The government has sought to separate itself from the financial affairs of district councils, describing them as separate entities despite all district funding coming exclusively from the Treasury.
The claim was made in a press release issued on Monday following a Samoa Observer report revealing that the government had asked all four local banks for urgent assistance to approve $300,000 overdraft facilities for district councils.
“District Councils are separate legal entities responsible for the management of their own affairs and financial arrangements,” the statement said.
It said any decision to approve an overdraft facility, including the terms of the facility, was a matter for the relevant bank and the applicant District Council.
“Any decision by a District Council to apply for an overdraft facility is a matter for that District Council and its banking institution. The assessment, approval, and terms of any such facility remain matters for the relevant bank and the applicant District Council.”