The Samoa Independent Seventh Day Adventist Church (SISDAC) was given the $13 million loan because it has a $35 million security said the chairman of the Samoa National Provident Fund Papalii Panoa Moala in his justification of the borrowing. 

Papalii said SISDAC's loan from the retirement fund was done under the regulations and laws. 

He made the point that the repayment for the investment loans benefits contributors through dividend payout reiterating the investment loan was legally conducted. 

The Chairman made the comments in an interview with the Talamua media where he also went through the criteria through which the church was entitled to the loans. 

He referenced the church has major assets as security and that is a primary requirement to get the loan used to purchase a hotel owned by a former Human Rights Protection Party (HRPP) Minister. 

“If anyone from HRPP is complaining about this, the church has contributed immensely in paying this gentleman’s loan,” he added. 

Papalii went further to say the church owns a two-acre prime piece of land in Apia where its headquarters is located and its value was $23 million and the value of the church's security with SNPF was $35 million. 

“You do the math on the loans of $13 million and if the repayment is defaulted there is not one dirty cent that cannot be recovered from this investment loan. 

“A $13 million loan and $35 million security what do you think? Was the decision from the (SNPF) committee unlawful.”

Papalii said he was mindful of the confidentiality of investment loans but he felt he had to clear the air on what he described as fake news circulating about the lending. 

He also noted the church has a good lending history where it was loaned $4 million and was paid off early with interest. 

According to the chairman, people have also asked about the arrears from the church which he does not deny but is not concerned about it. 

He explained there are internal issues within the church currently before the court and the SNPF understands this has also locked up the church’s finances, pointing out the church leader has assured the loan will be paid off before the end of the year. 

“Arrears is not new there are people who encounter issues and the SNPF provides a grace period,” he added. 

The chairman also used the opportunity to discuss two separate investigations against him that included questions on major investment loans to the tune of $67 million made within nine months. 

He noted he was suspended for three months pending investigations and for the first internal inquiry he said he was cleared because he as chairman did not breach any laws. 

“After that, a second Commission of Inquiry under the Public Bodies Act inquired if there were any policies the chair breached,” he said. 

“What was the outcome, if the claims were true I would not be sitting on the chair.”

In May last year, the cabinet reinstated Papalii following an independent investigation by MOF and the Ministry of Public Enterprises. 

At the time, Minister of Finance Lautimuia Uelese Vaai said the outcome of the investigation found that "the only thing that was proven is there were breaches of the governance policy but there was no proof of theft, fraud, or forgery." 

"That was not substantiated,” said Lautimuia. 

Papalii further stated the $67 million investment loans provided for dividends paid out to contributors pointing out that if the sum was made as fixed deposit in the bank the interest would only be 2.5 per cent. 

But the policy where the lending was done, he added, the interest can go up to 10 percent depending on the money loaned.