAGE


50. Amendment 1, “Section 1”, Amendment 2, “Section 1 (definition of officer)”, and Amendment 3, “After section 1” were approved on division.

51. Amendment 4, “After paragraph 8(2)(c)”, Amendment 5, “Section 8”, Amendment 6, “After paragraph 9(l)(b)”. Amendment 7, “After subsection 9(1)”, and Amendment 8, “After section 11” were approved on division.

52. Amendment 9, “After section 34” Amendment 10, “Section 37”, Amendment 11, “After paragraph 52(l)(b)”, Amendment 12, “Subsection 52(9)”. Amendment 13, “Section 53”, Amendment 14, “After paragraph 57C(3)(b)” were approved on division.

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53. Amendment 15, “Section 57C”. Amendment 16, “After paragraph 57D(3)(b)”, Amendment 17, “After subsection”, and Amendment 18, “At the end of Part 10” were approved on division.

54. Amendment 19, “Subsection 69(1)”. Amendment 20, “After subsection 69(1)”. and Amendment 21, “Subsection 70(1)” were approved on division.

55. Amendment 22, “Subsection 70(2)”, Amendment 23, “After section 70”. Amendment24, “Transitional provision for certain credit union information”, and Amendment25, “Transitional provision for certain League information” were approved on division.



SECOND READING

58. The Hon. Gaetan PIKIOUNE thanked both sides of the House for their support and moved that the bill be read the second time and do pass.


60. The sitting was suspended at 11.25 a.m. and resumed at 2.40p.m.


BILL FOR THE COMPANIES (AMENDMENT) ACT NO. OF 2017

FIRST READING


63. The Hon. Albert WILLIAMS, Member for Ambrym, spoke in favor of the FATF-related Bill and said he noted that the Bill was an updated version of the FATF requirements, which should facilitate its implementation in the country’s jurisdiction. He then informed the House that he had the latest version of the FATF recommendations in case a Member wished to obtain a copy.

64. The Hon. Ephraim KALSAKAU, said he did not understand the reason that obliged the country to impose these regulations on investors. He added that this could lead to losing Vanuatu’s sovereignty. He also declared the Opposition’s disappointment because this was not included in the drafting of the Bill, therefore, they will vote against.

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65. The Hon. Christopher EMELEE, Member for Torres, asked the Minister to state how many staff were working under the FATF, and then recommended that the Government be more rigorous in its decision-making.

66. The Hon Minister PIKIOUNE said he was unsure of the number of staff working under the FATF, however, he added that 15 people were working in the Financial Intelligence Unit (FIU) taking into account those who are working under the Vanuatu Financial Services Commission (VFSC) and the Reserve Bank of Vanuatu (RBV). He stated that there was a need to strengthen these areas by strengthening its work force.


COMMITTEE STAGE


68. Amendment 1, “Section 1”, Amendment 2, “After paragraph 6(3) (g)”, Amendment 3, “After section 25” and Amendment 4, “Division 9 of Part 3 (heading)”, were approved on division.

69. Amendment 5, “Section 37 (Heading)”, Amendment 6, “Subsection 37(1)”, Amendment 7, “Subsection 37(2)”, Amendment 8, “Subsections 37(2)”, Amendment 9, “Subsection 37(4)”, Amendment 10, “Subsection 39(1)”, Amendment 11, “Paragraph 39(1) (a)”, Amendment 12, “Paragraph 39(1) (c)”. Amendment 13, “Subsection 39(4)” and Amendment 14, “Paragraph 113(1) (d)”, were approved on division.

70. Amendment 15, “Subsection 113(5)”, Amendment 16, “Section 140”, Amendment 17, “Section 141” and Amendment 18, “Section 142”, were approved on division.

71. Amendment 19, “Subsection 143(1)”, Amendment 20, “Subsection 143(2)”, Amendment 21, “Subsection 150(1)”, Amendment 22, “Paragraph 157(2) (b)”. Amendment 23, “After paragraph 157(2) (b)”. Amendment 24, “Paragraph 160(1) (a)”. Amendment 25, “After paragraph 160(1) (a)”. Amendment 26, “Subsection 160(2)”, Amendment 27, “Paragraph 176(1) (b)” and Amendment 28, “Subsections 176(3), 178(3) and 179(2)”, were approved on division.

