Applications are invited from interested qualified candidates for the Chief Executive Officer position for the Development Bank of Samoa.
This was confirmed in an advertisement released by the Ministry of Public Enterprises, citing the contract is for three years.
The position is currently held by Susana Laulu.
The CEO leads the management and operations of the Development Bank of Samoa to ensure effectiveness and efficiency in the delivery of its mandated services to the public
The CEO is tasked to administer all board activities and advise the Board in the execution of its duties and responsibilities outlined in the DBS Act 2010, the Public Bodies Act 2001 and other relevant legislation including its reporting responsibilities to the Cabinet and the Parliament of Samoa.
Also to promote internal systems encompassing policies, processes and people, which serve the needs of DBS clients by directing and controlling management activities with good business acumen, objectivity, accountability and integrity and to encourage a healthy board culture which safeguards policies and processes.
As reported in October last year, the accumulation loss recorded by the Development Bank of Samoa amounts to $19.37 million tala, this includes the $3.39 million tala losses for the financial year 2020-2021.
This is confirmed in the Development Bank’s annual report, which states that Covid-19 and the State of Emergency implementation from 24 March 2020 in closing off borders for international travel.
The travel ban significantly affected the tourism industry in lost revenue and employment. The loss of revenue affected loan servicing of all tourism clients which accounts for 68% of the Bank’s loan portfolio.
This has been cited by the Auditors as a going concern assumption whereas the bank recognises that may cast significant doubt upon its ability to continue as a going concern. However, as reported since FY2019 and despite the going concern issue, the Bank has consistently continued operation over the years.
As of 30 June 2021, these hotels have been closed for fifteen months. In managing the accumulation of loan balances, the Bank has granted periodic relief assistance by way of reduced interest and repayment to support these clients.
Despite the support of the local market, the level of revenue does not sustain operation and loan servicing.
The government through the budget for FY2022 has appropriated funds to support tourism.
The non-performing loans (NPLs) has been a major challenge to the Bank; the high level of non-performing loans is mainly with the tourism industry and the rise in it is caused by a combination of Covid19, poor loan servicing and postponement of recovery action.
The Bank has also considered other viable options such as debt-to-equity conversion, and the purchase of prime properties in addition to market sale to recover these loans.
