Cut “abuse of public assets,” law-breaking, govt. told

The Finance and Expenditure Committee (F.E.C.) of Parliament has told the government to cut the “abuse of public assets,” stop breaking the law and reduce its “overspending.”

F.E.C. says such negligent behavior is costing money the country does not have.

The concern is contained in the Committee’s report on the Government’s Main Estimates of Receipts and Payments for the Financial Year Ending 30 June 2015, a copy of which has been obtained by the Sunday Samoan.

The committee is chaired by the Associate Minister of Communications, Papali’itele Niko Lee Hang; its Vice Chairperson is Associate

Minister of Tourism, Tafua Maluelue Tafua.

Other members include the leader of the Opposition, Palusalue Fa’apo II, Tialavea Fea Seigafolava (H.R.P.P), Taefu Lemi Taefu (H.R.P.P), Afualo Dr. Wood Salele (Tautua) and Lealailepule Rimoni Aiafi (Tautua).

According to the report, the Ministry of Finance struggled with putting the budget estimates together.

But the Committee noted that a number of the problems they uncovered could have been avoided.

“There are Government policies which should have been well monitored to ensure increase of ordinary revenue,” the report reads.

 “Such (include the) good monitoring of cash flow and not overspending on other controlling various output items such as luncheon and dinning which a lot of Ministries and Corporations have overspent more than 100 per cent of actual allocations in the main estimates.”

The Committee also urged the Ministry of Finance (M.O.F) to comply with the submission of public accounts to Parliament.

The Committee noted that M.O.F “did not comply with the reporting requirements of Part XIV of the Public Finance Management Act 2001”.
Part XIV deals with financial reporting.

According to the Act, the Minister is responsible for the “supervision of the finances, assets and liabilities of the State so as to ensure that a full accounting is made to the Legislative Assembly of all transactions involving public moneys or the disposition of public property. And the supervision of the finances of public bodies.”

The Committee then turned its attention to State Owned Enterprises (S.O.E’s), or Public Bodies.

“The Committee has raised so many concerns on how reluctant the S.O.E’s are and failing to meet their obligations,” the report says.

“The main objective behind Government’s vision to privatise Government Authorities to operate as S.O.E.s to be monitored by Board of Directors, is to generate income and declare annual dividends contributing to financing various Government’s commitments and activities appropriated in annual financial budgets from time to time.

“Some of the concerns the Committee raised included that Part II of the Provisions of the Public Bodies (Performance and Accountability) Act 2001 be re-enforced to ensure all Public Bodies are obligated to contribute of 50 per cent of their revenues, dividends, to assist the Ministry of Finance in financing Annual Government Appropriations.”

In regards to Government Policies, the F.E.C. was not happy about the “abuse of government vehicles.”

So much so it felt the need to reprint the Cabinet directive concerning this issue within this report.

“The Committee throughout its scrutiny noted its concern of the abuse of government vehicles by public officials causing unnecessary expenditures,” according to the report.

“This is one of the most pressing issue which Government should consider as a priority to reduce spending."

“The Committee confirmed that a Cabinet Directive has already been issued (F.K.) 13(l7), which clearly outlined all the requirements and conditions with regards to all Government vehicles.”

The Committee was particularly concerned with Chief Executive Officers and their Assistants’ misuse of government vehicles.

It attempted to address this issue by asking the Public Service Commission (P.S.C.) to put a stop to this misuse of public property for good.

“The Committee also enquired the P.S.C. as a member of the monitoring team for the Government Vehicle Policy in that there are noticeably C.E.O.’s driving Government vehicles with no government license plates to put a stop to it once and for all as these are not private properties but belongs to government,” the report reads.

“In addition the Committee also stated that those in A.C.E.O. positions are still using government vehicles outside of working hours which is not in line with Cabinet FK 13 (17).

“The Committee believes that there should be proper enforcement of Cabinet decisions for adherence for effective and efficient management of government resources such as vehicles.”

But the report is not all bad news.

 “The Committee revealed through its inquiries into the Main Estimates 2014/2015 how difficult it was for the M.O.F. to put in place a sound economic management strategies to cater for demands in various Government Sectors,” the report reads.