72. Amendment 29, “After section 180”, Amendment 30, “Section 181” and Amendment 31, “Section 183”, were approved on division.

73. The Hon. Leader of Opposition ALATOI referred to section 183 concerning the disclosure of information and said that foreigners were being allowed to retrieve information for their own interests. He then suggested establishing means of protecting investors against disclosure of information.

74. The Hon. Joe NATUMAN, Deputy Prime Minister and Minister of Trade, Commerce, Industry and Tourism and Member for Tanna, stated that according to the Section, the

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Registrar has the power to decide whether the information is to be disclosed. He went on to stress the importance of complying and fighting transnational crimes and create a safer country.

75. Amendment 32, “After section 187”, Amendment 33, “Transitional provisions for bearer shares and bearer share warrants” and Amendment 34, “Transitional provisions for certain information”, were approved on division.



SECOND READING

78. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, thanked both sides of the House for their support and then moved that the Bill be read the second time and do pass.

79. The motion that the Bill be read the second time and do pass was approved by 33 votes in favor and 3 against.


BILL FOR THE CUSTOMS (AMENDMENT) ACT NO. OF 2017

FIRST READING


82. The Hon. Hosea NEVU, Member for Santo, wanted to know how much money has been collected from sized and sold items.

83. The Hon. Minister PIKIOUNE responded that there was a process to follow; however he confirmed that there were many items seized and placed on auction and the money collected from it goes directly into the Government fund.

84. The Hon. Andrew NAPUAT, Member for Tanna, asked if there were any other, Bills that FATF wanted Vanuatu to pass to help it graduate from the grey list. He appealed to the Government and the public to ensure to comply with these Law so that Vanuatu may be able to graduate from the grey list. He then share the Hon. Minister NATUMAN’s remarks about being part of the global community, therefore, it was necessary to collaborate despite having a grace period.

85. The Hon. Minister PIKIOUNE responded that in general, there were 31 FATF Bills and this one is the last one on the list. He stated that implementation of these Bills must start

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now. Meanwhile, an assessment will be carried out to confirm is Vanuatu was still considered as a tax haven.

86. The Hon. EMELEE asked the Minister of this Bill was really the last FATF Bill. He suggested that the Government introduced a Bill to abolish the tax haven system due to the requirements of the FATF.

87. The Hon. PM SALWAI clarified that there were two other FATF- related Bills but they would be evaluated according to the implementation of the approved Bills. He explained that the system allowed businessmen to hide behind nominees, therefore, depending on the functioning of the Government companies must comply with the law. He explained that the high GDP per capita did not reflect the reality because only a small portion of it represented wealth. He insisted that the intention of this Bill was to help Vanuatu out of the grey list instead of taking a step back. Finally, he took the opportunity to thank the Minister for the Bill.


COMMITTEE STAGE


Amendment 1, “After section 159”

89. The Hon. John SALA, Member for Malekula, spoke in favor of the Bill but wondered whether the safety of Customs Officers was considered especially when conducting an operation.

90. The Hon. Minister PIKIOUNE stated that the Hon. SALA had raised a good point; however, the intention of the Bill was to give Customs the right to assist the Police.

91. Amendment 1 was approved on division.



SECOND READING

94. The Hon. Gaetan PIKIOUNE, Minister of Finance and Economic Management, thanked the House for its support and then moved that the Bill be read a second time and do pass.



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BILL FOR THE CO-OPERATIVE SOCIETIES (AMENDMENT) ACT NO. OF 2017

FIRST READING

97. The Hon. Joe NATUMAN, Deputy Prime Minister and Minister of Trade, Commerce, Industry and Tourism, introduced the Bill, stated the reasons for the amendments and then moved that the Bill be read a first time.

98. The Hon. Matai SEREMIAH, Minister of Agriculture, Livestock and Fisheries and Member for Luganville, informed the House of the complaints received from Members of AFIC who are currently finding it difficult to access their accounts. He assumed that this was due to liquidation and asked that people be warned before it is too late.

99. The Hon. EMELEE raised a point of Order and said that the Minister was not entitled to question the Government.

100. The Hon. Ephraim KALSAKAU, Member for Port Vila, declared his disagreement to foreign interference in the country’s economic system, therefore, he would vote against the Bill.

