Committee slams Authority

Samoa Water Authority Board members were paid allowances “through their participation in the Managing Director’s funeral.”

Such a practice “goes against the provisions of the Act that established these allowances.” Further “it is inappropriate for the Board to have allowances in attending cultural obligations.” And that’s not all. The Authority also reported net losses for the financial years 2010 through to 2012.

The revelations are made by Parliament’s Works, Transport and Environment (W.T.E.) Committee in its report on the Annual Report of the Samoa Water Authority for the Financial Years Ended June 30 2010, 2011 and 2012.

Obtained by the Weekend Observer, the report was among 39 reports tabled, approved but were not debated by Parliament when it sat in April. The report does not identify the Managing Director. It also does not name the Board members.

Chaired by Associate Minister, Tusa Misi Tupuola, other Committee members include Afoafouvale John Moors as Deputy Chairman, Levaopolo Talatonu, Lealailepule Rimoni Aiafi, Peseta Vaifou Tevaga, Toeolesulusulu Cedric Schuster and Fagaaivalu Kenrick Samu. According to the report, the “Committee noted that meeting allowances for Board Members were paid through their participation in the Managing Director’s funeral the previous month.

“There are no legitimate recommendations in implementing this standard.”

The W.T.E. Committee also made a recommendation to the Legislative Assembly to prevent allowances for “unsuitable reasons” such as the participation in management funerals.

“To prevent future Board allowances in participation of cultural obligations that involves Management, with the exception of official meetings of the Authority,” the Committee recommended.

Another Board issue the Committee noted was with the meetings they held. “A number of weekly Board Meetings have taken place at the expense of proceeding with Staff operations and work,” it reports. “Especially with Managers who uphold its duties in preventing water issues from rebounding.

“Looking now to S.W.A.’s financials, the Committee noted that in 2012 the Authority reported a $4,740,601 net loss.

“Management aims to continue in providing water treatment schemes throughout the country. As well as considering in raising the standard of collecting outstanding debts and unpaid bills,” the W.T.E. reports. “This is an issue that contributes to the Authority’s net loss considering the low cost of water services.

“It was the reason why cost of water services increased as planned in 2009, together with changes in quarterly paying water bills per year.

“This plan was in line with the improvement of water services to villages in rural areas as shown by donor assistance given by the European Union in strengthening the payment system for water services.

“The Committee says there currently no access to water to those who provide clean water due to increased demand and usage. “Unless Management seeks to reduce water loss by 20 per cent where it ensures the development access of clean water for all. “Work is continuing throughout the country where households near water catchment areas which risk the ability of collecting more water in future.

“As it creates the problem of increasing dirt accumulation in waterfalls that make it difficult to clean water during rainfall.” The Report is published verbatim below: 1. RECOMMENDATION:- The Works, Transport and Environment Committee recommends that the Assembly takes note of its Report.

2. PREAMBLE:- The Works, Transport and Environment Committee is constituted pursuant to the provisions of Standing Orders 176.

3. STANDING ORDERS 176:- It shall be the duty of the Committee: (a) To consider any bill, petition or other matter referred by the Assembly pursuant to these Standing Orders; and such Estimates or review of ministerial performance as maybe referred by the Finance & Expenditure Committee; (b) To examine the policy, administration and expenditure of ministries and associated government organizations related to construction and development, transport and transport safety, energy, conservation environment, land formation and surveying.

4. PAPER CONSIDERED:- (Presented 21/08/2012)(Referred 22/08/2013) 1. P.P.2013/2014 No. 24, Annual Report of the Samoa Water Authority for the Financial Year ended 30th June 2010: (Presented 06/08/2013)(Referred 07/08/2013) 2. P.P.2013/2014 No. 22, Annual Report of the Samoa Water Authority for the Financial Year ended 30th June 2011; 3. P.P.20l3/2014 No. 22, Annual Report of the Samoa Water Authority for the Financial Year ended 30th June 2012: 5. WITNESSES:- During the course of its investigations, the Committee was able to hear oral evidence submitted by: Samoa Water Authority

Jamie Saena - Deputy Managing Director Heseti Sione - Manager, Finance Division Tauiliili Ekiumeni - Manger, Urban O&M Division Kolone Tikeri - Manager, Commercial Division Levaai Toremana - Manager, Rural O&M Division Irasa Mauala - Manager, Savaii Operations Division

