Appraisal to reappoint the Central Bank Governor deviates from the process

By Staff Reporters

Apia, Samoa – 26 October 2023: The appraisal and recommendation by the Central Bank of Samoa Board Audit Committee to re-appoint the bank’s Governor for another term of six years, “is not proper and does not comply with the Act.”

Such is the legal advice given since questions were raised over the Bank Board Audit Committee’s memo to the Minister of Finance in July 2023 to re-appoint the incumbent, Maiava Atalina Ainu’u-Enari for another term of six years.

Talamua has learnt that the Governors performance appraisal was undertaken in June 2023 using the Audit Charter and Performance Management Guideline Policy and its appraisal and positive recommendation for re-appointment was submitted close to the end of the incumbent’s initial six year term last August. The Committees report and recommendation was submitted by the Board Audit Committee Chairman, Tuala Patrick Leota.

Cabinet then approved a three months extension (to November 2023) to allow for the process and the legal issues and concerns raised to be addressed.

No Warrant of Appointment for Board Audit Committee Chairman
However, it was later confirmed that there was no Warrant of Appointment duly signed by the Head of State authorising the Chairman of the CBS Board Audit Committee and for him to be a non – executive director of the bank.

An anomaly and position that calls into question the validity of all actions of the Board that involved the Chairman.

Talamua sources confirm that the Central Bank Governor however opposed the legal advice saying the Central Bank of Samoa acted on good faith based on a Cabinet decision – FK dated 25 January 2017 that directed the appointment as a non-executive director.

The Attorney Generals’ office was also blamed as the entity to prepare and issue warrants of appointments and the Governor proposed to the Attorney General to regularize the appointment of the long outstanding warrant as she believed the appointment was legally approved by the 2017 Cabinet decision.

The incumbent Governor of the Central Bank of Samoa, Maiava Atalina Ainu’u-Enari.

Failure to ensure the legal process Central Banks Fault
Talamua has also learnt that the legal position was that it was the Central Bank’s responsibility to ensure that the legal process and requirements of the appointment have been complied with at the time the FK was issued in 2017.

The failure therefore to ensure that the legal process and ensuring a Warrant duly signed by the Head of State was in place for the appointment, falls on an oversight by the Central Bank.

Talamua understands that the 2017 appointment can be regularized with updated directives for Cabinets endorsement.

Advice to advertise the office for the Governor of the Central Bank
The Governor however has been invited to accept the legal opinion of the Attorney General after she challenged that advice.

Given what had transpired, the appointment of the Governor now rests with the Minister of Finance after the defective legal position adopted by the Central Bank of Samoa has been addressed and corrected.

The legal advice is that the proposed re-appointment process adopted by the Board Audit Committee is not proper and does not comply with the Act and there is a need to activate the recruitment process under Sections 16 and 17 of the Act by advertising the office for the Governor of the Central Bank.

The Governor of the Central Bank is appointed by the Head of State on the advice of Cabinet subject to the advice or proposal of the independent panel appointed under section 17 of the Central Bank of Samoa Act 2015.

Under the Act, a Governor can be in office for two terms of six years or a total of 12 years altogether.

The Governor’s first six year term ended in August 2023 and extended for three months – to November 2023.