101. The Hon. Andrew NAPUAT, Member for Tanna, stated that with respect to the point of Order raised, he asked the Minister to respond to the Hon. Minister SEREMIAH.

102. The Hon. Minister NATUMAN said this provided for a more transparent system and avoid future financial risk, and that there were more than 300 co-operatives making a profit of VT 800,000 million and paying a dividend of VT 70 million to the Government as Value Added Tax (VAT). According to the query raised by the Hon. Minister SEREMIAH, he explained that the problem faced by AFIC was not that of liquidity but that of the Banks who refused to open an account, as they were not aware where the money was sourcing. He said an audit has been carried out and now awaiting the report of the Reserve Bank so the Minister may intervene. He added that if there were any other questions concerning AFIC, he asked the Members contacted the Co-operatives Department.

103. The Hon. Leader of Opposition ALATOI stated that Members should not lose sight of the Opposition’s argument on the Bill because it was based on the country’s sovereignty, which would be affected if it is allowed free entry. He said the Opposition would vote against.

104. The Hon. EMELEE pointed out that a large amount of money has been brought into the country then asked who was responsible for managing that money. He also pointed out that there were a number of established non-Governmental Organizations that required a better control system.

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105. The Hon. PM SALWAI admitted that if there are suspicions then the Bill allows for disclosure of information that would help during the investigation. He added that the Bill would help strengthen the corporate sector and to ensure money is not laundered in Vanuatu. He also admitted that it was true that NGOs were bringing huge amounts of money into the country and that it was important to know where the money was sourcing. Finally, he announced that another Bill would be tabled to protect consumers from banks.

106. The Hon. Minister NATUMAN explained that the Ministry of Finance might ask NGOs to disclose information; however, the Law does not require it unless authorized by the Courts.


COMMITTEE STAGE


108. Amendment 1, “Section 1”, Amendment 2, “Section 1 (definition of officer)”, Amendment 3, “After section 1 in Parti”, Amendment 4, “At the end of section 5”, and Amendment 5, “Section 7”, were approved on division.

■109. Amendment 6, “After section 11” and Amendment 7, “Section 37”, were approved on : division.

110. Amendment 8, “Paragraphs 39(1) (b) and (c)”, Amendment 9, “Subsections 39(2) and (3}”, Amendment 10, “Section 40” and Amendment 11, “After Part 9”, were approved on division.

111. Amendment 12, “Subsection 58(8)”, Amendment 13, “After section 59” and Amendment 14, “Transitional”, were approved on division.



SECOND READING

114. The Hon. Joe NATUMAN, Deputy Prime Minister and Minister of Trade, Commerce, Industry and Tourism, thanked the House for their support and then moved that the Bill be read the second time and do pass.


116. The sitting was adjourned at 4.35p.m

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SECOND EXTRAORDINARY SESSION OF 2017THURSDAY 30th NOVEMBER 2017

SPEAKER : The Hon. Esmon SAIMON, Member for Malekula


ABSENT : The Hon. Joshua KALSAKAU, Member for EfateThe Hon. Rick Tchamako MAHE, Member for SantoThe Hon. Nakou NATUMAN, Member for TannaThe Hon. Albert WILLIAMS, Member for AmbrymThe Hon. Ian WILSON, Member for Maewo

LATE :

1. The sitting commenced at 9.00 a.m.

2. The Hon. Andrew NAPUAT, Member for Tanna said the prayer

3. The Hon. Speaker read the agenda of the day.

4. The Hon. Gillion WILLIAM, Leader of Government Business and Member for Efate suggested the sitting to suspend for Members to take part on the VASANOC parade.

5. The Hon. Speaker asked the consensus of the house to suspend the sitting.

6. The sitting was suspended at 9.05 a.m. and resumed at 2.30 p.m.


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BILL FOR THE STATUTE LAW (MISCELLANEOUS PROVISIONS) ACT NO. OF 2017

FIRST READING

8. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Community Services and Member for Santo introduced and explain the purpose of the bill and then moved the bill to first reading.

