The government has admitted in parliament that the $150 back-to-school grant was used as a quick way to move remaining district funds before the end of the financial year.

During the parliamentary budget debate on Tuesday afternoon, the Minister of Women, Moefaauouo Julius Tafunai, said the District Council, or Fono Fa’avae, is a non-government organisation registered under the Ministry of Commerce, Industry and Labour (MCIL).

“Our Fono Fa’avae is an NGO,” Moefaauouo said. However, explanations given in Parliament appeared to contradict that position.

Prime Minister Laaulialemalietoa Leuatea Schmidt said the government had the authority over the project and controlled the flow of the funding.

“The government is the one that owns the project. If there is anyone who has a strong voice amongst the villages and districts, it is the government,” he said. However, earlier this month, the government had sought to separate itself from the financial affairs of district councils after a Samoa Observer report revealed that the government had asked all four local banks for urgent assistance to approve $300,000 overdraft facilities for district councils.