2005, No.4


AN ACT to amend the Public Finance Management Act
2001. [22nd
April 2005]
2005, No. 4 Public Finance Management 11
Amendment Act

BE IT ENACTED by the Legislative Assembly of Samoa in
Parliament assembled as follows:-

1. Short title and commencement-(1) This Act may be
cited as the Public Finance Management Amendment Act 2005
and shall be read with and form part of the Public Finance
Management Act 2001 (the Principal Act).
(2) This Act shall commence on the date of assent by the
Head of State.
(3) Notice of commencement of this Act shall be published
in Samoan and English in the Savali and one other newspaper
circulating in Samoa.

2. Interpretation – Section 2 of the Principal Act is
amended:
(1) By inserting the expression “(1)” following the heading
to the section.
(2) By inserting in subsection (1) in alphabetical order the
following definitions:
“budget performance report” means a report comparing
original budget figures for a financial year with actual
results;
“corporate plan” means the corporate plan referred to in
section 22 of the Public Bodies (Performance and
Accountability) Act 2001;
“Shareholding Ministers”, in relation to public bodies means
the Minister of Finance and the Responsible Minister
and, where the Minister of Finance is also the
Responsible Minister, a Minister who is approved by
Cabinet to be a Shareholding Minister for the purpose;
“subsidiary” has the same meaning as in section 2 of the
Companies Act 2001.

3. Specific responsibilities of the Minister – Section 5 of
the Principal Act is amended:
(1) By deleting paragraphs (c) and (d) and substituting the
following:
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Amendment Act

“(c) Periodic appraisal of the efficiency with which
individual projects and other aspects of
economic plans approved by the Legislative
Assembly, as well as ongoing activities, are
being implemented; and”.
(2) By relettering paragraphs (e) to (h) inclusive so that they
are relettered (d) to (g) in alphabetical sequence.

4. General responsibilities of Responsible Minister –
Section 7(1) of the Principal Act is amended:
(1) By deleting the word “his” where it first appears and
substituting the words “the head of department”;
(2) By deleting the word “his” where it second appears and
substituting the words “the head of department’s control”.

5. Specific responsibilities of the Financial Secretary –
Section 9 of the Principal Act is amended by deleting the
expression “(k)” after the words “modifications to paragraphs”
and substituting the expression “(n)”.

6. Responsibilities of heads of departments – Section
13(1)(j) of the Principal Act is amended by deleting the word
“Review” and substituting the word “Revenue”.

7. Access to information and removal of authority to
deal with public moneys, etc – Section 14(3)(d) of the
Principal Act is amended:
(1) By deleting the expression “subsection (3)(b)” and
substituting the expression “subsections (3)(a), (b) or (c)”.
(2) By adding after the words “Public Service Commission”
the following:
“and if the accountable officer whose authority is
suspended is a head of department, a copy of the notice
and reasons shall be forwarded to the Responsible
Minister and to the Secretary of the Public Service
Commission”.
2005, No. 4 Public Finance Management 13
Amendment Act

8. Estimates – Section 23 of the Principal Act is amended:
(1) By deleting the heading “Estimates” and substituting the
heading “Estimates and Supplementary Estimates”.
(2) By adding the following after subsection 3:
“(4) The Minister shall lay before the Legislative Assembly
in accordance with Article 94 (Appropriation of
expenditure) of the Constitution and this Act a statement of
supplementary estimates for:
(a) Any expenditure in excess of or without
appropriation that cannot reasonably be met
within the unforeseen expenditure vote as
provided by section 29 (Adjustment for
unforeseen expenditure); and
(b) Any reductions of expenditure; and
(c) Any increases or decreases in the estimates of
receipts, grants and other revenue.”

9. Appropriation required – Section 25 of the Principal
Act is amended:
(1) By adding to subsection (1) the words “or
supplementary appropriation” after the words “authorised by an
appropriation”.
(2) By adding to subsection (5) the words “or
Supplementary Appropriation Act” after the words “an
Appropriation Act”.

10. Charge for supply of goods or services – Section 27
of the Principal Act is amended by deleting the expression
“section 13(1)(1)” and substituting the expression “section
13(1)(k)”.

11. Functions of the Board – Section 37(1)(e) of the
Principal Act is amended by deleting the expression “section
13(1)(k) and (1)” and substituting the expression “section
13(1)(j) and (k)”.

12. Application of this Part – Section 91 of the Principal
Act is amended by adding the following after subsection (6):
14 Public Finance Management 2005, No.4
Amendment Act