9. The Hon. ALATOI Ishmael Kalsakau, Leader of Opposition and Member for Port Vila, thanked the Minister on the said Bill. He said that policy amendments must be tabled in Parliament separately. He said that the opposition would vote for, if the Ministers concern explain the policy intentions of each amendments.

10. The Hon. Sato KILMAN, Member for Malekula asked if it coincides with the definition of bill of the statute law to include new amendments that will have an effect on the passage of its laws.

11. The Hon. Minister Warsal KALMASEI replied that it was convenient for the State Law to group these minor changes together rather than addressing it separately.


COMMITTEE STAGE


Amendment 1, “Civil Status Act [CAP 61]”

13. The Hon. Minister KALMASEI moved Parliamentary Amendment 1

14. The Hon. ALATOI raised a point of order and wanted to know the reason of the Parliamentary Amendment.

15. The Hon. Minister KALMASEI replied that it was a typing error.

16. The Hon. Ralph REGENVANU, Minister of Lands, Geology and Natural Resources and Member for Port Vila supplemented that (h) Foreign Service Act No. 20 of 2013 and (q) Reserve Bank of Vanuatu Act [CAP 125] were removed from the bill so that it will not be amended. He continued that (n) was supposed to be Public Prosecutor Act [CAP 293] and (t) will be replaced with the Financial Service Commission Act.

17. The Hon. Bob LOUGHMAN said that the Minister has moved but there was no seconder.

18. The Hon. GILLION William seconded the motion.

19. The motion was approved by 33 votes in favor and 6 votes against.

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20. The Hon. ALATOI wanted to know why the two Acts would not be amended.

21. The Hon. Bruno LENGKON, Minister of Foreign Affairs and External Trade and Member for Ambrym said that the Foreign Service Act would come in a separate bill as a policy change.

22. Amendment 1 was approved on division.

23. Amendment 2, “Company and Trust Services Provider Act No. 8 of 2010”, and Amendment 3, “Convention on the Conservation and the Management of High Seas Fisheries Resources in the North Pacific Ocean (Ratification) Act No. 18 of 2016” were approved on division.

24. Amendment 4, “Customs Act No. 7 of 2013” was approved on division.

Amendment 5, “Decentralization Act [Act no. 28 of 2008]”

25. Seconded by the Hon. WILLIAM, the Hon. Minister KALMASEI moved Parliamentary Amendment 2. He also explained that these were errors, whereas policy reasons and matters would be made.

26. The Hon. ALATOI wanted to know whether the Public Service Commission (PSC) stillmakes the appointment or the Council. s

27. The Hon. Alfred MAOH replied that PSC still makes the appointment.

28. The motion was approved by 34 votes in favor and 5 abstentions.


30. Amendment 6, “Family Protection Act No. 28 of2008”, and Amendment 7, “Financial Dealers Licensing Act [CAP 701” were approved on division.

Amendment 8, “Foreign Service Act No. 20 of 2013”

31. Seconded by the Hon. Gillion WILLIAM, the Hon. Minister KALMASEI moved Parliamentary Amendment 3.

32. The motion was approved unanimously.

33. Amendment 8, as amended, was approved unanimously.

34. Amendment 9, “Immigration Act No. 17 of 2010”, Amendment 10, “National Council of Chiefs Act No. 23 of 2006”, and Amendment 11, “Penal Code Act [CAP 135]” were approved on division.

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35. Amendment 12, “Police Act [CAP 105]”, and Amendment 13, “Public Holidays Act [CAP 1141” were approved unanimously.

Amendment 14, “Public Prosecutor’s Act [CAP 2931”


37. The Hon. ALATOI Ishmael Kalsakau referred to section 22(a) and said that there should be some criteria for the Public Prosecutor’s appointment.

38. The Hon. Minister KALMASEI replied that there are no criteria; however, foreigners would only, be approved by the Chief Justice based on the expertise that we lack.



Amendment 15, “Quarry Act No. 9 of 2013”



43. The Hon. Ephraim KALSAKAU, Member for Port Vila wanted to know how many Ni- Vanuatu own quarries in Vanuatu.

44. The Hon. REGENVANU replied that there are 5 Ni-Vanuatu qualified under this section.

45. Amendment 15, as amendment, was approved unanimously.

46. Amendment 16, “Representation of the People Act [CAP 146” was approved unanimously.

Amendment 17, “Reserve Bank of Vanuatu Act [CAP 125]”




Amendment 18, “Road Traffic (Control) Act [CAP 29]”

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50. The Hon. Jotham NAP AT, Minister of Infrastructure and Public Utilities and Member for Tanna clarified that it will empower the Minister to set regulations on the Road Traffic Act.

