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Starkist Will Shut Down for 5 Weeks

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Starkist Will Shut Down for 5 Weeks Senators hear input (l-r) Director of Health Motusa Tuileama Nua, Gov. from territory’s biggest Lolo M. Moliga, US Army Major Douglas A. Taylor, US Navy Lt. beer importers 2 Christopher Johnson, Lt. Gov. Lemanu Peleti Mauga, Med- icaid Office Director Sandra SSBCI program to close King-Young, and the Governor’s Chief of Staff Fiu Johnny Saelua. down later this month Johnson and Taylor are in the territory to work - for free 3 - with the local Department of Health. See story in today’s Lali sec- Highlights of local tion. [photo: Leua Aiono Frost] soccer action B1 ONLINE @ SAMOANEWS.COM Talitonuina e Fa’amausili C M agava’a o Inisinia Vaega Y K Tosova’a malo DAILY CIRCULATION 7,000 LALI PAGO PAGO, AMERICAN SAMOA WEDNESDAY, SEPTEMBER 13, 2017 $1.00 is proud to present... It’s confirmed: Our Athletes to the 2017 Asian Indoor StarKist will shut MARTIAL ARTS GAMES Turkmenistan Ashgabat September 17 - 27, 2017 down for 5 weeks Isaac Silafau - American ANNOUNCEMENT SPELLS HEARTACHE FOR EMPLOYEES, HARD TIMES FOR THE ECONOMY by Fili Sagapolutele aware of the situation, and the gov- Samoa’s track & field hopeful Samoa News Correspondent ernor is taking steps to ease the finan- StarKist Co., has confirmed that its cial burden on the economy attributed cannery operations in American Samoa to the shutdown. For example, a letter will shut down for at least five weeks, is to go out soon to directors “to be beginning in the later part of next mindful in their spending due to loss of month. revenues”. Other measures will be con- Samoa News received reports late sidered when the governor meets with last month from industry sources and the relevant directors. some cannery workers that the StarKist In his July cover letter that included Samoa plant will shut down soon for a the proposed fiscal year 2018 budget, long period of time, but there was no Lolo informed Fono leaders that it’s firm date, and the shutdown is due to a “important to remember and to take project the company is working on. note that the forecast revenues for fiscal A couple of cannery workers said year 2018 are predicted on the con- they were told early this month that the tinued maintenance of StarKist’s cur- shutdown would last four to five weeks, rent production and employment level.” starting sometime next month. “If any of these two elements change StarKist Samoa, in a brief state- downward, projected revenues will ment released yesterday afternoon plummet reciprocally,” he said, adding through StarKist Co., officially con- that the same holds true of the Admin- firmed that it will shut down operations istration’s proposed revenue measures from Saturday, Oct. 21st until Sunday, already transmitted to the Fono. C M Nov. 26th. The StarKist Samoa plant It remains unclear at this point, how Y K is expected to re-open Monday, Nov. much impact the five-week StarKist 27th. shutdown will have on ASG’s pro- “The StarKist Samoa plant will jected revenues. temporarily shut down manufacturing Last month, StarKist Samoa produc- for facility upgrades and to install new tion shut down for one-week due to fish equipment, which will increase effi- supply shortages. ciencies at the plant,” said StarKist Co., This time, the more extensive shut- corporate spokesperson Michelle Faist. down comes amid the looming holi- American Samoa’s only track & field competitor to the 5th Asian Indoor “We recognize this shut down is a days, towards the end of the year, with and Martial Arts Games is Isaac Silafau. disruption not only to our workers, but several revenue measures pending in For the first time ever, the territory is sending seven local athletes to com- also to the community and our business the Fono including a proposal to estab- pete in 2 out of 21 sporting events set to take place Sept. 17-27 in Ashgabat, partners and we appreciate their under- lish a new 7% sales tax for retail goods. Turkmenistan. standing during this time,” she said, Samoa News notes that anytime Everyone on Team American Samoa is a wrestler, except for Silafau, 26, adding that the StarKist Samoa man- there is a shutdown at the cannery whose favorite events are the 100m and javelin. agement team has communicated the — which employs some 2,000 workers The local delegation departed the territory Monday night. temporary closure to Gov. Lolo Mata- — it not only has a major effect on its Silafau isn’t just some kid off the street. lasi Moliga. workforce, but also companies pro- He is an athlete. And he’s good at what he does. His greatest accomplish- “We appreciate the Governor and viding support services. And the shut- ment in life, so far, is qualifying for the Olympics in Rio, and winning a pair his team for their ongoing