Samoa Observer

Having a S.N.P.F. annual general meeting empowers members

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Having a S.N.P.F. annual general meeting empowers members

By The Editorial Board 16 August 2022, 6:00AM

Celebrations of Samoa’s 60th Independence anniversary continue on-island and abroad with more festivities scheduled for next month.

One of the benefits of independence anniversaries is the opportunity for a nation and its leadership to stop, pause and reflect on their journey and whether they are on course to get to their destination.

For Samoa some of those questions were probably asked last year, one year before the country celebrated its 60th Independence anniversary, when over half of the voting population went to the polls and picked political unknown Fa’atuatua i le Atua Samoa ua Tasi (F.A.S.T.) party, to give this nation a new Government. 

Those who chose to maintain the status quo and went with the now Opposition Human Rights Protection Party (H.R.P.P.) probably changed their minds, after witnessing the 3-4 months long constitutional crisis, frustrated at the failure by the then caretaker Administration to facilitate a smooth transition.

Therefore, it does not hurt to review the country’s systems and processes, and to offer alternative models of governance systems, which would enable us to arrive at that particular destination we want to get as a nation.

This is why an article (S.N.P.F. yet to decide on annual general meetings) published in last Thursday’s 11 August 2022 edition of the Samoa Observer is timely and promotes debate on proposed reforms, which if accepted will ensure there is transparency and accountability within and by State-owned entities.

The Minister of Finance, Mulipola Anarosa Ale-Molio'o, had suggested in April this year for the 50-year-old Fund to revisit its legislation to consider holding annual general meetings so that all contributors to the SNPF are kept in the loop on major decisions by the management and the Board.

According to Mulipola, this is the only way for the voices of the Fund's membership to be heard. The Minister's comments coincided with revelations early this year that she was kept in the dark on the decision to give a portion of this year’s dividend payments to pensioners and charitable organisations.

Last week the C.E.O. of the Fund, Pauli Prince Suhren, told Samoa Observer the management and Board are still looking at various aspects of the proposal as well as undertaking a review of the S.N.P.F. Act before they can make a recommendation to the Cabinet. 

"This is because S.N.P.F. is not a company," Pauli said. "Therefore we need to consider all aspects and make sure that it is in line with the S.N.P.F. Act before we can make a recommendation to Cabinet. 

"We need to review the Act and look at all the other issues before that."

In retrospect we see the rationale of Minister Mulipola’s recommendation for the Fund to hold annual general meetings. An A.G.M. will enable the S.N.P.F. membership to access information on the financial status of the Fund, the state of its various investments here and abroad as well as its vision for the future.

We firmly believe the Fund can only become accountable and transparent to its members and the public through the A.G.M.  

One of the advantages of having an A.G.M. is that the date for the meeting could be set by law, most often within three months of the end of a financial year. The annual report will also be presented at an A.G.M. and will have sections dedicated to a summary of the year’s activities; a record of the year’s achievements; a preview of what is planned for the next year; and a statement of the organisation’s vision.

We accept the position of the Fund’s C.E.O. who also emphasised that the S.N.P.F. is not a company and should have an A.G.M. for its shareholders like companies do. 

But then what is wrong with embracing a corporate culture that would boost accountability and transparency a hundredfold when you make the convening of an A.G.M. every year a cornerstone of your Fund’s operations?

It was only recently that the Fund celebrated the 50th anniversary of its establishment. Congratulations on the milestone. Perhaps, the management and Board of the S.N.P.F. should share what is the Fund’s vision for the next 50 years, and how it envisages its members playing a more active role in its decisions relating to investment and even dividend payments.

We cannot think of a more suitable platform – supported by government-initiated legislation – than an A.G.M. which can have an empowering effect on the members to have more say over how their funds are managed as well as invested. 

By The Editorial Board 16 August 2022, 6:00AM
Samoa Observer

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