51. The Hon. Sato KILMAN, Member for Malekula noted that inspections were only done for 2 weeks this year, and asked if it can be enforced and sustained throughout the year

52. The Hon. Minister NAP AT replied that the Public Works is reviewing to privatize this service. He said that this amendment would give the power for the Minster to make such regulations.

53. The Hon. ALATOI said that these inspections must be fair and realistic other than billing people for a minor scrape.

54. Amendment 18 was approved unanimously.

55. Amendment 19, “Telecommunications and Radio communications Regulation Act No. 30 of 2009”, was approved unanimously.

Amendment 20, “Waste Management Act No. 24 of 2014”

56. Seconded by the Hon. WILLIAM, the Hon. Minister KALMASEI moved Parliamentary Amendment 7.

57. The Hon. ALATOI wanted to know why E-Business was inserted.

. • r .t ma<1FI renlied that it was inserted under the Vanuatu Financial58. The Hon. Minister KA £ substituted the Waste Management Act.Service Commission (VrbCj acl

59. The Hon. ALATOI asked for further clarification as to why it was inserted.

60. The Hon. Minister KALMASEI responded that it follows the introduction of E-Business, which was introduced in the previous bills.

61. The Hon. KILMAN wanted to know the significance of E-Business in this Act.

62. The Hon. Minister KALMASEI replied that VFSC Act administers the E-Business Act whereas the Waste Management Act will come separately.

63. The Hon. Gaetan PIKOUNE, Minister of Finance and Economic Management and Member for Santo confirmed that the Hon. KALMASEI s statement then made a correction to an error for CAP 229 instead of CAP 299.

64. The Hon. ALATOI said that there must be a motion for the correction.

65. Seconded by the Hon. Gillion WILLIAM, the Hon. Minister KALMASEI moved the correction to substituted CAP 299 with CAP 229.

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66. The motion was approved by 33 votes in favor and 5 votes against.

67. The motion for the Parliamentary Amendment 7 was approved unanimously.

68. Amendment 20, was approved unanimously.

69. Section 1, was approved unanimously.

70. Section 2, “Repeal of Act” was approved unanimously.

71. Section 3, “Commencement” was approved unanimously.

SECOND READING

72. The Hon. Ronald Warsal KALMASEI, Minister of Justice and Social Welfare thanked the comments of both sides of the house and moved the bill to second reading and do pass.

73. The motion that the Bill be read the second time and do pass was approved unanimously.


BILL FOR THE MUTUAL ASSISTANCE IN CRIMINAL MATTERS (AMENDMENT) ACT NO. OF 2017

FIRST READING

75. The Hon. Chariot SALWAI, Prime Minister and Member for Pentecost introduced the bill, explained the purpose of the amendment then moved the bill to first reading.

76. The Hon. ALATOI Ishmael Kalsakau, Leader of Opposition and Member for Port Vila was disappointed that the Hon. PM tabled a bill that erodes the Sovereignty of the Nation. He referred to the FATF letter distributed by the Hon. PM, and complained that FATF should appreciate Vanuatu’s effort to comply with its requirements to exit the grey list. He stated that the bill removes the trust on our National forces by allowing foreign forces to dictate our operations. He declared that the opposition would vote against the bill.

77. The Hon. Christopher EMELEE, Member for Torres wanted to know why the word ‘expect’ was used emphatically in the FATF letter, and said that a committee must be appointed to implement the bill before February.

78. The Hon. KILMAN said that since the bill address all states; we must protect the interest of our state. He stated that the Attorney General (AG) is the Government’s adviser on such matters and not the Public Prosecutor.

79. The Hon. PM SALWAI responded that Vanuatu’s Sovereignty would be affected if it were grey listed or blacklisted. He continued that the Public Prosecutor has the

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constitutional power to prosecute criminal activities. He added that the letter was a response from a recent meeting with FATF committee.

