Evidence of “collusion” presented to the P.M.

Prime Minister, Tuilaepa Sa’ilele Malielegaoi, has been presented with “documentary evidences” that public servants colluded to "defraud public funds" at the Samoa Land Corporation (S.L.C).

The evidence is contained in a file of documents - including a letter by the Chairman of the Public Accounts Committee, Papali’i Niko Lee Hang - leaked to the Sunday Samoan.

Dated 24 January 2015, the letter from Papali’i, who is also the Associate Minister of Public Enterprises, followed Parliament’s decision to pass the long-awaited government response to the report by the Officers of Parliament Committee (O.P.C) during Parliament's last sitting.

In the O.P.C report, a recommendation was made to take legal action against the public servants in question.

Prime Minister Tuilaepa tabled the government’s response. While it acknowledged the issues raised by both the Chief Auditor and O.P.C, Prime Minister Tuilaepa said remedial actions have been taken and the lessons from the reports have been incorporated by the government to improve its performance, heading into the future.

But Papali’i is neither satisfied by the response nor convinced that the government has done the right thing.

“You usually talk in public and use a scripture from the Bible, James 4 verse 17 which says that ‘Whoever knows what is right but does not do it, is sinning’,” Papali’i writes.

“I apologise your Honour but I have to show you (evidence of) the corrupt practices committed by the Minister and CEO because I fear God and his Word.”

Papali’i goes on to tell the Prime Minister that it’s vital for justice to be pursued – and that includes doing the right thing.

“Members of the O.PC Committee are all gravely disappointed and saddened by your response as it is an insult and a disgrace to the hard work carried out by OPC in an honest attempt to confirm the Chief Auditor’s findings and allegations involving gross mismanagement and serious violations of Government Statues and Regulations by SLC’s management."

“The public is now asking questions about the integrity of all members of the OPC committee and the truth in their Report as a result of the Government’s Response stating that there was no evidence of any corrupt practice found as reported by the OPC committee hence its main recommendation to refer the corrupt allegations as proven by the OPC to Court.” (Read edited copy of the letter below).

On top of the letter to Prime Minister Tuilaepa, the Sunday Samoan also has a copy of a letter from the Attorney General’s Office, dated 7 August 2014, in which Papali’i was asked to provide similar “information evidence” in relation to the allegations against the S.L.C.

The letter is signed by Assistant Attorney General, Muriel T. Lui. “Our office is currently conducting an assessment based on the allegations against S.L.C contained in the O.P.C report, to see if any criminal offences have been committed or if there have been breaches of laws,” the letter reads. “Accordingly, we kindly seek your assistance in providing any information or evidence regarding the above matter…”

In a response, dated 19 August 2014, Papali’i provided the Office of the Attorney General with the evidence uncovered by the O.P.C. “I really do not want the O.P.C recommendation for legal action against all those implicated and proven to have committed fraudulent practices to escape “justice” which must not only be seen but be done as well,” Papali’i’s letter to the Office of the Attorney General reads.

“At the end of the day, when justice is actually done, all public servants will be taught an important lesson that corruption is not worthy to be encouraged and practiced due to its adverse consequences as they must be held accountable for their actions.”

In 2013, the O.P.C, Chaired by former M.P, Muagututagata Peter Ah Him, was tasked to investigate a report to Parliament by Controller and Chief Auditor, Fuimaono Camillo Afele for 2010 and 2011.

In his report, Fuimaono highlighted instances of corrupt practices in the running of some government bodies – including S.L.C.

The O.P.C’s investigation confirmed a number of allegations raised by Fuimaono. In its report tabled in Parliament in April last year, it also recommended that legal action be taken against the public servants implicated. Under the law, the government had 90 days to respond.

This did not happen.

Questioned repeatedly about why it had failed to respond on time, Prime Minister Tuilaepa Sa’ilele Malielegaoi said the government officials were busy with the Small Island Developing States conference hosted by Samoa last year.

Here is an edited copy of Papali’i’s letter:

24th January 2015 The Honorable Prime Minister Susuga Tuilaepa Sa'ilele Malielegaoi Afioga e TALI A LE MALO I LE LIPOTI A LE KOMITI FAAPALEMENE (OPC) MA LE LIPOTI A LE PULE MA SUETUSI SILI – SAMOA LAND CORPORATION (SLC)

Ua faataatia nei i luma o le Palemene le Tali a le Malo e fasino i Lipoti e pei ona taua i luga, ma e oute fia tuuina atu ai ni faamatalaga faatasi ai ma ni faamaoniga (Documentary Evidences) ini mataupu faaletonu sa laga mai i sailiiliga a le Pule ma Suetusi Sili ma faamaonia e le Komiti Faapalemene (OPC).

