The Development Bank of American Samoa (DBAS) is working with its legal counsel to recover $250,000 that it disbursed to Tausani Airlines to purchase two planes that were to provide transportation for Manu’a.
That’s according to testimony by DBAS President Ruth Matagu Fa’atili before the Senate Transportation, Port and Airport Committee.
She was to explain what’s happened to a loan that DBAS approved for Tausani Airlines to buy planes that were never delivered.
Another witness at the hearing was Tausani Airline President Filifa’atali Mike Fuiava.
Bank President Matagi-Faatili explained that the airline had applied for a loan of $400,000 to purchase two aircraft from Guam.
The DBAS Board approved the total loan of $400,000, according to Tausani President Filifa’atali …$300,000 from DBAS and the balance from funding via the the Department of Commerce.
Filifaatali said while the loan was approved in October 2015, the first check was not issued until December of the same year , and it was only for $50,000.
Senate President Gaoteote Palaie Togafau questioned the DBAS President why
But one of the reasons for issuing just $50,000 was because they learned the Guan company from which the planes were to be purchased was in bankruptcy.
The bank President also clarified that the total loan amount approved for Tausani was $250,000 , not $400,000
The Senate President wanted to get to DBAS plan for recovering the loan amoun,
He said he’s not point fingers at either DBAS nor the Tausani Airline because a plane cannot be bought with just $50,000.
Faatiliga in reply to a question fro Senator Tuiagamoa T. Tavai’s said Tausani’s DBAS was to fund 100% of the airline operation.
This was the first time that the airline president has revealed this information.
Our stories quoting him from the time the loan was granted said that the money was to purchase the planes.
Senator Alo Fa’au’uga commented that this is news to some of them.
President Pro Tempore, Senator Nuanuaolefeagaiga Saoluaga Nua, Chairman of the DBAS Board suggested that the committee stop deliberations on the matter and refer it back to DBAS and Tausani Airlines to iron it out.
Earlier this year the DBAS Chairman told KHJ News that the bank is awaiting certification for the Tausani Airlines from the Federal Aviation Administration (FAA) before it can start operations.
He also told KHJ News that less than $300,000 of the original proposed amount has been disbursed to the airline.
DBAS President, Faatili said some of the $250,000 has been recovered but not much.
She said they are working with the DBAS attorney to recover the full amount.
