Cabinet has appointed an interim board for the Samoa Airways and interim Chairman is Tupuola Koki Tuala, with members, businessman Taimalie Charlie Ah Liki and Fatu Tielu, the former CEO of the Airline.
This was confirmed by Minister of Public Enterprises, Leatinuu Wayne So’oialo in response to questions from Radio Polynesia.
The Minister did not comment on other queries pertaining to the removal of the previous board members, Papalii Sonya Hunt, Tuia Paepae Letoa, and Muagututia Lafaele Ngau Chun.
Tielu in a brief interview with Radio Polynesia today said “it is time for change”.
Adding they have yet to be introduced to the Samoa Airway Staff but that will be done in the near future.
Radio Polynesia reached out to the MPE Chief Executive Officer, Elita Tooala for comments on the dismissal of the previous board but there has been no response since last week.
Last year the Latu Lawyer firm issued a legal review of the Samoa Airways and cited they allegedly “breached the solvency requirements of the Companies Act 2001, which attract both civil and criminal sanctions.”
The legal review, endorsed by Taulapapa Brenda Latu found the Samoa Airways accumulated debt of up to $80 million.
This placed the Airline in a highly distressed financial position which on any assessment reflects a company which is technically insolvent as it is ‘unable to pay its debts as they fall due.
The legal opinion says the Samoa Airways Board of Directors approved the Lease and it would also appear to be individually breaching statutory directors duties under the same Act by failing to properly inform the shareholder of its financial position and continuing to trade whilst insolvent.
This led the Cabinet to cancel the Samoa Airway’s lease of the Generation Boeing 737-800 aircraft, currently stuck in Australia.
