Members of the public have been urged to report any non-citizens and businesses that are operating businesses reserved only for Samoan citizens.

The notification came from the Ministry of Commerce Industry and Labour (M.C.I.L.) Chief Executive Officer, Pulotu Lyndon Chu Ling as authority continues to monitor illegal business activity. 

All foreign investment enterprises (F.I.E.s) or businesses with foreign shareholding have been warned of the legal ramifications in doing business prohibited for foreigners. 

In a public notice, Pulotu referenced section 14 of the Foreign Investment Act 2000 that states it is an offence for a non-citizen or a company having a shareholder who is a non-citizen to be engaged in or be employed at any business or economic activity which is specified in the Prohibited List or Reserved List. 

The reserve list includes; bus transport services for the general public, taxi transport services for the general public, rental vehicles, retailing of food and drink items, sawmilling, and traditional elei garment designing, and printing using the traditional upeti method. 

“If a non-citizen is found to be involved in any of the reserved activities as outlined above the Ministry will take appropriate action to address this issue,” said Pulotu. 

The latest notice from the M.C.I.L. follows ongoing reports on foreigners in the guise of Samoans running businesses that they are forbidden to operate. 

Samoans working for retail shops that spoke to the Samoa Observer reported having foreigners supervise them on the side of cashiers and are quick to hide when authorities come for inspections. 

There have also been reports of young Samoan women in arranged marriages with foreigners to allow the non-citizen to tap into the local market by running retail shops. 

Pulotu recently confirmed there were foreigners and Samoans who were warned of corrupt deals to use local business licenses for the reserve activities.  

Deputy Prime Minister, Tuala Iosefo Ponifasio has been firm on the Ministry of Customs and Revenues position to crack down on such activities. 

In doing so the M.C.R. has made amendments to its regulations with those applying to renew or register business licenses going through a stringent process to identify the actual beneficial owner. 

Tuala said from the 300 shops that applied for renewal of business license in 2023, the Alcohol Control Board eventually granted liquor licenses to 160 of those businesses. 

Getting a business license does not automatically mean a business is granted a liquor license as the Board carries out further investigation and assessment for the sale of alcohol.

“The other 140 were suspected to have been operated by foreigners under the guise of Samoan ownership,” Tuala said. 

“They are subject to further scrutiny and although granted liquor license they are still under the watch of the Ministry and subject to random inspections.” 

 The Deputy Prime Minister had attested to people operating businesses without licenses and pointed out an issue is Samoans opting to rent out their shops to foreigners and allow them to use their business licenses.

He also echoed the lack of coordination within Government ministries to take an effective approach to solve the problem.