This is why change is needed

342 Hits

Dear Editor,

Re: P.M blasts the Samoa Observer 

There are two points of concern with this besides the P.M. acting like a donkey than a leader of a country.

Will the government assign a representative to oversee how the money will be spent by this private company?

How does an investment group borrow money from a government?

The term of investing is defined as: The investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.

Will the Samoan government and Coin Save share all the profits beyond the 7.2 interest of the loan even after the loan is paid off?

I am not aware of all the details of the loan, but based on business ventures, Investment groups/business use its own money/capital to purchase shares of an entity that will yield profit which is part of its business portfolio. 

Only those within the business and its shareholders benefit.

Which means our government will only gain from the interest of the loan. Anything beyond that is strictly a gain for Coin Save and its partners. 

The interest will not be an asset for the government until the loan is paid off. Which means the government cannot plan or rely on the interest from this loan. If Coin Save pays off the loan within a year or two, the government will gain nothing, but Coin Save will continue to profit from all new business it creates from the loan.

It is so unfortunate that none of our so-called elected government officials have any investment background. 

The H.R.P.P and its Cabinet is made of elected officials who lack any banking or business knowledge. It is one of the main reasons we need to vote the H.R.P.P. out of office or vote for a larger number of the opposition party M.P.s to provide legal challenges to the H.R.P.P before they sold off our country. 

 

Dallas 

© Samoa Observer 2016

Developed by Samoa Observer in Apia