Governor Asks, Senate Obliges, Bill Passes

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There was a rushed Senate hearing yesterday on an administration bill leftover from the last session dealing with repayment of the American Samoa Economic Development Authority bonds.

During the Senate session, Senate President Gaoteote Palaie informed senators that he and the Speaker met the day before with  Governor Lolo who requested that the Senate act on the bill because today is a deadline that ASEDA needed to meet which required passage of this bill.

Gaoteote asked that the session be adjourned temporarily while members of the ASEDA board, already seated in the Senate gallery, appear to testify on the bill.

And that’s the way it was.

Vice chairman of the ASEDA Board Utu Abe Malae, Secretary Steve Watson and members Attorney General Talauega Eleasalo Ale, Keniseli Lafaele and Iulogologo Joseph Pereira took their seats and the hearing began with the chairman of the Senate Budget and Appropriations Committee Laolagi Vaeao moderating.

The bill amends current statute to assign excise taxes, primarily cigarette and alcohol duties, that are currently earmarked to repay ASG loans from the Retirement Fund towards repayment of the ASEDA bonds.

Also assigned for repayment of the bonds is the customs declaration fee of $5 per vessel.

Utu announced that after facing difficulty selling the Series B bond, ASEDA has found a buyer.

The bond sale would raise $23 million and aside from funding the government bank, proceeds will go towards paying court settlements and fund the Office of Financial Institution.

KHJ News reported last week on the offer from Preston Hollow of Texas, for the Series B bonds.

Combined with the A & C Series bonds that were sold last year, ASG is receiving $78 million from the bonds but will spend nearly double that amount, in repayment for the next 20 years.

Senator Magalei Logovii and Faletagoa’i Tuiolemotu raised questions about this and chairman Utu responded.

Magalei also questioned Acting Treasurer Tina Vaa whether the excise tax for beer and cigarettes factored into the FY2016 budget will be affected with the redirecting of those excise taxes for repayment of the bond.

Vaa was confident that with increases to the tax on beer and cigarettes last year, collections are sufficient to cover both.

Senator Magalei asked for reports from Treasury to confirm the excise tax collections, however Senator Galeai Tuufuli said the bill should not be held up on such a request.

He said the same reports have been furnished in the past but the senate should not drag its feet and hold up a very important development.

$2 million from the Series B bond is to go towards court settlements, but a list that was given to senators , included settlements that had already been paid, such as Marisco.

Chairman Laolagi thanked the ASEDA board for their clear and concise explanations.

His only request was that ASEDA consider funding to resolve problems at the hospital if there‘s any leftover money.

There were no questions asked about the offer for the bond that will finance the Territorial Bank of American Samoa.

During the regular session the bill for repayment of the bonds was passed.

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