“However, there are other positive alternatives the Committee believes the Assembly should take note of.

“It is quite obvious that program of expenditures appropriated in the Main Estimates 2014/2015 exceeds ordinary revenue as indicated by the M.O.F.

“Such performance measures would also encourage Government to determine whether the appropriation estimates allocated to several Ministries and State Owned Enterprises is appropriate or inadequate.”

This is despite this year’s Budget being $49 million less than the Government’s 2013-14 Financial Year Expenditure.

The Committee’s full report will be published in tomorrow’s edition. Meantime, here is a brief summary of department output appropriation.

Summary of Departmental Output Appropriations Highlights

MINISTRY OF FINANCE - $85,504,588 The Committee urged the Ministry of Finance to strengthen its monitoring role and encouraging Government Ministries and Public Bodies that they should always comply with their reporting obligations.
“And submit annual reports to Parliament at the end of each financial year, which the Committee feels it is vital and would significantly improve transparent operational controls and account for public resources,” the Committee reports.

"(The Committee) Recommends the Authority to adhere and comply with timely submissions of annual reports in accordance with Parliamentary requirements.

“(And) That the Ministry of Finance to comply with the submission of public accounts to Parliament (sic) did not comply with the reporting requirements of Part XIV of the Public Finance Management Act 2001.”

MINISTRY OF EDUCATION, SPORTS & CULTURE -  $84,003,538 The Committee also raised its concern about the progress of the salary increase for teachers.

“The Public Service Commission confirmed that the disbursement of salary increase for teachers will take place within this Financial Year,” the report reads.

MINISTRY OF HEALTH - $81,877,881 The Committee reported there have been complaints about the cost of health care, such as the $40 tala fee for sleeping in the outpatients’ ward.

“And the disappearance of a doctor who is to sign off for a patient waiting to be discharged,” the report reads.

“This has prompted the management to review the amount a patient has to pay.

“The total capital cost of operations under output three is $157,094 due to the belief that all countries prioritising curative services over prevention.

“The Management believe there is lack of funding for prevention programmes, as much of the attention is taken towards curative services and not prevention.”

NATIONAL HEALTH SERVICES - $73,111,356

In its report the Committee noted that $11 million from this appropriation goes to overseas treatment which is a substantial amount and cost.

“The Committee enquired about the services done by Dr. Benjamin and a Memorandum of Understanding (M.O.U.) in place regarding this arrangement,” it states.

“The N.H.S. stated that they cannot provide an M.O.U. as requested.”

“The Committee emphasised the need to review this and that maybe it is high time to utilise our own Samoan people who are medical professional to do this service.” During its considerations of the Budget, the Committee asked the N.H.S. about some of the issues that have arisen from the nursing services and the need for the medical and nursing professionals to work collaboratively to serve our people.

“The committee re-emphasized that our people are dependent on their services as health workers,” the report reads.

MINISTRY OF WORKS, TRANSPORT & INFRASTRUCTURE - $59,132,802
In its report the F.E.C. noted that the Ministry had been appropriated less money to pay its rent on its office in the T.A.T.T.E. building.

“The Ministry stated that negotiations have been made re-considering the lease payable according to the space that they are occupying,” the report reads.

“After negotiations on these terms, the Ministry is finally satisfied and has come up with a more appropriate amount to be paid in the future.” The Committee made two significant recommendations to government regarding this Ministry.

“(It recommends) opposing the proposal of the Samoa Shipping Corporation to be in charge of the Mulifanua Wharf, Salelologa Wharf and Satitoa Aleipata Wharf but still prefers the Samoa Ports Authority to remain as a monitoring Agent for all these government assets,” the report reads. ”Recommends the Ministry to have an opportunity in the constructing of roadways to ensure full superior of this service such as played by the Land and Transport Authority (L.T.A.)

“The Committee suggests, that it is inappropriate to surrender all contracts to S.O.E.s and controlled by themselves.”

LAND TRANSPORT AUTHORITY - $35,413,187 The Committee reports that new increases for Bus and Taxi fares commenced in May 2014.

