For several months now, local and off island vendors have complained about ASG’s inability to pay its bills.
Last month local businessman Lesa Lolo Pilimai owner of Pacific Refrigeration and air conditioning openly criticized the government for neglecting its debts which was hurting small businesses like his,
Lesa said most of the local businesses are experiencing serious cash flow problems because the government isnt paying its bills.
He was of the opinion that the government was spending money on frivolous things ,money that could be spent on paying vendors.
For example sending so many people off island for the same meetings when only a few would suffice, and hiring employees who were just collecting paychecks without much work to do,
Normally the Treasurer is the appropriate official to ask for information on ASG financial status , However Treasurer Ueligitone Tonumaipe’a doesn’t respond to emails or return phone calls , So we sought answers from the governors executive Assitant Iulogologo Joseph Pereira,
Iulgologo acknowledged vendor complaints about ASG not paying its bills.
He said, “I know that this has been a complaint which precipitated public complaints from businesses.
Iulogologo says,Treasury is bearing the burden of these business complaints but he personally addressed the issue with Treasurer Tonumaipe’a and found out that the fundamental challenge is agency driven.
Here’s the executive assistant o Governor Lolo’s take on the situation:
When an agency engages in emergency purchases, instead of going through the procurement process, the vendor is authorized to perform the work without completing the required paper work.
When the vendor submits the invoice for payment, the director knows that he or she will encounter problems because the transaction will be deemed an after the fact purchase which violates standing policies.
Instead of addressing the issue promptly it sits on the Director’s desk while the vendor awaits payment.
Iulogologo goes on: When the vendor follows up on the payment with Treasury, they’re told that that there is no payment because there is no paperwork.
Treasury is made to bear the brunt of the fury of the vendors wrath because they were told that the paperwork was with Treasury knowing full well that the invoice has not left the respective office.
When the paperwork is finally prepared and funneled through procurement process it is denied by the Procurement Office because it violated the “after-the-fact” policy
While the originating agency plays “ping pong” with the Procurement Office, substantial time has lapsed while the vendor’s frustration mounts.
KHJ News asked for ASG’s accounts payable and receivables however that was not provided.
Instead Iulogologo said recent meetings held with the Treasurer and his staff revealed collections have stayed aligned with revenue projections.
The governor’s right hand man gives this advice: In the future the vendor should not undertake any work or provide products unless the paperwork is completed first.
I would strongly recommend that the vendor awaiting payments should go back to the originating agency to obtain copies of the paperwork supposedly sent to the Department of Treasury for payment. If the paperwork is not approved by the Procurement Office it will not go to Treasury for the issuance of payment.
