The future of staff at the Samoa Port’s Authority (S.P.A.) is in question with a Select Parliamentary Committee reporting that S.P.A. has resolved to “dismiss unproductive staff.”
In its Report on the Annual Report of the Samoa Ports Authority for the Financial Year ending June 30 2011, the Works, Transport and Environment (W.T.E.) Committee also called out S.P.A. for “wasting money on unnecessary developments irrelevant to the service provided.”
The Committee in question is chaired by Falealili M.P., Tusa Misi Tupuola.
“The Authority has resolved to address this (staff) issue and they are prepared to utilise the staff wisely, carry out staff trainings (and) dismiss unproductive staff,” the report reads.
“The Committee notes that it is because of the current issues experienced that dismissing of staff is an option. The Committee believes that this is a sensitive issue and it is an appropriate solution to the problem.
“The source of the inefficiencies is a result of poor management and it seems that the staff will have to pay for this. “The Committee feels that the Management should thoroughly revise the proposed solutions to the problems and how to solve them in an appropriate way.”
In its report, the Committee also notes the considerable number of planned projects that resulted in the increase in borrowing, which in turn affected the Authority’s operational performance.
“There has not been a satisfactory return on assets to repay the borrowed funds,” The Committee says.
“The Authority is currently considering resolutions to these financial and performance issues.” In general, the Committee noted that the operation of the Authority in the previous years was seriously affected by limited finances and a decrease in the number of container vessels docking in Samoa.
“Only one vessel docked at the wharf per month in the past years,” according to the Committee.
“Presently, there is an increase in the vessels calling into our port. Cruise Ship numbers has (sic) shown a steady trend and the number’s calling into port are agreeable.
“An issue at the moment is the overspending on the renovation of the tugboat that is currently dry-docked.” The Committee reports that the Authority carried out an internal investigation and found there had been a decrease in revenue generated.
“This is the current area of focus at the moment,” the Committee says. “One resolve has been to revise lease agreements of the Authority’s land and assets. “Leased land includes the land being used by the Ministry of Revenue at Matautu, the land at Matagofie, the Mariner, land being used by other freight companies and other areas in the rural areas.” The Committee reports the main areas of concern, which needs improvement, are the Authority’s returns to repay loans and the promotion of services to attract vessels to dock in its port.
“The Authority has prepared its Improvement Plan to guide their efforts in addressing the current operational and financial issues,” according to the report.
“The Committee believes that the main responsibility of the Authority is to provide and establish a safe and secure port equipped with necessary cargo handling facilities.”
Also during its investigations, the Committee noted that during this Financial Year, an excess of staff was contributing to overspending.
“This issue is evident to the new Management and the Cabinet,” says the Committee. “Compared to previous year’s performance outputs, there has been a decrease, for instance at the Aleipata wharf.”
At the conclusion of its report, the W.T.E. Committee made six recommendations to Government.
“Focus and uphold the Authority’s main legal obligations to save funds being expended on unnecessary developments irrelevant to the service provided,” the Committee recommended.
“Revise the Authority ’s lease agreements of its land and assets to ensure a modest return on assets.
“Assist the Authority financially in repaying loans because of the current unstable state of their returns.
“Consider appropriate options for instance the leasing of the slipway to freight companies to utilise the Satitoa Slipway to assist with return on assets.
“Increase the return on passenger fares travelling via the Mulifanua to Salelologa wharves and vice versa from .50sene to SATS2.00 “Purchase a dredge as was recommended in the previous Committee Report.”
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In addition to Tusa, the W.T.E. Committee comprises of Deputy Chairman, Afoafouvale John Moors and Members, Levaopolo Talatonu, Lealailepule Rimoni Aiafi, Peseta Vaifou Tevaga, Toeolesulusulu Cedric Salesa Schuster and, Fagaaivalu Kenrick Samu.
The Report reads in full below:
1. RECOMMENDATION
The Works Transport and Environment Committee recommends that the Assembly take note of its Report.
2. PREAMBLE:-
The Works, Transport and Environment Committee is constituted under the provisions of Standing Order 176:
3. STANDING ORDER 176
As prescribed by Standing Order 176, it shall be the responsibility of the Committee to:-
a) Consider any Bill, petition or other matter referred by the Assembly pursuant to these Standing Orders; and any such Estimates or Review of Ministerial performance as may be referred by the Finance & Expenditure Committee;
b) To examine the policy, administration and expenditure of the Ministries and associated government organizations related to construction and development, transport and transport safety, energy, conservation, environment, land information and surveying.
4. PAPER CONSIDERED:- P.P. 2012/2013 No. 71 - Annual Report of the Samoa Ports Authority Financial Year Ended 30th June 2011. 5.
WITNESS:
- During the course of its investigations, the Committee was able to hear evidence submitted by Samoa Ports Authority: Tufuga Fagaloa Tufuga - Chief Executive Officer Fepuleai Arthur - Manager, Finance Division Tuaiaufai Asalemo Fuimaono - Assistant Chief Executive Officer
6. FINDINGS - The performance outputs of the Samoa Ports Authority are guided by their legal obligation. A slight decrease in the performance outputs for the reported Financial Year has been attributed to: -
- Limited funds and; - Extensive planned projects The considerable number of planned projects resulted in the increase in borrowing which affected the Authority’s operational performance. Also, there has not been a satisfactory return on assets to repay the borrowed funds.
The Authority is currently considering resolutions to these financial and performance issues. In general, the Committee has noted that the operation of the Authority in the previous years was seriously affected by limited finances and a decrease in the number of container vessels docking in Samoa.
