Samoa Airways and STEC yet to file reports

By Sialai Sarafina Sanerivi • 30 January 2024, 11:00PM

Two state-owned enterprises failed to submit annual reports for the year 2022 as highlighted in the latest Annual Report for Public Trading Bodies Performance for 2021-2022.

The report has been made public by the Ministry of Public Enterprises (M.P.E.) upon receiving approval from the Cabinet this month.

The two, namely Polynesian Airline Ltd (also known as Samoa Airways) and Samoa Trust Estate Corporation (S.T.E.C.), have not met the deadline for submitting their annual reports.

It is noted that the reason for the delay in submitting these reports is the ongoing audit of their accounts.

The Chief Executive Officer of the Ministry of Public Enterprises Elita To'oala briefly confirmed that the two entities have been "reminded" of their legislative requirements and that the report has been given to the board of directors, chief executive officers and ministers to inform them of the delay.

According to the Public Bodies (Performance and Accountability) Act 2001 Section 23, a public body shall prepare reports and financial statements per the requirements of Schedule 6 and shall forward such reports and financial statements in the manner provided in Schedule 6.

The chairperson of a board shall, by notice, immediately advise the shareholding ministers and the responsible minister upon becoming aware of any information or event, which may materially affect the financial position of the public body.

The notice shall: (a) be in writing; (b) specify the nature of the information or event; (c) quantify when practicable the possible and likely effects of the information or event on the public body; and (d) specify what steps have been taken, or are being taken or proposed, to rectify any adverse effects.

If the chairperson of a board is the minister or the responsible Minister, the board shall, by ordinary resolution, appoint another director to advise under subsection (2).

As highlighted in the Annual Overall Report, there are 27 public bodies (P.B.) providing various services for the benefit of the people of Samoa.

Of that number, only 25 submitted their Annual Reports 2022 and are included in the Annual Overall Report for the stated reporting period.

"The performance of P.B. has a significant impact on the public and the economy in general through the goods and services P.B. provides," the report highlighted.

"The government has its policy for PTB to earn at least a 7 per cent return on equity (ROE).

"P.T.B. (Public Trading Bodies) are also required to pay 35 per cent NPAT dividend to the Government.

"Mutual Societies are required to be profitable however they are not required to pay dividends to the Government but to its contributors and policy owners. Public Beneficial Bodies are mandated to provide quality services to the public while at the same time, managing finances to ensure sustainability and less reliance on Government budget.