The American Samoa Power Authority has debts of about $14 million and its not able to pay vendors and contractors.
ASPA’s Chief Executive Utu Abe Malae informed the Governor and cabinet this is the reason employees, but when he returned in 2013, ASPA had a workforce of over 400 and the salaries were higher than before.
Speaking at Friday’s cabinet meeting, Utu was apologetic about ASPA’s predicament.
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And with the pending shutdown of canning operations at Samoa Tuna Processors (STP) in a week’s time, ASPA estimates it will lose about $150,000 in revenues.
Utu told KHJ News last week that’s how much it needs to shave from payroll each month.
ASPA’s inability to pay its debts to vendors has resulted in delays in the shipment of supplies to prepare for the cyclone season now underway.
Utu also pointed to internal problems with ASPA’s accounting and management of grant reimbursements.
The executive director said he thought ASPA owed about $8-9.5 million until receipts were retrieved from desks and some from ASPA vehicles including unpaid invoices owed to vendors and contractors from 2012, and 2013 which totaled $14 million.
He said that ASPA has been able to pay about $5 million bringing down receivables to $8 million but they are still way behind.
