State companies run according to law
State-owned enterprises are registered private companies but they are Government-owned and are run in line with the relevant legislation — the Public Bodies Act 2001.
That is the view of Samoa Land Corporation Chief Executive Officer, Ulugia Petelo Tavesi, when he explained how S.O.E. firms in Samoa operated in an interview with the Samoa Observer.
This governance structure also applies to the Samoa Land Corporation and other S.O.E. entities in Samoa.
“This means all profits are received by the (Samoa Land) Corporation. Under the Public Bodies (Performance & Accountability) Act 2001 outlines the clauses for the S.O.E to follow including the S.L.C. and it also outlines the mandates for the state-owned enterprise," he said.
Ulugia said the Minister for Public Enterprises and the Minister of Finance are shareholders on state-owned enterprises on behalf of the Government.
“They are sitting as shareholders for S.L.C. on behalf of Government and it rotates once the Minister changes for the M.P.E. and the Finance," he added.
According to the Ministry of Commerce Industry and Labour (M.C.I.L.)-run business registry, Ministers Lautafi Fio Selafi Purcell and Sili Epa Tuioti were appointed to the SLC board on 31 March, 2016
The Board of directors are Toomata Tua Afamasaga, Tuilagi James Bartley, Su'A Henry Joseph Fruean, Lavea Tupuola Sione Malifa, Tunupopo Patu and Tufuga Fagaloa Tufuga.
According to the Public Bodies (Performance & Accountability) Act 2001 section, the Minister of Finance and each Responsible (M.P.E) Minister may from time to time on behalf of the Government, subscribe for or otherwise acquire all of the shares in a Public Trading Body.
Last week, Prime Minister Tuilaepa Dr. Sa'ilele Malielegaoi said Cabinet Ministers, who are appointed as shareholders for State-owned enterprises, are representatives of the Government.