ADVERTISEMENT

Corporation’s loss in 2016-2017 worries Committee

The Samoa Land Corporation’s financial year 2016-2017 recorded a loss of $2.12 million. 

This did not sit well with the Parliamentary Economic Sector Committee. 

This was outlined in the Committee report in January, 2019 for the corporation’s annual report for the said financial year. 

“The result was mainly due to reduction of earnings from real estate land sale, and the additional provision for doubtful debt to cover for the uncertainty of recovering for some of the old industrial lease balances – that was already recognized in previous years.” 

 The Committee strongly recommended the S.L.C. to enforce the collection of overdue debts from the previous years, as the Committee was of the view that this is a major factor in the deficit recorded by the S.L.C. for that financial year. 

Efforts to get comments from the S.L.C. Chief Executive Officer, Ulugia Petelo who was appointed last year have been unsuccessful as of press time. 

In 2017 Key Performance Indicator (K.P.I.) available on the ministries for public enterprises website indicated that the S.L.C. has been operating at a loss since 2013. 

The K.P.I. is a measurable value that demonstrates how effectively a company is achieving key business objectives.

According to the K.P.I. report Corporation collected $11.29 million. For 2014 there was no profit. The continued losses extended to 2015 and the figure was $9.36 million in 2015.

For the year 2016, the loss increased to $10.8 million, says the K.P.I. report. In 2017, it has dropped to $8.99 million, accumulating a decrease of $2.99 million. 

The K.P.I. report indicated that the net profit after tax show the last time there was a profit was in 2013, which was $510,000.

In 2018, the S.L.C. handed over a dividend payment of $3million for financial year 2017-2018. 

S.L.C. Chairman Lavea Tupuola Malifa said the payment was their way of acknowledging the work of the Government.

The S.L.C. finance and audit committee member, Tuilani James Bartley said for every government trading bodies, they have to contribute 50 percent of their net profit for every financial year to the Government of Samoa. 

“That is why we have given this amount from our financial year 2017-2018 for them to use for their budget next year,” Tuilani said.  

Bg pattern light

UPGRADE TO PREMIUM

Subscribe to Samoa Observer Online

Enjoy access to over a thousand articles per month, on any device as well as feature-length investigative articles.

Ready to signup?