CPO: Advance lease payments are against the law

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Chief Procurement Officer, Ti’amasunu Dr Mikaele Etuale, says the practice of advancing lease payments to landowners is against the law.

He made the comment during a hearing of the House Government Operations Committee Friday concerning the awarding of construction contracts and enforcement of procurement regulations.

Manu’a Representative Alumamalu Ale Filoialii wanted to hear from the CPO if it’s true that some leases are paid well in advance.

According to Ti’amasunu this practice has been allowed in the past but it’s against the law and has created problems.  

He said when he was working in the Governor’s Office landowners will be waiting many hours up there to request advance payments for land being used by the government.

The CPO explained that lease payments are spelled out in the lease agreement and they should be followed. Usually the agreements call for monthly payments but landowners request payments years in advance.

He said in some cases, the head matai or sa’o of some families which have received advance payments pass away and their successors discover that there are no more lease payments because they had already been paid to the Sa’o.

Ti’alemasunu told the hearing he stopped all lease payments for a family whose Sa’o title was vacant. He has informed the successor that only after the court has rendered a decision on the title, and the claimant has registered with the Registrar’s Office will the Procurement Office approve lease payments retroactive to the date that the payments were stopped.

During the hearings Pago Pago Representative Vesiai Poyer Samuelu asked about the status of the new dock at the Malaloa marina.

He noted that a groundbreaking was held last November but up to now there’s been no work on the project.

Ti’amasunu said the construction contract was awarded to Silva Construction and its true that there’s been no work on the dock as the contractor is awaiting a permit from the US Army Corps of Engineers.