The Samoa Government has been advised by a top Lithuanian law firm that it is still liable for Samoa Airways lease on a Boeing 737-800 plane as guarantor.
Samoa Observer reports it has obtained a copy of the correspondence, dated 25 November 2021, from Averus Law Firm offering the legal advice to the Attorney General Su’a Helene Wallwork and her assistant AG Fuimaono Sefo J. Ainu’u.
The letter says the position taken by the law firm is that the Samoa Government as the “guarantor” is primarily liable for the national carrier’s lease for an amount not exceeding US$20million over a 8 year period.
It also warns that any decision by the Samoa Government to terminate the lease of the aircraft without the fault of the lessor would immediately lead to Fly Aircraft Holdings Eighteen Limited claiming for damages.
The law firm also advised the Samoan government that it considers that the Lease terms could be renegotiatd nearing the end of the PBH rent period in August 2022 provided there are no other material commercial/technical circumstances on behalf of Lessee.
A recent report from a special Cabinet committee headed by the Minister for Public Enterprises, Letinu’u Wayne So’oialo, had recommended the lease of the plane from Ireland based Fly Aircraft Holdings Eighteen Limited be terminated claiming the national airline was insolvent.