Ma lou faaaloalo tele lava, oute manatu e ao pea ona ou faailoa atu i lau Afioga se agaga faanoanoa ma le le fiafia tele i le Tali a le Malo i fautuaga sa tuuina atu i le Lipoti a le Komiti (OPC) e faasino lea i le faatinoina faasolitulafono o nisi o galuega e le Minisita ma le Pulega o le SLC.

O le fautuaga muamua ma taua tele a le Komiti o le tuuina atu lea o nei galuega faatino faasolitulafono i le Tulafono e saili ai le mea moni ma le amiotonu, ae paga lea, e tusa ai ma le Tali ua tuuina mai, e le o taliaina ma faaogaina e le Malo fautuaga a le Komiti ona ua talitonu le Malo i ni faamatalaga sa tali atu ai le Pulega o le SLC oute talitonu e le sa’o ma le moni.

E masani lava ona e saunoa ma faaaoga upu ia mai le Tusi Paia. “Pe afai tatou te iloa le mea e tatau ona fai ae le faia, o le agasala lea i luma o le Atua”. James 4:17, “Whoever knows what is right but does not do it, is sinning.”

E faamalulu atu lava i lau Afioga, ae oute manatu e tatau lava ona ou faailoaina atu galuega faatino pi’opi’o a le Minisita ma le CEO ona oute mata’u tele i Afioga Pa’ia a le Atua.

Oute le o taumafai atu e tulituli apu se mataupu ua tali mai ai le Malo ae o se taumafaiga lava e saili ai le mea moni ma le mea amiotonu.

Pe afai la ua le faamaonia ni gaoioiga pi’opi’o (corrupt practices) a le Minisita ma le Pulega, ona silasila ane lea lau Afioga i nisi ia o galuega fa’atino faasolitulafono a le Minisita ma le CEO.

1. ILLEGAL RELEASE OF 10% RETENTION FUND – COLLUSSION TO DEFRAUD PUBLIC FUNDS Silasila ane lau Afioga i Documentary Evidences to prove that an act to defraud public funds was committed by the Minister, CEO and the contractor whereby the contractor requested the release of the 10% Retention Fund using a “Fake” Insurance Policy as guarantee and approved by the Minister and CEO knowing very well that the Insurance was fake as there were no premiums paid and reconfirmed by the insurance company that the said Policy was not valid for any claim.

Moreover, the early release of the 10% Retention Fund before the completion of the project and before the expiry of 12months after completion violated the conditions of the Contractors Agreement.

A fraudulent activity has been committed which no doubt is a criminal offence.

2. BREACH OF INCOME TAX ACT 2012 Progress Payments re: Contract Price to contractor without the deduction of Withholding Taxes violated section 95 of the Income Tax Act 2012. For your information, the Minister and his CEO during his tenure as Minister for Sth Pacific Games Authority (SPGA) also violated the Act by not withholding the said taxes from payments made to Contractors. (Please refer to Controller & Chief Auditor’s Report 2010 that was never tabled in Parliament on the SPGA Financial Statements with a “Qualified Audit Opinion” and other unsatisfactory issues raised therein involving gross mismanagement.)

Yearly Bonuses paid to staff also violated the Income Tax Act by not deducting PAYE taxes from gross amounts of bonuses.

3. SUSPICIOUS TRANSACTIONS IN PROCUREMENT OF ASSETS FROM MIDDLE MAN COMPANY

The Chief Auditor was concerned with payments made by SLC to the middleman company paid in NZ$ & US$ involving millions of Tala whilst the Company is a registered Samoan Company. All Invoices received from the company’s bank account in New Zealand. This practice of account payments is considered not the best practice as it denied any VAGST to be paid to the government.

The company also procured the expensive Water Drill Rig for SLC which arrived in an unsatisfactory condition. Please refer to Documentary Evidences regarding the suspicious procurement process and the inflated Invoices which suggested that SLC management colluded with the company to entertain a corrupt activity.

