The suspended Member of Parliament for Faleata No.3, Lealailepule Rimoni Aiafi said he will take legal action against the Minister of Agriculture and Fisheries, Laaulialemalietoa Polataivao Schmidt for allegedly making defamatory comments.

This is in regards to accusations made by the Minister on the EFKS TV's Soalepule program earlier this month claiming that the Lealailepule played a great part behind the bankruptcy of one of the long-time serving and iconic hotels in the country, the Aggie Greys Hotel Limited which owns Sheraton Samoa and Aggies Greys Hotel and Bungalows in Apia.

In an interview with this newspaper, Leala denied all allegations made towards him and urged Laauli to provide evidence for his accusations.

"I will be taking legal action against him for defamation. Tuilaepa is also pursuing his legal action against this guy for all the lies and fabricated allegations against the former administration," he said.

"I am also now pushing for the appropriate Ministries to do an investigation on this Minister to find out the source of all this money he suddenly has.

"And if Laauli has any proof that I am behind what he's accusing me of then bring it forward. All hot air and no substance as always. When are they conducting that forensic audit? What's holding them back? "

Laauli during the Soalepule program claimed that the front row people who tried to sell the Aggie Grey Hotel were led by Lealailepule, Laauli Alan Grey's children and a consular which he said he won't name.

"They sold the hotel to a millionaire from China for $150million who is the current owner," he added.

Asked by the program host what Leala's connection to the hotel was, Laauli said he was the spokesperson (middleman).

"After it was sold, they went and did another loan at the Development Bank under Aggie Grey's name and after they did that, the hotel suffered from a massive flash flood and greatly impacted the hotel but that what these guys' duty, to build a wall behind the hotel to protect the hotel," the Minister said.

"We obtained information that they got the money to build that wall but they never did."

Laauli claimed that the new owner is now suffering from corruptions practiced by the former owners of the hotel including Leala.

"After the hotel suffered within these great two years from this, they built the bridge too. And the hotel was also stuck for almost two years again while they constructed the bridge so the hotel couldn't manage to get some money as it was stuck for a long period," he said.

"And now they can't pay over $50million they loaned from the Development Bank, leaving the investor without any knowledge of what to do."

Leala explained that the Grey Family had to put in their own money of over $50 million tala to complete the hotel which is worth much more than the loan. He said if the hotel was in arrears, the appropriate thing to do on such transactions is to foreclose.

"The Government has now offered to help, that's fine but the big question is what are they doing to all the other hotels locally owned that are facing foreclosure and some already up for sale? Why aren't they doing the same to those hotels also? All I am saying is I know the hotel is worth much more than the current loan so money owed to DBS is all safe," Leala said.

"The government is saying they're trying to save this iconic hotel. That's exactly what HRPP did by giving them a loan to help rebuild the hotel after that cyclone in 2012. With the loan arrears it's not the governments fault. So why are they blaming the previous government? What they're doing is giving the new owners free money.

"Anyone with a right mind knows that the loan given to rebuild the hotel is much lower than what the hotel is worth, which means money loaned can still be recovered.

"So which government was making the right decision? The one that loans the hotel the money or the one that gives them free cash worth over 30million tala? You make the judgement Samoa. And if they're doing this to save this hotel, why not do the same to all the locally owned hotels that are facing foreclosure from the banks?

"Which Government made the right decision? Is it the one that gave them a loan to redevelop or the one that gave them free money taxpayers $30million tala at a time when the cost of living is unbearable for many? And are they dishing out money to help all the other financially troubled hotels? Why save one and not all, especially the locally owned?"

Meanwhile, the Samoa Government now holds 30 per cent preference shares in the hotel with the Minister for the Ministry of Public Enterprises (M.P.E.) Leatinu'u Wayne So'oialo said that the shares are worth SAT$30 million of Aggie Greys Hotel Limited’s mortgage with the Development Bank of Samoa (D.B.S.) and are for a loan, which dates back to 1993 under the former Administration.  

The intervention by the current Government, said Leatinu'u, is based on the national interest having considered the premium facility and location of the hotel. This was done against the backdrop of Samoa hosting the Commonwealth Heads of Governments Meeting (C.H.O.G.M.) in October 2024, when the expected guest numbers for the summit are likely to exhaust all major and premium accommodation venues in the country.