Samoan Authorities Crack Down on Foreigners Exploiting Reserved Business Sectors

Samoan authorities, led by the Ministry of Commerce Industry and Labour (M.C.I.L.) CEO Pulotu Lyndon Chu Ling, have issued a stern warning to non-citizens and businesses operating in sectors reserved exclusively for Samoan citizens. This warning comes amid increasing reports of foreigners exploiting legal loopholes and engaging in corrupt practices to infiltrate these protected markets.

The enforcement is rooted in Section 14 of the Foreign Investment Act 2000, which explicitly prohibits non-citizens or companies with foreign shareholding from engaging in or being employed in businesses listed on the Prohibited or Reserved Lists. These lists include sectors such as bus transport services, taxi transport services, rental vehicles, retailing of food and drink items, sawmilling, and traditional elei garment designing and printing using the upeti method.

Pulotu Lyndon Chu Ling emphasized the Ministry's commitment to addressing these violations, stating, "If a non-citizen is found to be involved in any of the reserved activities as outlined above, the Ministry will take appropriate action to address this issue."

The warning follows reports of foreigners circumventing the law through various means, including arranged marriages with Samoan women to gain access to the local market and running businesses under the guise of Samoan ownership. Some Samoans working in retail shops have reported that foreigners supervise them and quickly hide when authorities conduct inspections.

Why this matters:

This matter has broader significance as it affects the economic sovereignty of Samoa and its efforts to protect local industries. If left unchecked, the exploitation of reserved business sectors by foreigners could lead to the erosion of Samoa's economic independence and have long-term consequences for its citizens.

The Ministry has urged the public to report any non-citizens or businesses operating in these reserved sectors, stressing that legal action will be taken against those found in violation of the law. "The Ministry will take appropriate action to address this issue," reiterated Pulotu.

The enforcement of these regulations underscores Samoa's efforts to protect its local industries and ensure that the benefits of these sectors remain within the community. As the Ministry continues its crackdown, the focus remains on maintaining the integrity of the Samoan market and preventing exploitation by foreign entities.

Key Takeaways

• Samoan authorities warn non-citizens and businesses operating in reserved sectors.
• Foreigners exploiting loopholes and engaging in corrupt practices to infiltrate markets.
• Section 14 of Foreign Investment Act 2000 prohibits non-citizens from engaging in reserved sectors.
• Ministry to take action against violators, including arranged marriages and false ownership.
• Enforcement aims to protect Samoa's economic sovereignty and local industries.