The damaging unbudgeted 60%, 70%, 80% rise [1]
Tuesday, August 8, 2006 - 16:45. Updated on Thursday, July 16, 2015 - 13:55.
Editor,
Talofa Fotu, with all due respect, our Tongan language takes too long and allows too many avenues to tangent. Please allow me to respond.
Based on my experience as a graduate Student Of International Affairs and Global Politics, and over 20 years of working for the US Government and now working for the American Samoa Government as a special advisory to the governor on petroleum. I will use my experience to elaborate on the issues being discussed.
1. Pay Raise, like all other expenses, is budget driven.
I have two major project that is on my plate at this time. A Bottom Loading Rack for tankers at the American Samoa Government (ASG) Tank Farm. Engineer estimate is $2.5 million. I let out the bid last week after 4 years of revenue collection from taxes on petroleum products sold in the territory. I was not allowed to let the bid out until I have the money in the bank.
The United States Federal Emergency Agency (FAA) has directed my office to relocate the tank farm at the airport. Engineer Estimate is $8 million. FAA also informed our office to start on a Design & Build Contract right away. FAA is funding this project.
My point here is that all projects, is budget driven; there is either funds on hand that has been collected over the years or funds to be collected from some source in the future to cover the expenses, before the contract is out for bid.
Now, Mr. Fisi'iahi, did the Government of Tonga have money on hand that has been earmarked for pay raises when the the "Brilliant" Pay Raise took place. Now, let me make this clear, I am not asking whether there was money not budgeted for anything and was reallocated for the pay raise. I asked, was there a a line item in the government budget for 2005/2006 identifying several million of dollars for a pay raise?
2. How did you arrive at the percentages used for pay raise.
One of my function is to assure that the Territory of American Samoa gets an interrupted supply of high quality petroleum product at the the most reasonable price. The key word here is reasonable price, not at the price that the people can afford. As much as I feel for those who are working for the minimum wage of US$2.35 per hour, the oil company is here to make a reasonable return for their investment and our office has to charge and collect rent and fees to assure that the tank farm facilities are maintained to meet the current and future need on the territory and also to comply with all the requirements set forth by the US regulatory agencies. I received calls, sometimes threatening, that the price of fuel is too high people cannot afford it. My heart goes out to all of us but the fact of the matter is, "Cost of some goods and services is never based on how much
we can afford"
You pretend to submit that the pay raise was to bring up the salary of those below the poverty line. Why was it necessary to justify an increase of 70% and 60% for those in the "upper and top class"?
3. Where was the money for the pay raise coming from.
I see, and it appears to me that after much thoughts and work you identify money by reallocation. We did that a few years here in AmSam. The US Coast Guard handed a mandate to the governor that the American Samoa Government Fuel Dock must be renovated to meet required specifications within a year or they will close down the Fuel Dock. Because time was of the essence here, the reallocation of funds was necessary and was done with the understanding that this project was 1. an unbudgeted item and 2. it is a one time expense. Otherwise, the project would have waited until the following years budget proposal for Capital Improvement and sources of fund would have been identified.
Tonga's pay raise is not a one time expense. What should have been done was to wait until the next budget year to be introduced as a line item for the government expenses.
4. The biggest pay raise.
The current state of poverty of any country is the combination of many factors that include but not limited to over population, uneconomical cultural behavior and so on and you cannot assume that with a pay raise you are going to eliminate this poverty from our shores. I have been President of the Tongan Community of American Samoa for over 10 years and I have seen enough convince me that even a pay raise cannot elevate a lot of us from the poverty level. After cyclone Val of 2003, several Tongan families were given up to $10,000 to re build their damaged dwelling. In all cases, half of the money goes into the church Misinale and the rest send to families in Tonga. The bare minimum repair was done to each home. Unfortunately, in a flood 2005, none of these Tongan families were eligible for assistance for obvious reason. I was the one that had to tap dance in front of the Federal Emergency and Management Agency to reverse this decision.
