Delayed election risks economic disaster

The caretaker Minister of Finance, Lautimuia Uelese Vaʻai, has warned that the country could face an “economic disaster” if the upcoming general election does not quickly result in the formation of a new government.
He compared the possible impact of a prolonged political stalemate to the COVID-19 pandemic or a natural disaster.
In an exclusive interview with the Samoa Observer, Lautimuia said his main concern is that Samoa might experience a repeat of the 2021 election impasse, which left the country without a fully functioning government for weeks. He explained that Samoa is currently operating on only 25 per cent of the previous year’s budget, a constitutional safeguard that permits limited expenditure during an election period. This arrangement was activated after Parliament failed to pass the 2025–2026 national budget before it was dissolved for early elections.
“I pray that once the election is completed, we will immediately have a new government,” he said. “We cannot prolong this like the 2021 election because the impact on the economy is enormous. If this drags on, the government cannot continue operating on the 25 per cent mode. That will cripple the economy.”
He cautioned that if the political uncertainty continues, the caretaker government may be forced to consider declaring a State of Emergency under Article 105 of the Constitution, based on advice from the Attorney General and endorsement by the Head of State. Lautimuia described such a scenario as unavoidable if the economy is allowed to deteriorate further.
The Minister pointed out that the 25 per cent spending cap is already placing pressure on the economy. Essential government services are restricted, development projects have been put on hold, and the private sector is beginning to feel the slowdown.
“Remember, the private sector depends heavily on government contracts. Many projects are now blocked because we are only operating at 25 per cent. This is not sustainable," he said.
Lautimuia also raised concerns about the effect on Samoa’s development partners. He said that several donor-funded programs have been frozen until a new government is sworn in, as international partners are watching Samoa’s political stability closely. “If they see instability, they won’t release the money,” he warned. “That is my biggest concern because we have worked hard to build their confidence, and right now that confidence is at its highest level. But if the election drags on, we risk losing it.”
“There is a lot of aid that has stopped at the moment. Our partners are looking to see stability in Samoa before they commit further resources. That’s why I strongly hope that by September, we will already have a government in place, the national budget will have been passed, and the country will be running properly.
“I pray for a peaceful election. I also pray that God appoints leaders who truly love Samoa and put the country first, not those who prioritise politics or personal interests. We need leaders with the nation’s wealth and future at heart.”
