SNPF Chairman to respond to Management Letter of Concern

By Lagi Keresoma/

Apia, Samoa – 01 March 2024– A letter of concern from the Samoa National Provident Fund (SNPF) management to the Minister of Finance, Lautimuia Uelese Vaai has warranted an investigation of the Board’s decisions.

In a press conference yesterday, Lautimuia confirmed receipt of the letter of concern.

He said the letter expresses SNPF management’s concern over the approval by the SNPF Board of $67 million worth of loans to 6 businesses within a 9 month period.

Lautimuia had just returned from overseas and had not had time to check for an update on the issue but confirmed that the Board Chairman Panoa Papalii Tavita Moala had been given the opportunity to respond to the concerns raised in the letter.

“We sought advice and for natural justice to be served, we should give Papalii the chance to respond,” he said.

Lautimuia said the normal process when such matters arise in Government Ministries and Corporations is a person is suspended while an investigation is conducted, however, the next step will depend on the response from the Board Chairman.

SNPF Board Chairman, Papalii Panoa Tavita Moala.

Board has the power & authority to approve or not
Lautimuia clarified that the SNPF Board has the power and authority to approve or not any loan applications.

The SNPF policy of lending investment loans is not new because this is how the Fund operates, “they lend on an interest charge which generates revenues and which in turn pays for the dividends to the members and Government.”

Lautimuia said there are views that the SNPF decisions should be Cabinet’s responsibilities not the Board.

He however said the reason why the decision should be made by the Board is to minimize any political influence in decision making.

“That way, decisions are business based and not politically influenced, so it is best to leave the decision making to the Board and Management,” said Lautimuia.

He confirmed that such cases had happened before, and it could happen again but in-order to move forward, SNPF should look at amending some of their regulations and policies if need be.

Minister happy SNPF employees have spoken up
Lautimuia is receptive to the SNPF employees voicing their concerns.

“Issues have happened before but they could not voice their concerns because of fear of losing their jobs, so I am grateful that they have spoken up,” said the Minister.

The important aspect of the letter of concern is whether releasing of funds was done in the proper process.

“Lending is not the issue, but the issue is whether the process in approving these loans were followed,” said Lautimuia.

He emphasized that the priority is that the Funds services to its members and the public are maintained as required by law.