The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 1 February 1997Vol. 67 No. 2

What was in the report

p. 26 · Read in the full issue

Su’a Alosamoa Rimoni Ah Chong graduated with a Bachelor’s Degree in Economics from Victoria University in Wellington, New Zealand. He then spent 10 year working with international accounting firm Price Waterhouse in Western Samoa.

His 96-page audit report that pointed the finger at at least four cabinet minis ters was tabled in July, 1994. The gov ernment refused to allow it to be debated until five months later.

Among the allegations in the report are: • That three cabinet ministers con trolled, through their children’s names, a company which unlawfully used govern ment plant and equipment for its sawmill operations for seven months during 1993. • That it directly benefitted people who were either children or relatives of Minister of Public Works Leafa Vitale, Minister of Post and Telecommunications Toi Aukoso and Minister of Labour Vui Viliamu. The report said it was possible the labour minister did not know of the wrongdo ing. The loss to government was $54,000. Vitale is now minister of post and telecommunications, Aukoso is a tackbench member of parliament and

Viliamu lost his seat in last year’s elec tions. • That a fourth minister, Minister of Civil Aviation Jack Netzler, chaired Polynesian Airlines as its board “lost complete control” of its finances, seeking multi-million-dollar bailouts.

The report said millions of dollars was poured into the airline despite a “chronic state of insolvency” and the air line board had an almost “criminal” expectation that the debts would be paid by the government. Netzler has since lost his cabinet post. • That the commissioner of Inland Revenue failed in both 1991 and 1992 to file tax returns for his private business, a funeral parlour, despite a warning from his chief assessor. It also notes regular tax refunds to the commissioner between 1985 and 1989. • That the previous high commission er to Wellington, Lupematasila Auma loane, who was named by the auditor early in 1993 for irregular activity while in New Zealand had misused a further $10,416 not previously discovered. He now heads the Public Service Commission. Ah Chong’s report also queried the activities of the director and deputy director of public works, a former public trustee and senior members of the Public Trust Office. ■