The same company was used by the Minister as the SPGA Minister to procure various assets which raises the concern by the Chief Auditor of why the Minister kept using the same middleman without any quotations from other suppliers since he found that such reckless practice would cost more to SLC.

4. SALE OF (2 x ¼ acre parcels) at the KOREA SUBDIVISION AT A VERY LOW PRICE Despite the approval by the Board of Directors to sell SLC Land to staff members at 60% of cost, the OPC felt that the said staff benefits was very unfair and unjust.

The issue I want to raise here is with regards to the sale by SLC of 2 parcels of ¼ acre to the CEO on credit at a price of $21,120.00 per ¼ acre whilst the Korea subdivision was sold to the public at $52,200.00.

The correct price of the said parcels at 60% of $52,200 market value should be $31,320.00, which means that the CEO paid $10,200.00 less than the correct price hence saving $20,400.00 for the 2 parcels in personal gain. And why was she entitled to 2 lots instead of 1 parcel?

Is this transaction not regarded as an “INSIDER TRADING” activity where obviously the CEO has made a personal gain for herself? (see EXHIBIT 6)

5. SLC MAIN HEADQUARTERS (OFFICE) AT TUANAIMATO The VARIATIONS amounting to $2,419,977.12 required to complete SLC’s new headquarters at a cost of $5,219,977.12 more than doubled the original cost of $2,800,000.00 approved by Cabinet and the said variations were never referred to Cabinet for approval as per usual government policy.

The OPC committee in its investigations found a lot of other anomalies including payments made to sub-contractors that the committee considered such transactions not at “arms length” as the payments made for signwriting of $120,670.00 was paid to a company which the committee was informed that the said company was owned by the Minister’s son in law;

There were also payments made to a landscaping company of $62,500.00 that the committee believed not at “arms length” as well.

The committee believed that the Variations were too excessive and the completed work was found very unsatisfactory given that the up-graded elevator was never in operation despite been paid an additional cost of $310,000.00 on top of the original approved cost of $180,000.00. At the end of day, SLC paid $490,000.00 for an expensive broken down elevator.

Please refer to other allegations confirmed true by the OPC Committee in my letter to the Attorney General attached.

Members of the OPC Committee are all gravely disappointed and saddened by your response as it is an insult and a disgrace to the hard work carried out by OPC in an honest attempt to confirm the Chief Auditor’s findings and allegations involving gross mismanagement and serious violations of Government Statues and Regulations by SLC’s management.

Moreover, it has denied justice to be served and to bring all those responsible in corrupt practices to defend themselves in Court. The public is now asking questions about the integrity of all members of the OPC committee and the truth in their Report as a result of the Government’s Response stating that there was no evidence of any corrupt practice found as reported by the OPC committee hence its main recommendation to refer the corrupt allegations as proven by the OPC to court.

Lau Afioga i le Alii Palemia, e le aoaia e le matapia le manaia, ae o le tuualalo i lau Afioga faamolemole se i e toe silasila ane a i le kopi a la’u tusi ma documentary evidences i le Loia Sili sa talosaga mai ai, faatasi ai ma ni mataupu ua ou ta’ua i luga e toe liuliu fa’a le Atua ai sou tofa mamao ona e foliga mai sa le atoatoa ma moni ni faamatalaga mai le SLC na tuuina atu i lau Afioga i allegations e aafia ai le Pulega, aemaise ai le Minisita ma le CEO.

If the Minister has resigned as a result of the outcome of the OPC Report, WHY IS THE CEO WHO IS SERIOUSLY IMPLICATED STILL EMPLOYED? Why is it that other CEO's when implicated in serious issues affecting their supervision and management roles are suspended and yet the CEO for SLC who is implicated in serious offences not suspended in accordance with Government Policies?

E aveatu pea vai malu i puega i lau Afioga pe afai ua le tau tamalii se lafoga i le tau molimoliina atu o lenei mataupu. Ia vaimalu ave i fale i sou finagalo faa le Atua.

Faamanuia le Atua i lau Afioga aua lava tiute faigata o loo feagai ai i le faafoeina o si o tatou Malo fapea fo’i si o tatou atunuu vaivai.

Ma le faaaloalo tele lava Papali’itele Niko Lee Hang Sui o le Komiti, OPC Taitaifono Komiti o Tupe a le Palemene