Only one vessel docked at the wharf per month in the past years. Presently, there is an increase in the vessels calling into our port. Cruise Ship numbers has shown a steady trend and the number’s calling into port are agreeable.
An issue at the moment is the overspending on the renovation of the tugboat that is currently dry-docked. The Authority carried out an internal investigation and found that there has been a decrease in revenue generated.
This is the current area of focus at the moment. One resolve has been to revise lease agreements of the Authority’s land and assets. Leased land includes the land being used by the Ministry of Revenue at Matautu, the land at Matagofie, the Mariner, land being used by other freight companies and other areas in the rural areas. The main areas of concern which need improvement are the Autl1ority’s returns to repay loans and promotion of our port services to attract vessels to dock in our port.
The Authority has prepared its Improvement Plan to guide their efforts in addressing the current operational and financial issues. The Committee believes that the main responsibility of the Authority is to provide and establish a safe and secure port equipped with necessary cargo handling facilities. Also during its investigations, the Committee noted that during this Financial Year, there is excess staff which is contributing to overspending.
This issue is evident to the new Management and the Cabinet. Compared to previous year’s performance outputs, there has been a decrease (for instance at the Aleipata wharf).
The Authority has resolved to address this issue and they are prepared to:
- Utilize the staff wisely;
- Carry out staff trainings;
- Dismiss unproductive staff The Committee notes that it is because of the current issues experienced that dismissing of staff is an option.
The Committee believes that this is a sensitive issue and it is an appropriate solution to the problem.
The source of the inefficiencies is a result of poor management and it seems that the staff will have to pay for this. The Committee feels that the Management should thoroughly revise the proposed solutions to the problems and how to solve them in an appropriate way. Summary of Samoa Ports Authority Assets:
- Dredges: These were once revenue generating assets however the Authority has stated that the dredge at Mulifanua is currently out of order. Plans to dry dock the dredge have been suspended for now as the oil in the dredge can seep and have dire effects on the environment.
The Authority is still working towards pumping the water out to enable the dry docking of the dredge. A decision will then be made whether to sell the dredge or find another use for it. - Satitoa Slipway: The feasibility study of this development is incomplete.
The Authority is currently looking at companies to lease this slipway long term to assist with returns on assets. Although the building is worn, the slipway is in good condition. There are many slipways that do not have buildings.
- Matagofie: The Authority has decided to review the lease agreement of this land as the term of lease is nearing expiration and construction work on the proposed Hotel has not begun. One of the options for the use o the land at Matagofie is for safe and secure storage of containers owned by freight Companies leasing the Authority’s land.
- Matautu Wharf: Lease agreements for the Matautu wharf are now being revised.
The Ministry of Revenue and Freight Companies are amongst those leasing the Matautu wharf for storage of their cargo and containers. -Marina: -Floating Restaurant: These are other developments by the Authority that have not achieved its initial purpose.
This is also a contributing factor to the depreciation in the returns on assets as funds have been spent on these developments.
6.1 VISIT:
i. Upolu:
The Committee was able to carry out a visit of the Matautu wharf on the 21st May 2013.
In the end of the year 2013, overseas specialist visited our wharf to assist with maintenance of our wharf. There is a proposal to rebuild another wharf in the future replacing the current wharf which was established in 1966. When this proposal is approved, $60million will be needed to fund this project.
This international wharf at Matautu is the only source of income for the Authority. The Samoa Shipping Services is generating revenue from the Salelologa wharf but the majority of the income is being used to maintain the facilities and buildings at the wharf.
For this service, the Authority is only receiving profit of .50sene per passenger. The fare for travelers travelling between Mulifanua and Salelologa has increased but the income generated is still the same.
A proposal is being prepared for the Cabinet to purchase a tugboat to replace the old tugboat. The defective tugboat Tava’e has been sunk in the ocean near the Faleolo Airport, the tugboat Tafola is in need of repair work and the tugboat Atafa is currently under renovation.
7. COMMITTEE ACKNOWLEDGMENTS:-
The Committee expresses its gratitude to the Board of Directors and the Management of the
Samoa Potts Authority for the proposals and programs laid out for improvement to the service offered. We also acknowledge their efforts in finding revenue generating options to carry out these projects.
We also thank the CEO and the staff for their support during the Committees investigations in its attempts to compile this report.
8. RECOMMENDATION:- At the conclusion of its findings, the Committee recommends that the Government — 1. Focus and uphold the Authority’s main legal obligations to save funds being expended on unnecessary developments irrelevant to the service provided.
2. Revise the Authority’s lease agreements of its land and assets to ensure a modest return on assets.
3. Assist the Authority financially in repaying loans because of the current unstable state of their returns.
4. Consider appropriate options for instance the leasing of the slipway to freight companies to utilize the Satitoa Slipway to assist with return on assets.
5. Increase the return on passenger fares travelling via the Mulifanua to Salelologa wharves and vice versa from .50sene to SATS2.00
6. Purchase a dredge as was recommended in the previous Committee Report.
9. RESOLUTION:-
At the conclusion of its considerations, the Committee resolved to recommend that the Assembly:-
Approve P.P. 2012/2013 N0. 71 Annual Report of the Samoa Ports Authority for the
Financial Year ended 30th June 2011. TUSA Misi Tupuola CHAIRMAN
| Members | Appointed | |
| Tofa TUSA Misi Tupuola - Afioga AFOAFOUVALE John Moors - Tofa LEVAOPOLO Talatonu - Tofa LEALAILEPULE Rimoni Aiafi - Afioga PESETA Vaifou Tevaga - Afioga TOEOLESULUSULU Cedric - Pose Salesa Schuster - Tofa FAGAAIVALU Kenrick Samu - | Chairman Member | 30/05/2011 30/05/2011 |
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