operation slows

American Samoa

Cost cutting

The American Samoa Cabinet has failed to reach a decision on the next course of action to take to implement the second phase of Operations Reduction in Force (RIF). The operation is aimed at cutting costs to improve the government’s cash flow problems.

The Samoa News says it appears the Lutali administration is losing steam in its budget cutting initiative, a sharp contrast to the haste with which it implemented the first phase of the operation in January.

After the termination of 429 employees in the second week of January, the administration announced the second phase would follow shortly.

But a meeting on February 19 of Governor Lutali and •elected members of his Cabinet failed to come to a decision on the next step to take.

A shorter work week, rolling back salary increases given after :he 1989 freeze on hiring and pay rise, and the termination of ihort term contracts were the three alternatives under :onsideration.

However, the Governor’s chief of staff, Aleni Ripine, says Governor Lutali has given the cabinet members more time to •eview the three alternatives and to report back to the chief executive on February 25 with “solid figures” on how much he government stands to save and how many people will be i flee ted.

Meanwhile, the government is delaying issuing pay cheques o its employees under what has been described by acting freasurer Aitofele Sunia as a “very tight ” financial situation.

Sunia said the department was “scraping the bottom of the >arrel” to pay its employees’ fortnightly payroll bill.

He said the new administration’s collection of revenue owed o the government was very strong when it came in early last nonth, but it has now slowed down as the rest is not easy to ollect.

As the Governor and his cabinet study the next step to take n reducing government spending, the acting Treasurer is withholding the release of tax refund cheques.

Sunia said only under extra-ordinary circumstances, such as imerals, would tax refunds be disbursed, but added these would first have to be verified to make sure recipients were elling the truth.