“The Authority has confirmed that there are a lot of positive opinions from the public and these allow them to observe an increase made by bus owners before the official increase,” the report reads.

“Bus and taxi owners objected the new increase, saying that it is unfair compare to the increase of petrol and diesel price as well as spare parts.”

SAMOA WATER AUTHORITY -  $15,000,000; $20,111,556 In its report the Committee reports the Authority has been acting illegally.

“(It) noted that the Authority continues paying withholding taxes of Directors, and it is illegal,” the F.E.C. report reads.

“The Authority confirmed that a sitting allowance of $250 was paid to each Director for their presence at the late General Manager’s funeral, under the authority of the Acting General Manager.

“The Committee believes that it is illegal.

“The Committee was so disappointed with breaching of Government policies and the law.” In light of this issue the F.E.C. made two recommendations:

“The Authority to be complied with legal provisions of paying withholding taxes of board members in order to cease payments of taxes and save funds for its operation,” the report reads.

“To cease payments of sitting allowances to board members while attending other occasions such as funerals except for board meetings.”

MINISTRY OF NATURAL RESOURCES & ENVIRONMENT - $28,569,367 According to the Committee, the Ministry was given a budget of $125,000 for the renovation of the Post Office due to several damages that have been witnessed.

“There are only two companies that are currently using the building under lease,” the report states.

“The Post Office leases for $70,000 a year and telephone company, Bluesky, pays $60,000 a year.

“The Ministry was hoping to obtain more funds for this initiative (than) they requested because they believe that the estimated budget given by the Ministry of Finance is not enough.”

According to the report the Ministry is currently looking at improving the service of public toilet in the town area.

“They have also set out the planning for the establishing of a new public toilet on the east side of the current,” the Committee says.

“The Ministry noted that they are still deciding with the Ministry of Finance on which contractor to be responsible with (sic) the project because they have realised that most contracts that are tendering at a low cost, emphasises…very bad quality of work.”

MINISTRY OF FOREIGN AFFAIRS AND TRADE - $21,258,876 According to the Committee the International Criminal Tribunal for Prosecution of Persons, which sat under M.F.A.T., is defunct.

“For the International Criminal Tribunal for Prosecution of Persons, there is no allocated funds for the year 2014/2015.

“After a review the Tribunal will no longer operate as it cannot achieve its goals.”  In addition to this, the F.E.C. reports the M.FA.T. is looking into ways to attract aid from countries (sic) such as Africa.

“This would be a cost effective with no strings attached approach,” the Committee reports.
“And only requires that of a person with promotional media expertise.”

MINISTRY OF COMMERCE INDUSTRY AND LABOUR - $16,942,143 The F.E.C. questioned the responsible Ministry for conducting credit checks for foreign investors coming into the country and applying for business license.

“That the Ministry of Commerce Industry and Labour to work collaboratively with the Ministry of the Prime Minister and Cabinet and the Ministry for Revenue to consult and review policies on issuing work permits and business licenses.” the Committee recommends.

“The Committee also raised its concern on the awarding of contracts to overseas building contractors who have bid and taken over most of the construction work which used to be done by local contractors.”

MINISTRY OF AGRICULTURE AND FISHERIES - $13,840,474 Before the Committee could consider the main estimates for this Ministry, it took pause to make note of something.

“It was hard for the Committee to accept the continuous contempt of Parliament by the Chief Executive Officer,” the report reads.

“It is not the first time he breaches privileges and ethics of Parliament.

“However the Committee seriously considered the effects of this on performances for the benefit of the public, and that the Committee approves to consider the total appropriations for the Ministry.” The Committee also noted the

“carelessness” of the Ministry in monitoring some of its organic projects.

“Because there were no records of total number of crops planted since the start,” the report reads.

“These records can't confirm achievements and the use of funds appropriately.

“At the time of Committee investigation, a total of $219,300 for unpaid bonuses still has not been paid out.” In addition to this an allocation of $5,660,000 approved for the Agricultural Cyclone Response Project, was confirmed by the Chief

Executive Officer during the 2013/2014 Budget Screening."

