PM wary of supporting financially failed Government projects

Staff Reporters/

Apia, SAMOA – 13 March 2024 – Government is steering away from continuing to prop up failed government projects. Prime Minister Fiame Naomi Mataafa clarified the governments’ position during the discussion of the Samoa Estates Corporation Report 2019/2010/2020 and the governments’ responses to issues raised by the Parliamentary Committee on the report.

For the reported period, STEC recorded loss is $7 million tala despite holding 6,000 acres of government lands in assets.

Once a thriving farming operation devised by the German administration that fed both the export markets in high quality cocoa, copra and coffee, and supplied local consumption in cattle meat and milk and staple food supplies.

But had since been on the down slide when management shifted under the NZ colonial administration and later passed to the Samoan governments since after independence.

Fiame was responding to the former Prime Minister and Leader of the Opposition, Tuilaepa Sailele Malielegaoi’s views that there are services that the Government must continue to support and referred to supporting services such as health and education which he said are run as a business in overseas countries.

The report on the $7m loss was during the HRPP’s time in Government and Tuilaepa said there were lots of efforts put into revamping STEC’s crops development and specifically mentioned the vanilla project that he encouraged to support given its export value compared to returns on copra.

Prime Minister Fiame Naomi Mataafa pointed out that she was wary about these views of government continuing to financially support projects that continue to fail.

She said STEC then known as WSTEC was a very successful business operation, however, that took a downturn when the government took over the decision making and operation of the corporation.

In October 2019, HRPP Government STEC Minister, Sala Fata Pinati (seated) met with representatives from Akabira Orchids of Japan to form a partnership in developing vanilla and orchid industries in Samoa. Image/Press Sec

She said the vanilla project is having a lot of problems. “Many of the projects were only launched but lacked continuity and were not sustainable,” the Prime Minister said.

“If government continues to support these projects, then they should not fail and lose money as business operations. And I do not support them if they continue to fail.”

Under Tuilaepa’s government, STEC also launched a biogas project at Mulifanua through overseas funding and the project no longer works and is looking for interests to operate it.

The Minister of Agriculture & Fisheries Laaulialemalietoa Leuatea Polataivao clarified the challenges faced by STEC which was formerly under his Ministerial portfolio.

He said two years ago when the FAST Government took office, they looked at ways to revamp STEC.

He said the main reason for the failure was staffing and that there were not enough funds channelled to fund STEC’s operations.

“There were not enough funds to operate 50 acres of cocoa with only 5 workers or a 50 acres of Vanilla farm with only 5 people working on the farm,” he said.

New Ministry new measures
Prime Minister Fiame clarified the governments’ move to set up a new Ministry of Lands that will incorporate all government lands under STEC, Samoa Land Corporation (SLC), MNRE and the Samoa Land Commission.

“Under the new Ministry, we are looking at leasing these lands to commercial farmers to operate the lands and support our Export Authority,” explained Laauli who has been behind the establishment of the Export Authority.

“It means leasing out 500 acres of vanilla or cocoa to commercial farmers who can development them to support our export drive through the Export Authority.”

Samoa Export Authority   
Laauli explained that establishing the Samoa Export Authority (SEA) which has been approved by Cabinet will be part of STEC.

Responding to Tuilaepa’s concern about what the Government plans for the STEC property in Otahuhu, Auckland which is overgrown with weeds, Laauli said the property will be the central point for Samoan exporters as the drop-off zone and de-van their containers from Samoa.

Speaking on the STEC report, Tuilaepa said the taro exports in the New Zealand market has been dominated by Fiji taro “as the Fiji dominated outlets promote the best Samoan taro as Fiji taro and their low quality taro as Samoan taro.”

As part of the development Samoan exports to the overseas markets, Laauli is calling the first ever meeting of all exporters this Friday to update on the development of the Samoa Export Authority and issues pertaining to Samoan exports.