STEC mum on concerns raised on its “continuation as a going concern”


To date, the Samoa Trust Estate Corporation remains mum on queries pertaining to concerns raised by Samoa’s Controller and Auditor General over the Corporation’s financial stability.

The concerns raised over the accumulated losses of $7 million tala which the Auditor says “raises doubts” on the Corporation’s “continuation as a going concern”. 

This was highlighted by the Auditor in the STEC’s Financial Year 2020 Annual Report, which was obtained by Radio Polynesia.

This report was endorsed last year April, but it was submitted recently to Parliament when the FAST Administration took over under Laauli Leautea Schmidt as their Minister of STEC. 

Efforts to get comments from the CEO of STEC, Patea Setefano and Minister Laauli over the past months were unsuccessful as of press time.

The Annual Report says the STEC’s “continuation is a going concern dependent on the ability of the Board and Management to achieve the Corporations planned activities for the coming years.” 

According to the Audit report the recorded trading loss of $2 million and added to the profits and loss appropriation accounts of $5.62 million tala the accumulated loss amounts to $7.7 million tala as of 30 June, 2020.

“The financial statements show a working capital deficit of $1.2 million.

“These factors raise doubts that the Corporation will be able to continue as a going concern and therefore whether it will realise its assets and extinguish its liabilities in the normal course of the business and at amounts stated in the financial statements.” 

Furthermore, the auditor advised the Corporation to engage in donor-funded projects to assist in resolving the going concern issue of STEC but it is subject to management plans.