The government of Samoa Prime Minister Tuilaepa Sailele Malielegaoi has been “blasted” by outspoken Member of Parliament Olo Fiti Va’ai for failing to meet payments apparently owed to Virgin Australia, the partner in the Virgin Samoa airline partnership with the Samoa Government.
In a report in the Samoa Observer newspaper, Olo criticizes a failure by the Samoa Government to pay $US4.02 million in jet fuel excise tax rebates.
Olo is quoted saying, “The government didn’t follow through with deals and signed agreements made with this Airline and this is the end result, we end up paying for their mistakes.”
Samoa Observer had published a demand letter from Virgin Australia and signed by CEO John Borghetti, that was leaked to the newspaper in May 2017.
It is apparently a response from the airline to Prime Minister Tuilaepa Sailele Malielegaoi’s notification that Cabinet had decided not to renew the joint venture between the government, Virgin Australia and Grey Investment Group.
“I would like to bring to your attention that Virgin Australia intends to pursue the US$4m in jet fuel excise rebates, which is currently owed by the Samoan Government to the VSAM JV,” Borghetti is reported to have written Tuilaepa.
The letter also points out that under Article 24 of the Convention on International Civil Aviation, to which Samoa is a signatory, provides that jet fuel for international air services shall be exempt from customs duty, inspection fees or similar national or local duties and charges.
Virgin Australia is reported to be in negotiations with the Samoa Ministry for Revenue on the issue.