80. The Hon. ALATOI said that Amendment 6(a) (1) provides that foreign force will enforce these laws in our Country. He thought that each states should deal with its crime separately, and consult each other for any decision otherwise.

81. The Hon. KILMAN said that power should be given to the AG so that it can defend the Government.

82. The Hon. PM SAL WAI said that Vanuatu has to pass these bills to exit the grey list.

83. The Hon. Minister NAP AT spoke in support of the bill. He said that all these bills are inter-regulated. He said that to be blacklisted implies that Vanuatu has no sovereignty.

84. The Hon. Minister KALMASEI referred to Amendment 6(2) and explained that the Public Prosecutor does not have all powers because it has to comply with prescribed laws.


COMMITTEE STAGE


86. Amendment 1, “Whole of the Act”, Amendment 2, “Section 1”, Amendment 3, “Section l(definition of “Foreign State”)”, Amendment 4, “Section 1 (definition of “serious offence”)”, and Amendment 5, “Section lfdefinition of “terrorist property”)” were approved on division.

87. Amendment 6, “After section 6”, Amendment 7, “Paragraph 7(2)(a)”, Amendment 8, “After subsection 10(0”, Amendment 9, “After section 23”, Amendment 10, “Paragraph 25(l)(b)”, and Amendment 11, “After subsection 25(1)” were approved on division.

88. Amendment 12, “Subparagraph 27(l)(a)(ii)”, Amendment 13, “After section 30”, Amendment 14, “Paragraph 31(b)”, Amendment 15, “Paragraph 31(c) and (d)”. Amendment 16, “After section 32”, and Amendment 17, “After section 34” were approved on division.

89. Amendment 18, “Subsection 40(1)”, Amendment 19, “Subsection 42(3)”, and Amendment 20, “After section 48” were approved on division.



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SECOND READING

92. The Hon. Chariot SAL WAI, Prime Minister thanked the Members for their comments on the bill and moved the bill to second reading and do pass.


94. The sitting was adjourned at 5.05p.m

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FRIDAY 1st DECEMBER 2017

SPEAKER : The Hon. Esmon SALMON, Member for Maleukla


ABSENT : The Hon. Joshua KALSAKAU, Member for EfateThe Hon. Rick Tchamako MAHE, Member for SantoThe Hon. Jay NGWELE, Member for AmbaeThe Hon. Jean- Pierre NIRUA, Member for Port VilaThe Hon. John SALA, Member for MalekulaThe Hon. Albert WILLIAMS, Member for AmbrymThe Hon. Ian WILSON, Member for Maewo

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2. The Hon. Ephraim KALSAKAU, Member for Port Vila, said the prayer.

3. The Hon. Speaker SAIMON read the agenda.


BILL FOR THE POLICE POWERS ACT NO. OF 2017

FIRST READING

5. The Hon. Alfred MAOH, Minister of Internal Affairs and Member for Santo, introduced the Bill, stated its purpose and then moved that the Bill be read a first time.

6. The Hon. ALATOI Ishmael Kalsakau, Leader of Opposition and Member for Port Vila, thanked the Minister for the Bill, but said it devalued the Bill because the Government always considered numbers over the importance of the Bill.

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7. The Hon. Joe NATUMAN, Deputy Prime Minister and Minister of Trade, Commerce, Industry and Tourism, raised a Point of Order and asked that the Hon. Leader of Opposition (LO) ALATOI reiterated his phrase.

8. The Hon. LO ALATOI apologized for his excessive remarks and recommended that the Government introduced Bills that meet the needs of people. He said Article 5 of the Constitution provided the right of protection for privacy; however, this Bill may deprive people of their rights. He concluded that the Opposition would withdraw from supporting the Bill because it refuses to be of a Bill that will be costly to the Republic of Vanuatu.

9. The Hon. Kalo SEULE, Member for Port Vila, said it seemed that other countries were using a form of colonizing an independent country. He asked why money cannot be confiscated from the point of departure and then read the preamble of the Constitution, which Vanuatu should be proud of. Finally, he said Vanuatu was founded on Christian principles and that it should not be fearful of foreign powers.