“(7) This section shall not apply to the Central Bank of
Samoa.”
13. Corporate Plan and Budget – Section 92 of the
Principal Act is amended:
(1) By deleting the section heading “Performance and
management plan and budget” and substituting the section
heading “Corporate Plan and Budget”.
(2) By deleting the words “performance and management
plan” wherever such words appear in subsection (1) and (2) and
substituting the words “Corporate Plan”.
14. Financial activities – Section 93 of the Principal Act is
amended:
(1) By inserting the words “Subject to subsection (3),”
immediately after the figure (1); and
(2) By deleting the words “The chief executive” in
subsection (1) and substituting the words “chairperson of the
Board”; and
(3) By inserting subsection (3) as follows:
“(3) Notwithstanding subsection (1), where the chairperson
of the Board is either the Minister or the Responsible Minister,
the Board of Directors of the relevant public body shall by
ordinary resolution appoint a person, other than the chairperson
of the Board, to advise on the financial activities of the public
body for the purposes of this section.”
15. Private treaty loans – Section 98 of the Principal Act
is amended:
(1) By deleting from subsection (1) the words “with the
consent of the Minister”.
(2) By deleting from subsection (3) the words “by virtue of
the Minister’s consent”.
16. Contract for works, supplies and services – Section
102 of the Principal Act is amended by deleting subsection (2)
and substituting the following:
“(2) Notwithstanding subsection (1), the Financial
Secretary may issue procurement guidelines by way of a
2005, No. 4 Public Finance Management 15
Amendment Act

Treasury Instruction which shall be binding on public
bodies.”

17. Reports and financial statements – The Principal Act
is amended by deleting section 104 and substituting the
following:

“104. Reports and financial statements–(1) Not-
withstanding the provisions of any other Act, a public body
shall prepare and furnish to the Shareholding Ministers and
to Treasury, within four months after the end of the public
body’s financial year, an annual report on the operations of
the public body and a budget performance report for that
financial year, together with financial statements.
(2) Before furnishing financial statements to the
Shareholding Ministers and Treasury, a public body shall
submit them to the Controller and Chief Auditor who shall
report on the extent to which they present fairly the public
body’s financial transactions and position and comply with
its Corporate Plan.
(3) On receipt, the Responsible Minister shall cause the
reports and financial statements, together with the report of
the Controller and Chief Auditor, to be laid before the
Legislative Assembly forthwith if it is in session, and if not,
at the commencement of the next ensuing session.
(4) When a public body’s annual report is reproduced
for publication or for other purposes, the financial
statements and the report of the Controller and Chief
Auditor shall be included in the reproduction.”

18. Powers of inspection of the Financial Secretary –
Section 105 of the Principal Act is amended:
(1) By deleting the words “performance and management
plan as submitted under section 92 (Performance and
management plan and budget)” in subsection (1) and
substituting the following:
“corporate plan as submitted under section 92 (Corporate
plan and budget) or that there is or may have been an
16 Public Finance Management 2005, No.4
Amendment Act
irregularity in the management of money or property in
the ownership or custody of the public body”.
(2) By inserting in subsection (4) the word “in” after the
words “other than”.
19. Reporting of Suspected Offence – The Principal Act
is amended by inserting the following after section 105:
“105A. Reporting of suspected offence-(1) A person
who has knowledge of any circumstances which may cause
the person to consider that a public body has or may have
failed to implement the corporate plan as submitted under
section 92 (Corporate plan and budget) or that an
irregularity in the management of money or property in the
ownership or custody of a public body may have occurred
shall report those circumstances to the Financial Secretary
and to a Shareholding Minister or to both Shareholder
Ministers.
(2) A person who in good faith alleges a breach of the
Act to the Financial Secretary or to a Shareholding Minister
shall be immune from civil suit and shall not be penalised in
any way (whether the allegation is proved or not) because of
the person’s actions in reporting the matter.”
20. Disciplining of heads of departments and chief
executives in certain circumstances – Section 117(3)(i) of the
Principal Act is amended by deleting the word “approval” and
substituting the word “approved”.
21. Ex-gratia payments – Section 119 of the Principal Act
is amended by adding the following after subsection (5):
“(6) This section does not apply to ex-gratia payments
approved under Public Service Commission regulations.”
22. Write-off of losses – Section 120 of the Principal Act is
amended by deleting subsections (2), (3) and (4) and
substituting the following:
“(2) The Financial Secretary shall, following any
investigation that the Financial Secretary thinks necessary in
2005, No. 4 Public Finance Management 17
Amendment Act

a particular case, take such action as is provided in Treasury
Instructions.
(3) All amounts approved for write-off shall be reported
in the financial statements.”

23. Public Bodies – Schedule 4 of the Principal Act is
amended:
(1) By deleting “Special Projects Development
Corporation” and its empowering Act the “Special Projects
Development Corporation Act 1972”.
(2) By deleting “Samoa Visitors Bureau” and its
empowering Act the “Western Samoa Visitors Bureau Act
1984” and inserting in alphabetical order the “Samoa Tourism
Authority” and its empowering Act the “Samoa Tourism
Authority Act 2002”.
(3) By deleting “Samoa Communication Ltd” and
substituting “SamoaTel Ltd”.
(4) By inserting in alphabetical order “South Pacific Games
Authority” and its empowering Act the “2007 South Pacific
Games Authority Act 2002”.
(5) By deleting “Accident Compensation Board” and
substituting “Accident Compensation Corporation”.
(6) By deleting “Televise Samoa” and its empowering Act
the “Televise Samoa Corporation Act 1994” and inserting in
alphabetical order “Samoa Broadcasting Corporation” and its
empowering Act “Samoa Broadcasting Corporation Act 2003”.