Much of Chinatown in the capital Honiara was destroyed in the riots and dozens of Australian police officers were injured as they stood up against rock-throwing rioters.

The riots erupted in April 2006 after the unpopular Snyder Rini was elected prime minister by MPs. Dozens of businesses owned by ethnic Chinese were looted and burned. Chinese businesses were targeted partly because of allegations Chinese businessmen and Taiwan had helped fund Mr Rini to bribe MPs for support in the vote for prime minister.

The report, which has been presented to Parliament, said it should be up to the courts to resolve the issue of Government liability and compensation for riot victims.

The damage was estimated at 180 million Solomon Island dollars ($A37 million) but a commission warned that compensation payments to Chinese businesses would trigger more anger against the Chinese community.

Solomon Islands police had failed to do its duty to contain the violence, the report said. It said there was confusion between Solomons police, then headed by seconded Australian Federal Police officer Shane Castles, and police attached to the Regional Assistance Mission to Solomon Islands.

The mission is an Australian-led force which arrived in the Solomons in 2003 to end years of civil strife, and is made up of Australian, New Zealand and Pacific Island personnel.

The report said the mission's police and Solomon Islands police were unclear on taking responsibility for trying to contain the violence. Australia and New Zealand sent in reinforcements of more than 200 soldiers to restore order after the riots erupted.

Meanwhile, former Solomon Islands attorney-general Julian Moti plans to apply for a stay of proceedings in a child sex case against him. Moti, a Fiji-born Australian citizen, was arrested in December 2007 in Brisbane.

He has been charged with seven counts of sexual intercourse with a person under 16, relating to the alleged rape of a 13-year-old girl in Noumea and Vanuatu in 1997. AFP, AP