Part of a $ST2.8 million allocation in the Samoa budget for 2018/19 under the Ministry of Finance is believed to be for payment of a long outstanding debt to American Samoa-based submarine communications cable, ASH Cable, by a Samoa Government owned IT company, Computer Services Limited.
KHJ News reported earlier this year that the Samoa Government had stepped in to bail out one of it’s State Owned Enterprises by paying a debt believed to be more than $US1million owed to ASH Cable
The debt was for the use of ASH’s DS3 cable for internet connections between the two Samoas and beyond.
Prime Minister Tuilaepa Sailele Malielegaoi told KHJ News then that it was “common sense” that government step in and do it.
Government has now taken over the DS3 cable lease which it had originally subleased to CSL.
In an October 2017 letter, the Ministry of Finance instructed all government departments and corporations who use CSL internet services to make all payments direct to the Ministry.
The letter says Cabinet made the decision to revoke the sublease arrangement with CSL in a cabinet decision paper (FK (17) Fa’apitoa 1) and to have all internet payments due to CSL redirected to government through the Ministry of Finance.
But it seems this government directive does not include payments from private CSL clients who still get internet connectivity through CSL using the DS3 cable, apparently now free of charge.
Tuilaepa explained that there are contracts with these clients and they have to be honored.
And he hasn’t ruled out CSL getting out of its internet service provider role saying that this is something government would be looking at given the projected drop in internet charges due to the newly launched Tui Samoa Submarine cable.
“There is no more real reason which would require CSL to receive special support from government,” said Tuilaepa.
