Parliament Committee praises Samoa Housing

“The Corporation successfully delivered its service to the public for enhancement of living standards regardless of the pressure on the economy as a result of the global financial diffi culties”

The performance of the Samoa Housing Corporation (S.H.C) has been hailed as a shining star despite the economic difficulties.

So says Parliament’s Health and Social Services, Internal Affairs, Community and Social Development (H.S.S.I.A.C.S.D.) Committee in a report to Parliament, obtained by the Samoa Observer.

Chaired by Gatoloaifaana Amataga Gidlow, the Committee has praised S.H.C. – headed by Chief Executive Officer, Matautia Rula Levi - for “successfully delivering its service to the public for enhancement of living standards…”

The Committee’s report on S.H.C.’s Annual Report for 2012 was among 39 reports tabled and approved by Parliament without debate, last month.

The reports have been obtained and published by the Samoa Observer for the information of members of the public.

The Social Services Committee includes deputy Chairman, Aeau Peniamina Leavaiseeta and Motuopuaa Aisoli Vaai, Ifopo Matia Filisi, Aveau Nikotemo Palamo, Sooalo Mene and Alo Fulifuli Taveuveu as members.

According to the report, the Committee found that the Corporation has met its objective. “The Corporation successfully delivered its service to the public for enhancement of living standards regardless of the pressure on the economy as a result of the global financial difficulties,” the report reads.

“Total loans approved to the public during the Financial Year amounted to $13,579,914 indicating a 73 per cent increase from the previous year, a reflection of hard work and endless demand from the public for housing loans driven by their aspirations for better homes.”

The Committee reports that the S.H.C. has maintained its focus on maximising profit aiming at improving the Return of Equity and financial capacity.

“As a result, net profit amounting to $506,235 or 23 per cent was recorded compared to the previous Financial Year. A 3.2 per cent Return on Equity reflected an overall satisfying performance.

“Total value of existing loans increased by 22 per cent from the previous year to a value of $26.5million, which reflects an increasing demand for housing loans especially in the low income sector whose needs cannot be serviced by the commercial banks.”

The H.S.S.I.A.C.S.D. Committee says S.H.C. revenues earned in the 2012 financial year increased by $506,235 compared to the $397,906 in the previous year.

“Compliance with governing legislation is a constant challenge in responding to the inevitable risks of meeting its social legislations to the vulnerable target group,” the report reads.

“Affiliation of the Corporation with related international financial institutions is a continuous advantage for the Corporation in terms of training, exposure and innovation for its personnel.

“It is an opportunity to consult and share on issues and ways to solve them.

“This year has also seen the change of Directors on the Board in compliance with the Samoa Housing Corporation Act 2010 to be entirely independent.

“The Committee acknowledges the Board of Directors and Management of the Corporation for the achievements this year.”

The Committee’s report is published in full below:

1. RECOMMENDATION:- The Health and Social Services, Internal Affairs, Community and Social Development Committee recommends that the Assembly takes note of its Report.

2. PREAMBLE:- The Health and Social Services, Internal Affairs, Community and Social Development Committee is constituted pursuant to the provisions of Standing Orders 171. 3. STANDING ORDERS 171:-

Pursuant to Standing Orders 171, it shall be the duty of the Health and Social Services, Internal Affairs, Community and Social Development Committee: i. To consider any bill, petition or other matter referred by the Assembly or pursuant to these Standing Orders; and such Estimates or review of ministerial performance as maybe referred by the Finance & Expenditure Committee; ii. To examine the policy, administration and expenditure of ministries and associated government organizations related to health, housing and social services, internal affairs, community and development.

4. PAPER CONSIDERED:- P.P 2013/2014 No. 46, Samoa Housing Corporation Annual Report for the Year 2012

5. WITNESSES During the course of the Committee’s review of the Annual Report of the Ministry of Women, Community and Social Development for the period ended 30th June 2011 and 30th June 2012, it was able to hear oral evidence submitted by the following:

Samoa Housing Corporation

Matautia Rula Levi - Chief Executive Officer Fulumoa Su’a — Assistant Chief Executive Officer 6. FINDINGS The Samoa Housing Corporation was established in 1989 under the Samoa Housing Corporation Act 1989. The objective of the establishment was to- “Provide financial assistance to low income families that are unable to loan from commercial banks because of the lack of assets to guarantee the loans and interest incurred.”

The Committee found through its investigations that the Corporation was able to achieve its stated objective. The Corporation has successfully delivered its service to the public for enhancement of living standards regardless of the pressure on the economy as a result of the global financial difficulties Total loans approved to the public during the Financial Year amounted to $13,579,914 indicating a 73% increase from the previous year, a reflection of hard work and endless demand from the public for housing loans driven by their aspirations for better homes.

The Corporation maintained its focus on maximizing profit aiming at improving the Return of Equity and financial capacity. As a result, net profit amounting to $506,235 or 23 % was recorded compared to the previous Financial Year.

A 3.2% Return on Equity reflected an overall satisfying performance. Total value of existing loans increased by 22% from the previous year to a value of $26.5million which reflects an increasing demand for housing loans especially in the low income sector whose needs cannot be serviced by the commercial banks.

Revenues earned increased by $506,235 compared to the $397,906 in the previous year. Compliance with governing legislation is a constant challenge in responding to the inevitable risks of meeting its social legislations to the vulnerable target group. Affiliation of the Corporation with related international financial institutions is a continuous advantage for the Corporation in terms of training, exposure and innovation for its personnel. It is an opportunity to consult and share on issues and ways to solve them.

This year has also seen the change of Directors on the Board in compliance with the Samoa Housing Corporation Act 2010 to be entirely independent. The Committee acknowledges the Board of Directors and Management of the Corporation for the achievements this year.

7. RECOMMENDATIONS Based on its Findings the Committee recommends that the Government:

1. Recommend the Corporation investigates other strategies to further assist the public with their loans for instance interest free loans.

2. Monitor through the Corporation the loan repayments so that the Returns are not affected and there is Revenue to continue this assistance to the public.

8. RESOLUTION: At the conclusion of its consideration, the Committee resolved to recommend the Assembly: Approve P.P 2013/2014 No. 46, Samoa Housing Corporation Annual Report for the Year 2012.

Hon. GATOLOAIFAANA Amataga A. Gidlow CHAIRPERSON

Members                                                                                         Appointed:

Afioga Hon. GATOLOMFAANA Amataga Gidlow - Chairman           31/05/2011
Afioga Hon. AEAU Peniamina Leavaiseeta - Deputy Chairman       24/06/2011
Tofa MOTUOPUAA Aisoli Vaai - Member                                         24/06/2011
Afioga IFOPO Matia Filisi - Member                                                 31/05/2011
Tofa AVEAU Nikotemo Palamo - Member                                        31/05/2011
Tofa SOOALO Mene - Member                                                        31/05/2011
Tofa ALO Fulifuli Taveuveu - Member                                              03/10/2011