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ASPA Update: Money owed to creditors decreases a lot

This photo provided by ASPA, shows the “first smoke” of engine number 3 on March 3, 2017 — considered an important milestone for the new Satala Power Plant.  According to ASPA, many electrical and mechanical subsystems were required to make this first smoke a reality. It says it worked closely with its primary contractor, Louis Berger, to reach this important milestone.  The power plant will continue to be put through its paces, as testing and commissioning continues. “This is the critical stage then,” ASPA
Layoffs or hour reductions still on the table, but no rush
fili@samoanews.com

American Samoa Power Authority has not made a decision on whether to implement a layoff or reduction of working hours, while ASPA’s accounts payable has decreased since last year, and the ASG semi autonomous agency is looking next month to commission its new Satala Power Plant and the solar park on Ofu Island.

WORKFORCE

ASPA executive director Utu Abe Malae confirmed to Samoa News in early December 2016 that ASPA was planning layoffs as it was accumulating too many accounts payable (money owed to creditors). A week later, Utu said that ASPA had not ruled out the reduction in working hours versus layoffs.

Asked if ASPA has made a decision on whether to implement a layoff or reduction in working hours, Utu responded yesterday, “No, we are approaching this serious issue systematically and do not want to rush. We are promoting attrition first.”

Asked about the number of employees affected if a layoff or reduction in working hours is implemented, Utu said, “All 421 employees — we are already down from 490 in 2013. However, an average of 80 employees would be directly affected if you are looking for a number.”

Asked if any employees have opted to take early retirement, Utu said five have already retired or relocated to the states.

When asked last December for the reason behind the proposed layoffs, Utu said, ASPA have accumulated too many accounts payable over the years. “Even after we catch up and become current paying our bills, we will still be short $150,000 per month,” he said at the time.

Asked about the latest status of accounts payable, Utu said yesterday, “There has been a big improvement and I would like to thank all our vendors, especially the oil suppliers, for their patience.”

“The accounts payable has been reduced from $14 million in July 2016 to $3.6 million in March 2017,” he said.

ASPA POWER PROJECTS

During a cabinet meeting in January this year, ASPA managing director Paul Young announced that the commissioning of the Ofu Solar project and the new Satala Power plant is delayed due to unforeseen circumstances.

Asked for an update, Utu said yesterday that Ofu solar will be commissioned mid April while the Satala power plant to be commissioned late April, along with the new ASPA operations center building in Tafuna.

As to the reasons for the delay, Utu cited issues related to financing, the timing of disbursement from grantor, and logistics related to availability of equipment from manufacturers.

“During the commissioning process of the Satala Plant — at the moment — we will come upon problems with the operation of the plant that will have to be corrected. This is the critical stage then,” he said.

Utu also noted that shipping to and from the Manu’a islands “has improved immensely”. (Samoa News notes that the ASG’s new multi million MV Manu’atele is operating to and from Manu’a, improving service for the island group.)

The new Satala plant will replace the one that was destroyed in the 2009 tsunami and the Ofu solar park, will have the island powered by solar — similar to the Ta’u project that was commissioned late last year.

HUMAN RESOURCES

Samoa News received unconfirmed reports last week that Young is now heading ASPA’s Human Resources division. Responding to Samoa News questions, Utu said Young is still Managing Director and has been assigned to make specific improvements to human resources operations.

“Since human resources already comes under the Managing Director there is no issue here. The person who used to be at Human Resources reports directly to the Executive Director,” Utu said.

Among the specific improvements to Human Resources, says Utu are:

•    install checks and balances to ensure that payroll is accurate every pay period;

•    ensure deductions are correct and accurate especially for medical and life insurance benefits;

•    review the supplementary benefits programs so that they are actuarially sound;

•    revamp the performance measurement system; install an attendance reporting system that ensures accountability;

•    the flex time that was followed before was found to be a failure and has been discontinued;

•    recommend organizational changes that make use of the "real skills" of an employee, rather than what he or she is purported to possess.