“That the said amount will be paid out in full by to June 2014, however it still hasn’t been paid out,” the Committee reports.

“It highlights poor performance according to information submitted before the Committee.”

MINISTRY OF REVENUE  - $11,421,059 While the Committee noted an increase of total revenue compared to the current financial year 2013/2014, it says the Ministry confirmed there would be no new taxes this financial year.

“The Ministry for Revenue is the only Ministry the government rely heavily on for financial support,” the report reads.

“The Ministry also confirmed that there is no intention of increasing any taxes within this financial year.

“The Committee raised its concern about increasing taxes as it is the only way the Government can earn revenue to accommodate a lot of developing projects at the moment.”

MINSITRY OF WOMEN, COMMUNITY & SOCIAL DEVELOPMENT - $10,436,807

“The Committee noted an increased spending in output two from the Financial Year 2013/2014,” the report reads.

“The Ministry confirmed that it was due to Ministerial visitations and the usual gifts and donations. ”The Committee raised its concern for the overspending and urges the Ministry to discontinue such practice after this Financial Year.

“The concern of the Committee is that the Ministry adhere and comply to this Government Policy.” The Committee also noted a large number of ministries with debts towards the printing service.

“The Ministry claims this has a big effect on the printing service not meeting its objective,” according to the F.E.C.

“The Ministry noted the main problems it is facing is the difference in records between the printing service and the ministries.

“The Committee noted that the Ministry do a detailed follow-up and deduct the amount of debts through the Ministry of Finance.”

SAMOA TOURISM AUTHORITY - $10,361,255 The F.E.C. noted in its report that there is an enormous decrease in the Authority’s appropriation.

“However, the Authority confirmed that they will strive for its best to operate according to allocations approved,” the report reads.

“It also confirmed that there are extra roles which the Authority can achieve and can be able to rely on in terms of funds.”

MINISTRY OF PRIME MINISTER & CABINET - $7,986,312 The Committee questioned why there hasn’t been a significant amount of cost recovery for the Ministry and yet we have experienced a lot of foreign investors especially Asians inside Samoa running business.

“The Chief Executive Officer elaborated that this is one of the core responsibility of the Immigration Division is to conduct credit checks for any person who comes into the country.

“The Ministry showed its concerns of a person should at least stay in Samoa for another three months before issuing a working certificate or any other permit.

According to the Committee the Ministry further confirmed there are three certain criteria to meet before any permit is awarded which include, the applicant be a Samoan Citizen, married to a Samoan Citizen, or, hold permanent residence.

“The Ministry also confirmed that all applications for Citizenship are referred to Cabinet for review and approval,” the report reads.

“The issuance of Foreign Investment Certificates, should be the responsible of the Ministry of Commerce Industries and Labour.

“Whereas the issuance of business licenses should be the responsible of the Ministry for Revenue.”

The F.E.C. therefore recommended that the Ministry coordinate with the Ministry of Commerce, Industry and Labour and the Ministry for Revenue to establish a task force and to consider alternatives that all of the concerns raised regarding the issuance of permits and working certificates can be centralized in one location.

“The Committee also recommends all Ministries involved to have consultations and review related policies and regulations to prevent any duplication of services rendered out to the public.”

THE PUBLIC SERVICE COMMISSION - $4,402,019 The report reads that the Committee enquired about the reclassification of salaries for P.S.C. staff being the main contributing factor in the increase in the new budget which noticeably does not correspond with all Government Ministries and Corporation employees.

“The C.E.O. stated that a recommendation from the tribunal based on their advice has led to the implementation of this new reclassification,” according to the F.E.C.

“The Committee stated that this process does reflect an equitable process across all government employees and needs to be implemented across the board.

“The C.E.O. reassured the Committee that this will be implemented across all government Ministries.

“In addition the Committee also stated that those in A.C.E.O. positions are still using government vehicles outside of working hours, which is not in line with Cabinet FK 13 (17).

“The Committee believes that there should be proper enforcement of Cabinet decisions for adherence for effective and efficient management of government resources such as vehicles.”

