Is there a fine line between vested interest and conflict of interest?

The Webster’s Dictionary defines vested interest as an interest (such as a title to an estate) carrying a legal right of present or future enjoyment specifically: a right vested in an employee under a pension plan. : a special concern or stake in maintaining or influencing a condition, arrangement, or action, especially for selfish ends.

What is a Conflict of Interest? A conflict of interest occurs when an individual's personal interests – family, friendships, financial, or social factors – could compromise his or her judgment, decisions, or actions in the workplace. Government agencies take conflicts of interest so seriously that they are regulated.

So which one of these actions best describes what Agriculture and Fisheries Minister, La’auli Leuatea Schmidt did in regard to the whole fiasco about the China direct tour contract going to a company registered under his daughter?

In the article which appears in the Sunday Samoan titled ‘HK firm defends tour company deal’, Travel Focus (Hong Kong) Ltd said they had to respond to criticism and comments in the local media surrounding the visit of a Chinese delegation to Samoa and provide clarification.

The company said the 28 May 2023 visit of the Chinese delegation was the culmination of "hard work" dating back to 2012 and credited the "vision" of the current Agriculture and Fisheries Minister, La’auli Leuatea Schmidt which "prompted investment opportunities".

"It was the vision of Hon. Laaulialemalietoa Leuatea Polataivao that prompted investment opportunities and drew our own interest in the tourism link that we saw was central to a direct flight between Samoa and China," read the statement issued by Travel Focus (Hong Kong) Ltd.

One thing is clear from the statement. La’auli had known about the China deal since 2012 and he acted on it by either supplying the information to his daughter or registering a company under her name.

It is very easy to conclude that the logistics of the tour operation may have been planned way before six weeks ago when the tour company Samoa Royal Tours Ltd was registered as a business in Samoa.

Did La’auli have a vested interest in the direct China flights or was there a conflict of interest? The statement from Travel Focus seems to point to the latter.

As a servant of the people, which all members of parliament and ministers are, should he have passed this information to the Samoa Tourism Authority or other operators to allow them to form a synergy and work together, ensuring that the money from these trips was distributed at a larger scale?

In 2012, La’auli was the Speaker of the House. That is baffling if he had been working back then to get the China deal organised. In what capacity did he try and organise this deal? If there is no conflict of interest, then he should come out and say it publicly.

Travel Focus is a private company contracted by the STA and they have all the rights to choose who they do business with. In this case, they have chosen a business company that has links with a Cabinet Minister.

The same Cabinet Minister who the private company is giving credit to for being one of the great minds behind the deal.

In its statement, Travel Focus has said: “We estimate at least $1.1m Tala input into the local economy from this first flight. These are the benefits and flow down the economic impact of the industry that we all like to see.”

The second flight arrived on Saturday night. There will be three more flights that will be coming in. Just these five flights will be bringing in revenue exceeding $5 million.

As a businessman, La’auli’s move can be said that of a genius who was involved in planning and investing in this venture and then ensuring that he or his daughter’s company is able to reap the maximum benefit from it.

But the ultimate question is if he used his position in Government to influence the deal and then take advantage of the situation because he had the information what were the logistical requirements of the flights once they landed in Samoa. 

Should he as a good leader and Cabinet Minister have allowed other companies to come together and take maximum benefits of this venture?