Faoa explains why he stepped down

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The former attorney for the American Samoa Government Employee Retirement Fund says he had to remind  members of the Board of Trustees about their fiduciary duty to protect the interests of members of the Fund.

Speaking with KHJ News and Samoa News this morning, Faoa Aitofele Sunia, said during board discussion of the use of Retirement Fund money to purchase American Samoa Economic development Authority bonds, an argument cited to support the move, was that the money raised would be used on projects that would benefit the public.

Faoa, who is running for governor with Lt. Governor-candidate Representative Larry Sanitoa, Monday handed in his resignation as the Retirement Fund attorney,

He cites in his letter that he had advised against the Retirement Fund buying ASEDA bonds and terminating the lease for Bank of Hawaii at the Centennial Building.

Faoa said his advice was discounted on both these initiatives and he felt it was best that he resign.

He said today he anticipates the debt from the ASEDA bond purchase would become a contentious issue in the gubernatorial campaign.

Faoa told the media the Trustees are appointed to look after the interest of members but during discussion of the ASEDA bonds, board members supported the move because they said  it was for the public’s benefit.
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Faoa explained that the way the bond purchase by the Retirement Fund was structured, ASG’s American Samoa Government Employee Retirement Fund remaining loans were paid off and a portion of the money went to purchase ASEDA bonds which the government will repay quarterly.

He said in reality, the government debt with the Retirement Fund still exists , its tied up in the bond certificates in the name of the Retirement Fund.

ASG was also paying 8% interest on its loans with the Retirement Fund and the Fund was getting that monthly payment over the few years remaining on the loan term.

In comparison he said the ASEDA bond would earn an interest of 7.5%  and the payments are quarterly.

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