Utu comes
out against dissolving ASPA and returning it to admin
by Fili Sagapolutele
Samoa News Correspondent
Former ASPA chief
executive Utu Abe Malae does not support a Senate bill that would
dissolve the American Samoa Power Authority and transfer its
operations and assets to the Executive Branch creating the American
Samoa Utility Department.
The bill was
introduced Monday and passed in second reading the following
day. It was then presented for third reading on Wednesday but
the final vote has been postponed. However, the measure was not
on the agenda yesterday and Senate President Lolo M. Moliga says
it should be presented today for final reading and a vote.
ASPA was established
by law in 1982 as a semi autonomous agency and its first chief
executive officer was Utu Abe Malae, who now serves as Development
Bank of American Samoa (DBAS) president.
Responding to
Samoa News inquiries, Utu said it will be "ill-advised"
to return ASPA to the executive branch. "A main reason is
that the rules and procedures used in a government operation
such as Public Works or ASG in general, are not designed to operate
a utility effectively," he said.
"I recall
that one of the biggest complaints when the electric utility
was under Public Works was the unresponsiveness of the procurement
system to the emergency needs of the power plant. You don't
want the budget officer second guessing an order for a cylinder
head or a submersible pump during a crisis."
Utu does not
see any advantage to such a transfer, saying that "productivity
would plummet and with it, morale."
Offering some
suggestions for ASPA to consider, he said, "I see advantages
in selling the utility to private operators though. But when
you do that, then there must be keen oversight from the government
- similar to the way TOFR's Petroleum Management Office and the
American Samoa Petroleum Cooperative oversee the petroleum tank
farm. Without such oversight, a privatized monopoly would be
worse behaved than a government monopoly," said Utu.
He also suggested
areas where ASPA needs urgent improvement. "ASPA must always
strive to avoid behaving like a monopoly even though it is one.
By that I mean: it must be constantly reviewing the efficiency
and productivity of its operations and strategically plan ahead
to reduce the cost of energy through excellent management and
use of technology," he said.
The former ASPA
leader said savings must pass on to customers and not be kept
by the utility to finance its inefficiencies. It must not overcollect
on the fuel surcharge - and an independent reviewer must check
on this every year," he added.
"It must
be fair to employees (e.g., by following a structured grievance
procedure) and not run roughshod over them should they disagree
with management or even the board," he continued. "It
must ensure that a highly skilled and productive cadre of technical
employees are on staff."
He also said
that ASPA must balance outsourcing routine work and upskilling
workers to perform the more difficult assignments and ASPA must
practice good governance and management by separating the functions
of the board and the CEO.
"Only the
CEO should report to the board. No single board member should
be allowed to browbeat the rest of the board into submission,"
said Utu. "ASPA must stop using its monopolistic and economic
might to hire attorneys to negotiate on its behalf or on behalf
of the special interests of the board at the expense of employees
or hurting a business relationship. You only need one attorney
for the utility and [the attorney] should not be reporting to
the board."
Utu said ASG
can do its part to help ASPA by paying utility bills on time.
"The ASG leaders cannot expect ASPA to lower its rates
when the utility is cash poor because ASG doesn't pay its bills,"
he said.
Utu also points
out that ASPA engineering and operational staff must work continually
on reducing technical and non-technical losses in the water and
power transmission and distribution as well as on the supply
side (power plant).
"In summary,
if you want to reduce the cost of electricity to consumers:
you need a skillful, experienced technical staff and a visionary
management team to get things done," he said.
At a hearing
on Thursday in the House over power services to Aunu'u, Vice
Speaker Agaoleatu Charlie Tautolo said he supports the Senate
measure to return ASPA to the executive branch.
(See separate
story on ASPA hearing in the House.)
Citing that power
needs of Aunu'u has been long ignored, Agaoleatu said the people
are frustrated and "they aren't getting their money's worth."
Reach the
reporter at fili@samoanews.com.
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