Government Bends Under Pressure to Release $1M Development Funds

Government Bends Under Pressure to Release M Development Funds

Apia, Samoa – 11 June 2025 – It took less than 24 hours for the caretaker government to overturn an earlier decision to withhold all funding under the $1M District Development Project (DDP) until further notice.

The decision publicized in a letter on Monday from the CEO of the Ministry of Women and Social Development that oversees DDP, said that given parliament has been dissolved, the MPs that Chair and are the official signatories for the release of the project funds, no longer apply.

However, in an urgent meeting between the Ministry and the Executive Officers and selected representatives of the Upolu District Development Councils (DDC) yesterday, the pressure to release the funds was overwhelming that Cabinet met urgently and decided to overturn the earlier decision to withhold the funds.

Some DDC representatives who attended the meeting told Talamua that the political pressure and views expressed were overwhelmingly against the caretaker government with the looming elections.

The argument was that despite the dissolution of parliament, the funds in the 2024/2025 Appropriation had been passed by parliament in June 2024 and must be available and be released by the end of the financial year on 30 June 2025.

Moreover, the DDCs are legal entities that operate as registered societies with the Ministry of Labour and governance and accountability of funds expenditure are within their reporting processes.

Water tanks and an improvised set of drinking taps for school children that was part of the renovations of the Letogo Primary School funded under the $1M District Development Project.

Government Statement on Social Media
In a statement published on the government’s social media page last night, the Deputy Prime Minister Tuala Iosefo Ponifasio said that they are aware that a few constituencies have not received the full allocation of their 3rd million after providing financial reports and requirements of the project.

Other constituencies may have received the first allocation and are still waiting for the second and final instalment. However, other constituencies have yet to receive full payment from the third million tala.

According to Tuala, the funds are now available for disbursements under the Million Tala Project until 30 June 2025.

He urged the District Development Offices to comply with the requirements and conditions for the release of funds so they can receive payments before 30 June.

Queries to the Minister of Finance
Since the original announcement on Monday night, several former MPs have queried the decision and have written directly to the Minister of Finance and copied the PM and Minister of Women and Social Development.

They argued that the District Development Councils have committed to various projects, and some have been completed, and they will be placed in debt if the funds are withheld.

Handpainted fabric

A young artist and entrepreneur of Toamua village who got funding assistance under the project for his hand painted fabrics for sale.

Chairman of the Faasaleleaga No. 3 Co-operative Society, Papali’i Li’o Oloipola Taeu Masipa’u said the First Tranche of $700,000 as well as the second tranche of $300,000, both approved in the Main Estimates for Financial Year 2024/2025 have been stopped from being disbursed by Government, either by the Audit Office or the Ministry of Finance, or by Cabinet.

He said that his District Committees have prepared plans for the anticipated funds and have made contractual commitments including the payment of school fees for 57 students enrolled at NUS, USP, TESESE and the AOG Theological College in Tafua, as well as road and civil works. These projects are directly reliant on the timely disbursement of grant funds upon satisfaction of the financial processes imposed by the various Ministries: MWCD; MOF and the Samoa Audit Office.

On 20 May 2025, Fa’asaleleaga No 3 District representatives signed a further Grant Agreement for the third million together with the Minister of Finance, on behalf of the Executing Agency, being the Ministry of Finance as well as the Minister of Women, Community and Social Development as the Lead Agency for the Program.

“Although signed on 20 May 2025, our District has still not received the initial tranche of $700,000,” he said.

“The delay in disbursement has a direct impact on our contractual and financial obligations, and the Ministry’s failure to disburse such funds will result in losses to the Fono Faavae as well as the entire District, for which the program is intended to benefit,” said Papalii.

“We are at a loss to understand why funds which were approved for the very purpose of the Program by Parliament during the 2024/2025 Budget, appear to be withheld either by officials (acting without authorization) or perhaps reflecting a major decision by the Government to withhold funds to a current Government program, whilst currently serving in Caretaker mode.”