The Committee recommended to government that it cease all the remunerations of Principals and Senior Officers of the Public Service Commission employees until they are all implemented across all Government Ministries and Corporations employees to reflect a fair and equitable process.

THE OFFICE OF THE CONTROLLER AND CHIEF AUDITOR - $3,341,769

In its report the Committee questioned the Office about several Ministry reports that were submitted to the Parliament and has witnessed the slow attempt to complete the auditing of Government Ministries reports as well as State Owned Enterprises.

“The Committee considers that all auditing progressions must be completed and able to be presented to Parliament on time,” it reads.

“The Committee asked what the condition of the Government S.O.E.s was in at the moment regarding the Offices’ auditing reports.

“Since the S.O.E.s have been lacking most of the time in playing their part, the Committee noted that the S.O.Es have hardly made any contribution to assist Government’s budget and its development programmes, as well as the irresponsibly submitting of annual reports to the Parliament.”

The Committee advised the Office of the Controller and Chief Auditor to continue examining all the Ministries and S.O.E.s audit reports carefully and to make sure that budgets are used accordingly.

THE MINISTRY OF PRISONS - $2,951,253 The F.E.C. reports that this is the first budget screening for the new Commissioner of Prisons.

“The Committee was informed that the official separation or hand over of the prisons authority will not be effective till the end of year,” the F.E.C. report reads.

“Unfortunately, the Committee urged the new Commssioner to get up on his two feet and start off with his new operations.”

During its investigation the Committee visited the Olomanu Juvenile Rehabilitation Centre.

“The Committee disappointedly witnessed the situation that the Rehabilitation Centre is in as of today in terms of the environment as well as the healthcare of police officers,” the report reads.

“The Committee fully discovered that not a positive change has come out of the Centre’s services.

“The Committee examined and specifically recommended that the Ministry should consider attaining dispatch equipment for police officers serving at Olomanu in case of threats and emergencies.” According to the report due to the

Committee’s observations, the current condition of the officers shelter was in a very bad stage and ensured that the Ministry has not done anything about it.

“The shelter for officers only is very old and revealed several leakages on the roof,” the report reads.

“The head police of the facility noted that the officers and prisoners cannot get a proper rest in the open house because of the mosquitoes.

“However, the Committee’s main concern is the safety of police officers and due to the state of the shelters; it is very insecure for them.

“The head officer also commented, that some of the facility’s development is financially provided by himself or one of the officers so supplies are made available for the prisoners.”

SAMOA FIRE AND EMERGENCY SERVICES AUTHORITY-  $2,395,291 According to the Committee most hydrants have been buried due to infrastructure development.
“(It is a) problem for the Authority to find the actual location of these hydrants along Beach Road for their use especially if fire breaks out in town,” the report reads.

THE OFFICE OF THE REGULATOR - $1,568,323

According to the F.E.C. the Regulator did not appear before the Committee in reviewing the budget for the Office of the Regulator on the appointed day.

“However, the Committee upheld government’s intention for the betterment of our country as a whole and as a result the Committee accepted the request of reviewing the Office’s Budget on the following day,” the report reads.

“The Committee questioned the cost of license for broadcasting companies and television due to the poor reception witnessing in rural areas.

“The Office confirmed that regular visit are carried out annually by the Office in rural areas to report.

“In terms of broadcasting licenses cost, the Office confirmed that a service provider pays a registration fee of $100.00 and licence at a cost of $3000.00 annually which last for a term of 10 years.” The Committee then made the recommendation that the Ombudsman look at an appropriate measurement of license for broadcasting companies to encourage excellent services for the country especially to encounter the poor television receptions in the rural areas.

THE OFFICE OF THE OMBUDSMAN - $789,591. The Committee Reports that to improve the service, the Ombudsman needs to recruit four experts.“However, only two positions are now funded by the Budget,” the F.E.C. reports.

“It also requested for three lawyers to conduct negotiations of issues now before the Ombudsman which was approved by the Cabinet, however only two were accepted by the Ministry of Finance.

“The Office of the Ombudsman has raised disappointment with the result of their request.”