Church pays $1.7 million annually for loan
The Congregational Christian Church of Samoa’s annual payment of $1.7 million to the Samoa National Provident Fund (S.N.P.F.) for their $15.11 million loan should be reconsidered.
That is the recommendation by the Komiti o Feau Eseese in their report leaked to the media.
The loan from the S.N.P.F. was to assist with the building of the Jubilee Church project and other developments.
Last year, the C.C.C.S. celebrated the opening of their $17.39 million Jubilee Church.
According to the report, the total of amount of the loan that was taken out in 2015 was $15,116,760.17 with the annual payment of $1,743,300 that was first paid on 9 December, 2016. The loan amount was increased to 15,209,955.68 due to the interest, the report noted.
“After the first payment, the loan amount was reduced to $13,466,655.68."
“The second payment of $1,743.300 made on 13 November 2017 and by that time, the loan balanced was increased to $14,426,357.69 due to the interest."
“This means that $959,592.01 went directly to the interest leaving only $737,707.99 paid to the loan balance."
“To date, $3,486,600 has been paid, yet the balance of the loan is $12,683,057.69 due to the interest.”
According to the report, if the annual payments continue rather than monthly payments, the Church is looking at paying $23 million and payments will be completed by the year 2029.
The committee recommends for the church to make the monthly payments of $145,275.
Furthermore, the Committee recommends that their investments into the Unit Trust of Samoa should be withdrawn and allocated to pay for the Church’s loan at N.P.F.
According to the report, suggestions were made to eliminate other payments such as the $5,000 for the youth sports for the year 2019-2020.