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Governor responds to complaints about favoritism and refund checks

[SN file photo]
fili@samoanews.com

In response to public complaints of favoritism in the issuance of refund checks, Gov. Lolo Matalasi Moliga has prohibited the Treasury Department from releasing tax refund checks, under the “Expedited Tax Refund Policy”.

The governor’s policy outlined in a memo last month to ASG Treasury Uelinitone Tonumaipe’a comes amid many public complaints over the alleged expedited issuance of refunds checks to tax payers, who are connected to senior officials at Treasury Department or the Executive Branch while others - especially cannery workers who usually are the first ones to file taxes - have to wait.

Several ASG employees claiming favoritism by Treasury on issuance of refunds, and took their complaints to social media, blasting the government, and targeting the governor’s office, especially the governor for not putting a stop to the practice. Concerning to some ASG employees is that they claimed to have requested expedited issuance of their refund checks due to an urgent family medical situation but were turned down, while others with connection to senior Treasury officials have had their tax returns expedited due to a funeral or other family fa’alavelave.

And Lolo made mentioned of the complaints in his May 18th memo, with copies sent to the Deputy Treasury Keith Gebauer, Deputy Treasurer Tina Va’a and the Governor’s Chief of Staff, Fiu J. Saelua.

“Complaints on the unfairness in the issuance of tax return refunds prompted this policy declaring abating the current practice of expediting tax return refunds,” the governor wrote.

Notwithstanding the impact of ASG’s cash flow position and delaying the ascertainment of reimbursements from the US Internal Revenue Service (IRS), which funds the child tax credit, Lolo said the “public perception of special treatment extended to friends, families and those with influence casts doubt on the integrity of this administration with respect to practicing the principles of equality and equity.”

Accordingly, said Lolo, the Expedited Tax Refund Policy “prohibits approval of any request for expedited tax refunds” with full compliance to the issuance of tax refunds based on the date the return was filled and aligned with the chronological order of issuance.

(Treasury Department has in the past, when issuing a statement about the release of refunds, reminded tax payers to keep in mind their filing date, which is when and how tax refunds are disbursed.)

“The Governor or the Lieutenant Governor in the absence of the Governor is vested with the authority to suspend the application of this policy,” the memo said.