6. FINDINGS:- In the three financial periods under review, the Authority continues to effectively and efficiently manage its water services and in response to needs of customers. To provide quality water services that represent best value to our customers now and in the future: VISION:

To provide quality water services that represent best value to our customers now and in the future: MISSION: To effectively manage the provision of safe, reliable water services to our customers:

6.1 ACHIEVEMENTS OVERVIEW: 6.1.1 2009/2010: The Authority aligned its services in pursuit of its purpose and efforts that were stipulated in the Corporate Plan 2008-2010, and strived to achieve them within the Financial Year currently under review. Assessment of Work Output: - The ongoing assistance from external funded projects which continue to benefit Samoa Water Authority in its expedition to provide water for all. The European Union funded project and Samoa Sanitation & Drainage Project funded by the Asian Development Bank.

The major assistance provided by these projects include the development of capacity building of water services, sector orientation, improvement and rehabilitation of rural water supplies, increase efficiency and effectiveness of water supply systems, sanitation and wastewater improvements as well as sustaining wastewater improvements. - Another major achievement was the implementation and upgrading of a computerized system which is fully functional for monthly billing. - The continuous awareness to the public has been major driver for the Authority to get its message across to its valued customers; this role has helped raise the corporate identity and image of the Authority to its stakeholders by conducting consultations with the villages as well as delivering awareness programs using a medium of advertising.

6.1.2 2010/2011: This year saw the completion of the Water Supply and Sanitation Project, the Sanitation & Drainage Project and the restructuring of financing operations under the Main Budget to support services. Continuous awareness programs and activities to the public have been undertaken to ensure public awareness of SWA works at certain times. The Authority is committed to providing safe and reliable water services to the country and strives to obtain progressive improvements in bill collections for the last couple of years.

6.1.3 2011/2012: The implementation of services and organizing reports has led to the overall efficiency in management and operations of the Authority as well as noting a number of achievements thus far. The Authority has continued to assess the standard of its water services to villages and customers. This included a reduction in water loss levels from 70% in 2010/2011 to approximately 66%.The water treatment project will resume shortly. This year saw a number of improvements in its services due to implemented projects and efforts of the Authority to solve ongoing issues from the previous financial year.

6.2 FINANCIAL STATEMENT/ACCOUNT: 6.2.1 2009/2010: Income: Increase in total Income was recorded at SAT17,277,248 in comparison to SAT14, 959.319 in the previous year. This is a big increase mainly from water bill collections and is biggest contributing factor to the Authority‘s Income. Expenses: Total expenses have increased from SAT17, 941,277 in 2009/2010 to SAT19,077,228. The increase of expenses is due to repair and upgrade of operations and maintenance which include: -

Materials; - Protective gears and laboratory supplies; - Electricity costs; - Compensation and caretaker costs; - Hire of plant, motor vehicles and equipment; - Contractors and others; - Maintenance of non-system assets. 6.2.2 2011/2012: Income: The Authority’s total income increased from SAT15,484,007 in 2011 in comparison to SAT19,978,480 in 2012.

The contributing factor to this increase was due to raising water services revenue from SAT11,430,702 in 2011 to SAT12,495,934 in 2012. The revenue from water services is used to fund needed materials for operation, which does not involve projects, and it is also why the Authority needs assistance from Government as presently given. The Government funds the community service obligations project (CSOs) which assists in financing the lands that hold assets of the Authority. Expenses: 2011 - SAT20,616,615 2012 - SAT24,680,859 Net Loss: 2011 - SAT5,174,629 2012 - SAT4,740,601 Unsecured Debts:

The Authority continues to have issues in collecting water bills from the previous year, and it is an ongoing concern. However, during the Committee’s review, it was confirmed by the Authority that there have been positive changes.

The total balance of customer water services should be at: - 2011 - SAT7,673,584 - 2012 - SAT6,251,384 The majority of these funds are waters bills of Families including Corporations and Businesses that have water meters.

Unsuitable Expenses: The Committee noted that meeting allowances for Board Members were paid through their participation in the Managing Director’s funeral the previous month. It goes against the provisions of the Act that established these allowances and it is also inappropriate for the Board to have allowances in attending cultural obligations.