You hit the nail on the head there Mr. Fisi'iahi. But without realizing it, you are the one comparing apple and oranges. I may make that much money but you should see my expenses...right of the bat..Our mortgage is $900 per month, I pay US$ 400 per month for three boys at private school, I pay $10,000 per year for another son at a Junior College. I travel a lot because of work and with the high cost of fuel, I pay $50 a week for gasoline for my truck...earlier this year I was at a hospital in the States for 5 days and walked out with a bill of $25, 237 to pay (unbudgetted)...you get what I mean.
5. To avoid Bankruptcy.
I feel like I am preaching to the choir here. You knew and I know that the price of goods and services in Tonga was already high before the pay raise. All the reason for you to think more about the timing of the pay raise. The fact of the matter is again, the price of the goods and services have gone even higher as an indirect result of the Government collecting more money to cover for the pay raise. Corruption at Customs is a problem but not an issue here.
6. Government should be run like a business.
When I first got here to American Samoa in 1992, the Tongans of the Free Church of Tonga were known for their farms and plantations. It was a scene to behold every Saturday morning at the local market with one wing filled with produce form the Tongan community. Today, it is no more.
I grew up in my father's plantation in Tonga. Paid my way through school from the sale of our crops. I still have that farming blood in me and I started late 1990's with talo, manioke and banana at the Maleimi Valley. I also love to raise pigs. My enthusiasm was high until the harvest begin. More than half of the crops were "borrowed" but the Tongan Community, one quarter goes to the thieves about an eighth goes to the rats and the rest is for the family. For several years now I have not been able to recover my cost on fertilizers, fuel, chemicals and workers from the plantation.
Last week, 10 roast size pigs went to the Misinale of one of the local Tongan church. I know they are not going to pay for these pigs even though they promised, just like they did for the past 5 years.
This year, I have told myself and the boys at the house, if the trend continue, than the plantation of the Malaimi Valley will also be no more. Like the farmers of the Free Church of Tonga, there were so much love, no one pays anything anymore and I cannot afford to subsidize this plantation too much longer.
We are paying US$3.27 per gallon on petrol (gasoline) here in American Samoa. People are crying all the way to the Fono (Parliament). Last week I was interrogated by the Fono. The issue is, the price of the fuel is too high, a lot of the people in American Samoa cannot afford it. My testimony is, it is the nature of the business. The oil company must realize a reasonable return to their investment and they have to sell it at this rate. Anything below that (or lower price to show our love to the people) may force the oil company to leave the territory.
Mr. Fisi'iahi, I dare you to open a store in Tonga or better yet, open a gas station and sell your fuel to the people with love, at the rate they can afford...and see how long you are going stay in business...oh, you may not use any of your profit for any other purpose, like travel, new car and cocktail parties.
Again corruption in our government, mismanagement of funds, the Tonga Market in Pago Pago are not issues here.
Contrary to your observation, since the pay raise, working for the government has been difficult. Take Tonga High School as one of many affected institution. There have been so many changes and often times, classes are left without the proper teacher. Continuity as a strength needed for development has been compromised often with the reassignment of teachers.
I grew up in Tonga and saw my Dad working like a horse to make ends meet for us. My brother and I joined him as two extra work horses at the plantation until we finished high school. We weren't paid with money but we felt rich with the appreciation of getting things done. I am sure that is how Kosema, Pilimi and Papela and 'Apikotoa feels after a day of job well done. Ko e me'a ko e 'oku fakahela ia ki he kau tama ko'eni kuo hanga 'e he hiki vahenga 'o fakatokolahiatu e kau koekole 'i Fofo'anga.
We moved to the US for higher education and I joined the the US Marines. If there is one principle of life that I learned after all these years is that "the best of intentions and plan can be useless, counterproductive and even harmful when ill timed."
I am not against the pay raise. But I know it was rushed and ill timed. I also feel that upper-class should not have been included (not at this time at least). But, the most damaging is the fact that the Pay Raise was unbudgeted.
Faka'apa'apa atu.
Devil Dog Kava.
slkava [at] samoatelco [dot] com