While trying to stay optimistic about the government’s plan to set up a charter bank, some lawmakers are not totally sold on the idea while others are even nervous about the new development.
During a confirmation hearing of members of the Board of Directors for the new bank, conducted by the House Commerce and Economic Development Committee, Leasina and Aitulagi faipule Atalina Asifoa expressed her concern and posed the question of how this new bank will be different from existing banks including the American Samoa Development Bank.
Utu Abe Malae, who was among four of the 7 members of the board attending the hearing this morning said that they have come across this question during the planning process of the charter bank.
A former DBAS President, Utu said with the two local banks including Amerika Samoa Bank back in the 60’s and the current DBAS, problems stem from a lack of oversight.
He pointed out that within the new Territorial Bank Of American Samoa there are two critical and important functions:
* the Office of Financial Institutions which serves as a bank detective and will be conducting surprise auditing and
* Tax Compliance and Enforcement.
These are the two functions that previous banks and DBAS do not have.
Utu explained that the charter bank is a commercial bank, it will be more customer service oriented.
He said there’s a need to improve bank customer service,noting the many complaints from customers of the two commercial banks, and he believes TBAS would offer good service.
Utu also noted that TBAS has no off-island shareholders demanding huge returns for their investments.
Businessman and former Senator AloDr. P. Stevenson told Representatives that the bank will be locally owned which translates to money staying in circulation within the local economy.
He compared this to ANZ that makes profits in American Samoa to be sent to Guam.
Alo said this bank is going to exist to :develop our people, our villagez, our community and our government” and that is the only reason why he supported the Governor’s plan for the setting up of this charter bank.”
The four who appeared before the Fono this morning for their confirmation include, former ANZ Manager, Salaia Gabbard, businessman Papali’I Lauli’I Alofa, Utu Abe Malae, and Alo Paul Stevenson.
Missing at today’s confirmation hearing were DBAS President, Ruth Matagi Fa’atili and DOC Director Keniseli Lafaele who is returning tonight as well as Steven H. Watson, Legal Counsel to Governor Lolo.
Committee Chairman, Rep. Larry Sanitoa decided to wait until they have been questioned before holding a vote for all 7 directors of the government bank,