There are no legitimate recommendations in implementing this standard.

6.3 MANAGEMENT GOALS/ISSUES: - Management aims to continue in providing water treatment schemes throughout the country. As well as considering in raising the standard of collecting outstanding debts and unpaid bills. This is an issue that contributes to the Authority’s net loss considering the low cost of water services. It was the reason why cost of water services increased as planned in 2009, together with changes in quarterly paying water bills per year. This plan was in line with the improvement of water services to villages in rural areas as shown by donor assistance given by the European Union in strengthening the payment system for water services. - There currently no access to water to those who provide clean water due to increased demand and usage. Unless Management seeks to reduce water loss by 20% where it ensures the development access of clean water for all. - Work is continuing throughout the country where households near water catchment areas which risk the ability of collecting more water in future. As it creates the problem of increasing dirt accumulation in waterfalls that make it difficult to clean water during rainfall. - A number of weekly Board Meetings have taken place at the expense of proceeding with Staff operations and work, especially with Managers who uphold its duties in preventing water issues from rebounding.

6.4 ASSISTANCE: - A major operation that took five (5) years of completion through the partnership between the Authority and the Government of Japan, where Japanese professionals have worked on improving water leakages. - The Authority has completed its Programs for operations, which involves the enhancement of all service areas that have previously experienced service problems.

6.5 VIEWPOINT: During the Committee’s review of three Financial Years, it noted the following issues that the Authority should prioritize in case of future glitches, especially revenue issues which are relied upon to finance its services: - The Authority should measure water that is used with water loss, and it should be clearly indicated within its Annual Report on areas that need development. - The Authority should measure its water leakages close to 10km a year and not Skin. - Management should prioritize water losses, water catchment tanks and improving water meters. - Management should assess its customer base, to accurately assess whether it is businesses, tourist developments, small enterprises or the agricultural sector that heavily utilizes the services of the Authority.

- To prevent allowances of the Board for unsuitable reasons, like the participation in funerals of Management members.

6.6 SITE VISIT: The Committee was able to visit one of the ongoing Major Operations implemented by the Authority within the Financial Year that is under review.

This operation involves the use of a waterfall located in Saanapu, to pump water in cleaning water tanks that have been constructed, where it can then be accessed from this village to Fusi in Safata.

The process in installing a main pipe from the waterfall to a water treatment plant is a part of an operation under the Program for clean water as assisted by the European Union and it is hoped that it will finish this year.

7. APPRECIATION: The Committee wishes to thank the Board and Management in embarking on plans to further enhance its services, especially in collecting outstanding debts on using these services, in order to finance other areas of their operations.

The Committee wishes to record its appreciation to Management for their support during its review as well as the Site Visit, which made the completion of this Report possible. 8. RECOMMENDATIONS: At the conclusion of its consideration, the Committee resolved to recommend the Assembly: 1. For Management to prepare an Annual Report that assesses various customers and to determine which categories of customers utilizes the most and least of water amenities. 2. To implement and maintain an awareness program that pertains to protection of the landscape in capturing water. 3. To also make known the importance of paying water bills in assisting the Authority to further improve is services for all. 4. Advices Management to strengthen its bill collection processes.

5. To swiftly implement a system that would prevent the ongoing issue of dirt accumulation that minimizes the catchment of water during rainfall. 6. To prevent future Board allowances in participation of cultural obligations that involves Management, with the exception of official meetings of the Authority. 7. To properly prepare charts to coincide with official entries as the Committee noted the unclear documentation within the Annual Reports. 8. To closely consider the Orders of Board Members in future to ensure that it directly concerns the operations of the Water Authority.

9. RESOLUTION: At the conclusion of its consideration, the Committee resolved to recommend the Assembly: That the P.P.2013/2014 No. 24, Annual Report of the Samoa Water Authority for the Financial Year ended 30th June 2010, P.P.2013/2014 No.22, Annual Report of the Samoa Water Authority for the Financial Year ended 30th June 2012, P.P.2013/2014 No. 22, Annual Report of the Samoa Water Authority for the Financial Year ended 30th June 2011 be approved.

TUSA Misi Tupuola CHAIRMAN