The Ministry of Finance says it is moving to address “[speculation] regarding the new fiscal year 2021-2022 budget preparations”, which it claims is being “fuelled by certain media groups”. 

In a press statement issued by the Ministry of Finance on Friday no specific media outlets were named. 

Earlier this month, the Ministry of Finance, Chief Executive Officer, Leasiosiofaasisina Oscar Malielegaoi promised to announce the next day the Government’s budget preparations and plan for a potential budget crisis if Parliament does not sit and cannot pass the budget.

But to date the finance chief has made no such announcement. Repeated efforts to get comments from Leasiosio have been unsuccessful. 

The Government’s budget starts on 1 July and ends on 30 June each year. 

This week, one of Wellington’s most senior lawyers, the prominent Q.C. John Upton, told the Samoa Observer the caretaker Government is approaching “crunch time” and a situation where it has no money to fund its operations until Parliament sits. 

The top constitutional lawyer says, with only one week left in the current fiscal year; after July 1 new budgets will be required to fund the operations of Ministries.

He said the caretaker Government will be unable to secure money without breaking the law unless Parliament sits and approves the expenditure.

On Friday afternoon, the Ministry issued a statement about its budget preparations which it acknowledged were based on the assumption that Parliament would sit. 

The release came shortly after the Court of Appeal issued a clarification that it had not objected to Parliament convening in a recent ruling, an interpretation favoured by the Human Rights Protection Party (H.R.P.P.) caretaker Government. 

“The preparation of the draft 2021/22 Main Estimates was completed in May 2021 as mandated by the Public Finance Management Act 2001,” the statement said. 

“In line with Article 94 of the Constitution of the Independent State of Samoa, the new fiscal year draft budget is currently awaiting approval by the XVIIth Parliament when it convenes for this purpose.” 

The statement further says the Ministry of Finance remains committed to ensuring continuity of Government operations, payment of salaries for all Government employees. 

“And that there is no interruption to the essential services of the Government that are critical to the socio-economic development and national security of the nation. 

“[Our] priority remains with ensuring that the nation remains safe from the COVID19 Pandemic while providing as much support to the economy to support continued growth.” 

Eight weeks since the election, Parliament still has not sat after the major parties were locked in a political stalemate. The Faatuatua ile Atua Samoa ua Tasi (F.A.S.T.) party, despite having won the election and currently enjoying a majority of 26 seats to 24 on the floor of Parliament, could not persuade caretaker Prime Minister, Tuilaepa Dr. Sailele Malielegaoi to convene the Parliament. 

The impending deadline for the nation to pass the budget had caused concern among the nation’s C.E.O.s and public service executives who do not know how a potential financial disaster or Government shutdown will be averted if the stalemate continues.

Judges are adjudicating in a court case relating to whether the swearing in of the F.A.S.T. party as the nation’s new Government was lawful, with a decision expected next week.

It is not known how the caretaker Government will respond to the Appeal Court’s clarification that Parliament may sit while the Supreme Court simultaneously adjudicates on post-election legal challenges that could result in by-elections and changes to the planned addition of a sixth women M.P. to Parliament. 

But until its ruling on whether or not F.A.S.T. was lawfully sworn in, the caretaker Government has failed to deliver on an emergency budget plan to continue operating in the face of uncertainty.