10. The Hon. Ralph REGENVANU, Minister of Lands and Member for Port Vila, said this was the final sitting day, meanwhile, continues to hear misleading remarks. He explained that the implementation of this Bill be made locally whilst local drafters at the State Law Office draft the Bill. He added that only people who do not consume imported products would vote against the Bill whilst his vote is favored.

11. The Hon. Gracia SHADRACK, Member for Malekula, said this Bill aimed at authorizing a special detachment to take control. He thanked the Prime Minister and his cabinet for finally bringing the Bill into Parliament, meanwhile, awaits its implementation.

12. The Hon. Chariot SALWAI, Prime Minister and Member for Pentecost, reassured the House not to worry about foreign countries and that it was a matter of compliance. He explained that the current law allowed foreigners to open savings accounts without paying taxes.

13. The Hon. Toara D. KALO, Member for Shepherds Outer Islands, declared his support for FATF-related Bills and joined his colleagues in saying that it was important to graduate from the grey list. As a Member of Parliament, he said he would exult only when all Bills are approved. He thanked the Minister of Internal Affairs for the new proposals but suggested to increase the number of officers. He asked whether the salary scale of the Police force be increased due to the risk faced while performing their duties.

14. The Hon. Minister NATUMAN thanked the Minister for the Bill and then referred to the Leader of Opposition’s comments regarding the people’s rights then said that the explanatory note has been drafted accordingly so that there is balance between the rights of the people and the offense committed.

15. The Hon. SHADRACK asked the Prime Minister to explain the Bill in simple terms and how it would benefit the people.

16. The Hon. PM SALWAI admitted that Malekula is the most populated island then explained that graduating out of the grey list is to allow fair-trading between countries. He added that Vanuatu required more transparency in order to attract more investors.

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17. The motion that the Bill be read a first time was approved unanimously.

COMMITTEE STAGE

Part 1, “PRELIMINARY ”

18. Section 1, “Interpretation”, was approved unanimously.

Part 2, “SPECIAL INVESTIGATIVE POWERS”

Section 2, “Commissioner to authorize undercover operations”. Section 3, “Commissioner to authorize application”. Section 4, “Application for surveillance warrant”. Section 5, “Issuing a surveillance warrant”. Section 6, “Content and terms of a surveillance warrant”. Section 7, “Period and renewal of surveillance warrant”. Section 8, “Urgent surveillance warrant”. Section 9, “Admissibility of evidence obtained”. Section 10, “Minor defect in connection with surveillance warrant or urgent surveillance warrant”, Section 11, “Prohibition on disclosure of communications intercepted and recordings” , Section 12, “Assistance by telecommunication operators”. Section 13, “Commissioner to authorize applications”. Section 14, “Warrant to access computers and computer networks”. Section 15, “Content and terms of computer warrant”. Section 16, “Urgent computer warrant”. Section 17, “Prohibition on disclosure of information, records and data”. Section 18, “Definitions”, Section 19, “Commissioner to authorize controlled delivery of property”, Section 20, “State not required to give undertaking for costs”

19. The Hon. Johnny KOANAPO, Member for Tanna, asked whether undercover operations could involve foreign police under the Country’s jurisdiction.

20. The Hon. Minister MAOH replied that they could only intervene if the Police Commissioner requested and gained approval of their entry by the Court.

21. Part 2, Sections 2-20 were approved unanimously.

Part 3, “MISCELLANEOUS”

Section 21, “Report on special investigation powers”. Section 22, “Domestic cooperation”, Section 23, “Protection from liability”. Section 24, “Act does not limit or exclude police powers in other legislation”. Section 25, “Regulations”, Section 26, “Commencement”

22. Part 3, Sections 21—25 were approved unanimously.

23. Section 26, “Commencement”, was approved unanimously.

SECOND READING

24. The Hon. Alfred MAOH, Minister of Internal Affairs, thanked the House for support and then moved that the Bill be read the second time and do pass.

25. The motion that the Bill be read the second time and do pass was approved unanimously.

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26. The Hon. Speaker SAIMON thanked the Members for their contributions towards the Bills, and then declared the Second Extra Ordinary Session of 2017 officially closed.

27. THE SECOND EXTRAORDINARY SESSION OF THE ELEVENTHLEGISLATURE OF 2017 WAS CLOSED AT 10.35A.M

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Documents

ELEVENTH LEGISLATURE