support” said down for such a long period of time, of Gold Conference Medals in javelin. StarKist Samoa. means no weekly paychecks for the The 26-year-old is the son of Fiu and Mercy Silafau who lists his home- The Governor’s Office confirmed majority of cannery workers. (Continued on page 5) yesterday that Lolo has been made Two local businesses contacted by (Continued on page 5) Page 2 samoa news, Wednesday, September 13, 2017 American Samoa Government Senators hear input OFFICE OF PROCUREMENT from territory’s big- INVITATION FOR BIDS gest beer importers IFB-093-2017 CURRENT METHOD OF TAXING IMPORTED BEER IS Issuance Date: September 13, 2017 Closing Date: September 22, 2017 OPEN TO MANIPULATION, SAYS GHC REID No later than 2:00p.m (local time) by Fili Sagapolutele because it’s not true. 1. INVITATION Samoa News Correspondent Speaking in Samoan, she Sealed bids are invited from qualified firms to provide “Janitorial Services for Pago Local general manager said if the excise tax on beer of South Pacific Distributors is approved, that doesn’t mean Pago International Airport” for the Department of Port Administration. (SoPac), Mike Tolmie has made GHC Reid will pay a lesser 2. RECEIPT & OPENING OF BIDS a public claim that the Lolo import tax. Furthermore, GHC Administration’s proposal to Reid is not asking to “reduce Sealed bids will be received by the Chief Procurement Officer, American Samoa change the way tax is imposed our excise tax” that is paid to Government, Tafuna, American Samoa 96799, until 2:00 p.m. (local time), September 22, on beer will result in more taxes the government. 2017 at which time and place the sealed bids will be publicly opened and read. being paid by SoPac, and less She claimed that some com- by its competitors. panies are using invoices that 3. MANDATORY- PRE-BID CONFERENCE The statement, made during are not correct, whereby the a Senate Budget and Appropria- invoices do not come directly A MANDATORY Pre-Bid Meeting and Site Visit for all contractors will be held on tions Committee hearing yes- from the manufacturer of September 20, 2017 at 10:00 a.m. at the Pago Pago International Airport-Conference terday, prompted Olivia Reid- the goods they bring in. She Room. Bids will not be accepted from bidders who are not present at the pre-bid Gillett, president of G.H.C Reid believes the reason for these meeting. & Company to respond, saying many revenue measures tar- that a correction needs to be geting excise tax is that the gov- 4. CONTRACT DOCUMENTS made, as such a statement is not ernment is losing money on tax true. revenues because not all of the Copies of contract documents, including Plans and Scope of Work can be examined or Tolmie and Reid-Gillett import tax is being collected, as obtained from the Office of Procurement during regular business hours free of charge. were among the witnesses from some companies are not honest 5. The American Samoa Government reserves the right not to accept the lowest or any bid. the private sector who testified with the invoices provided to yesterday on three revenues Customs. 6. The American Samoa Government reserves the right to waive any informality in bidding measures, which include pro- Furthermore, some compa- as may be in the best interest of the American Samoa Government. posed amendments to several nies are not locally owned but provisions of the excise tax, are owned by people off island. such as the beer tax. Therefore, according to her, Currently, excise tax on much of the money earned by imported beer is 190% of the these companies goes off island, DR. ORETA MAPU CRICHTON Equal Opportunity Employer / Affirmative Action value, but the Administration is while GHC is locally owned by Chief Procurement Officer seeking to amend it to 35-cents Samoans, and the money stays per 12-fluid ounces, or fraction here. thereof. She then pointed out that the It basically means 35-cents statement by SoPac is not cor- per can. rect, that the proposed change In his verbal testimony, to taxing import beer “saves us Tolmie said “we have an issue” (GHC Reid) money while they with the changes in the beer tax, pay more.” as it will affect the company, if In the company’s analysis enacted into law. He said upon and written comments - both in its establishment here, “we went English and Samoan - presented out [and] we found the product to the committee, GHC Reid we know is affordable to the said it supports the new method community.” of calculating beer tax, saying But with these changes, that per 12-ounce instead of Tolmie said, “we end up paying invoice cost allows an “even hundreds of thousands of dol- and fair tax calculation for all lars more” and “our competi- beer products.” tors will pay hundreds and “The sin tax must be applied thousands of dollars less,” he equally in the same product claimed.
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