Govt. puts its interests first

A Select Committee has accused the government of putting its interests above that of struggling Public Enterprise – the Samoa Airport Authority (S.A.A).

The allegation is made by the Works, Transport and Environment (W.T.E.) Committee in its report to the Legislative Assembly on the S.A.A’s Annual Report for the year ending June 30 2012.

The Chairman of the Committee is the Associate Minister for The Ministry Of Works, Transport And Infrastructure (M.W.T.I.), Tusa Misi Tupuola.

“The Authority has been awaited [sic] for a final decision for Fagalii Airport, even the allocation is already approved in the Budget, the Committee reports,” the report reads.

“Moreover, it is still waiting for a final Cabinet Decision with ground handling services.

“The Committee believes that the issue has been delayed because the Government have shares with Polynesian Airlines.” This charge comes as the Committee further reports that the Authority failed to make a profit in its first 27 years of operation, accumulating a total loss of $45 million tala.

“Since 1984, the Authority operated without any profit until 2011 with a total accumulated loss of SAT45 million,” the Committee reports.

“At the end of 2012, the accumulated loss decreased by $1 million for the first time due to a profit but the accumulated loss usually at a total of $2 million — $3 million a year.

“The Authority has confirmed that the 2013-2014 Annual Report highlights a profit of $1 million.” The W.T.E. Committee says that upgrading work started in 2012, however the Board intends to seek for foreign financial assistance.

“The same year, a memorandum of understanding was signed between the Authority and the World Bank,” it says.

“The Authority’s Master Plan includes recommendations by the KVA (Consult Ltd) that our runway length is not up to international standards."

“The World Bank and the Shanghai Company were also involved in the study conducted by the KVA, Airport Terminal’s renovation work will be constructed by the Shanghai Company.” The Committee said that the Authority now focuses on improving its priority areas in order to upgrade its services to assist its revenue collection.

“Negotiations with the World Bank and the Shanghai Company are already in place with regards to Terminals and Sanitation System Upgrade,” it reports.

“The Project (was) deferred due to financial issues. The whole Project cost is US$54 million ($130,454,603.99 tala).” Furthermore, the Committee noted “without any doubt” the accumulated loss and decrease in revenue would be an ongoing issue with the Authority when compared to a decrease in passengers and flight movements.

“In addition, the Authority has confirmed an increase in expenses on electricity at a total of $100,000 — $110,000,” the report reads."

“The Total Car Park revenue earnings (are) still (in) question.”

Despite financial issues faced by the Authority, but the Committee said it had witnessed a lot of improvements and achievements. The Authority did take the time to respond to the Committee’s concerns.

“Consultations now in progress with solar companies for future plants in order to minimise expenses on electricity,” it responded. ”Revenue earnings from the car park increased compared to the previous financial year. "

“The new change was initiated in order to cater for not achieving past car park revenues."

“The Final Decision for Fagalii Airport was deferred until S.I.D.S. (Small Island Developing States) Conference ends, however it is still pending.”

In addition to Tusa, the W.T.E Committee comprised of Deputy Chairman Afoafouvale John Moors, and Members Levaopolo Talatonu, Lealailepule Rimoni Aiafi, Peseta Vaifou Tevaga, Toeolesulusulu Cedric Pose Salesa Schuster and Fagaaivalu Kenrick Samu.

The full report will be published tomorrow.