Unprecedented situations in an unprecedented time

By The Editorial Board 15 July 2025, 8:10PM

Last week, several civil servants were not paid. Teachers, nurses, police officers and other government employees waited for this week to receive their pay. These are unprecedented times, and therefore, expect unprecedented issues to arise.

In the first week of July, the cabinet approved 25 per cent of the 2024/2025 national budget to be used as an operating budget. This measure is an emergency provision that is lawful and prescribed in the constitution. It had to be taken after the budget failed and parliament was dissolved, forcing the nation into a snap election. However, if a closer look is taken at the situation, it starts further back. It all began on 3 January 2025.

The police called in the then Minister for Agriculture, Laaulialemalietoa Leuatea Schmidt, to the police headquarters, where he was subsequently charged with defamation and other conspiracy-related charges. What followed led to the downfall of the Faʻatuatua i le Atua Samoa ua Tasi (FAST) Party. Laaulialemalietoa refused to step down from his ministerial post even after being advised by Prime Minister Fiame Naomi Mataafa, forcing her to sack him as a cabinet minister. This led to a petition for the removal of Fiame as prime minister. Three more cabinet ministers were sacked and replaced because they no longer had the confidence of the PM. Then, 14 associate ministers were sacked. We all know how things spiralled downwards from there.

Had Laaulialemalietoa stepped down, as it would have been the right thing to do, we would not be faced with this unprecedented situation. The FAST party would have stayed together, they would have been able to pass the much-needed laws, and the budget would have passed, allowing all government ministries access to the correct amount of funds to maintain normal operations. An elected government would have stayed in place, allowing foreign aid to continue major projects, which are now at a standstill because the donor partners will not touch an unelected government with a pole.

The first hiccup was felt last week when some civil servants were not paid. Some were not paid overtime. The Ministry of Finance confirmed that public servants across Samoa received their salaries this week. However, no one has explained how this hiccup happened. Hopefully, that was the last hiccup to happen and that there will be a smooth flow of salaries for civil servants. We cannot have civil servants not getting paid. By far, they are the biggest workforce in the country and the biggest drivers of economic activity.

While operating expenditure may have taken a little dent, the revenue streams should remain as normal, and there should not be much that takes effect now. If there are to be shortfalls, then it would happen after September, when the three months are over. A lot depends on the election. The days that will follow the final count are going to be crucial. If the new winners stretch it to the given 45 days or if we get to be in a situation where there is a hung parliament, things will just go downhill. The government requires a budget, and the absence could derail a lot of things, including infrastructure projects, maintenance of hospitals, civil service pay, affect health and education and many other essential government services.

The cost-cutting practices have already started. This means that either the budget is not enough and requires these measures, or they need to be done to ensure that overspending does not occur. In any case, this is unlike any situation the country may have been in and requires everyone to work together. This means that political parties must act at the earliest opportunity to form a government and then pass a budget.

Officials are expected to provide a clearer picture of the country’s fiscal position when mid-year financial reports are released later this quarter. Until then, government departments are continuing to operate under tighter controls. We hope that there is enough funding without putting any essential service under stress.

 

By The Editorial Board 15 July 2025, 8:10PM
Samoa Observer

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