Revenue drives govt. decision

Prime Minister, Tuilaepa Sa’ilele Malielegaoi, has confirmed the government’s plan to turn the multi-million-tala Samoa Land Corporation (S.L.C) building at Tuana’imato into a hotel.

The confirmation comes amidst reports that Tuilaepa, in a strongly-worded letter, had told the Corporation to vacate the building so that it could be turned into a money-making venture. Located at the Faleata Golf Course, the $4.25million building was opened in 2011.

During a media conference, Tuilaepa said the decision that was made by the new Minister of Public Enterprises, Lautafi Fio Purcell. And the Prime Minister supports the decision.

“The government’s vision is to run it like a business,” Tuilaepa said. “Running it like a business will generate income to finance the government’s budget.”

Tuilaepa said Minister Lautafi saw the potential for the government to generate revenue from the building at Tuana’imato so he asked the Corporation to move to the second floor of the Vaitele market.

The Vaitele market was also funded by the S.L.C. It remains largely unused.

The Prime Minister said after the Small Island Developing States (S.I.D.S) Conference at the end of this month, Samoa will then prepare to host other international meetings including the Tuna Commission’s meeting as well as the Commonwealth Youth Games next year..

With all these meetings happening in Samoa, Tuilaepa said people would need somewhere to stay. And the S.L.C’s building at Tuanaimato is an ideal venue.

“This is one of the quickest ways to generate income,” he said about accommodation providers.

Tuilaepa said Cabinet last week endorsed the decision by Minister Lautafi.

“The next step is to advertise the space for anyone interested to make use of the space (at Vaitele) that we had received so many complaints about.”

Contacted for a comment last week, Minister Lautafi did not confirm or deny the claim.

He said, however, that nothing is official “until further notice.”

The General Manager of S.L.C. Afoa Arasi Tiotio, declined to comment.

However, an inside source told the Samoa Observer that the management has been told to vacate the building so that it could be turned into a way to make money.

A long service staff member said the instruction came from the Prime Minister.

“So yes, we all aware about the changes,” the source said. “I am pretty sure that before the end of this year, we will move to use the second floor at Vaitele Market.”

The source added: “There’s nothing much we can do if that was from those above us.” When the Samoa Observer visited the second floor of the Vaitele Market last week, work has already begun to clear the space for the Corporation.

Of multiple slots available on the second floor, only one room is being used by the Samoa Water Authority. The rest of the market remains largely unused.

Opened a few years ago, the $5.7 million market, built by S.L.C, includes an expansive crops hall, a fish market that’s never been used as well as several shops that are empty.

According to a Report of the Controller and Chief Auditor, Fuimaono Camillo Afele to the Legislative Assembly, S.L.C fell $11million short of its revenue forecasts for the 2009-2010 Financial Year.

The report also highlighted that the Corporation overspent by $2.4 million, and paid $2.8 million to a “middle man” based in New Zealand.

“The Corporation did not achieve its budgeted revenue,” says Fuimaono’s report.

“Actual revenue was $11 million short of the budgeted revenue for the year.”

“The Corporation overcommitted to other projects which it could not fund,” the report reads.

OPPOSITION

The government’s plan though has already received criticisms from accommodation providers within the vicinity of Tuana’imato.

Some of them who spoke to the Sunday Samoan on the condition of anonymity said the government is tripping all over the place.

“So in one breath they ask the private sector to develop our properties and then in the very next breath they try to kill us,” says one business owner. “This is yet another classic case of the government competing with the private sector.”

“In the case of the S.L.C, they’ve already done that at Malifa with that new building they’ve just completed. And here they are doing it again here in Tuanaimato.”

“There are many accommodation providers in the area who are already struggling with poor occupation rates.”

Another accommodation provider agrees.

“It’s just sad,” she says. “So they are found to have mismanaged and abused public funds and now we the people who are paying taxes will have some of our business taken away because the government is opening a hotel in the area.” “This is not on.”