Governor Lolo Moliga has instructed Treasurer Ueligitone Tonumaipe’a to find money to pay ASG subsidies, the wage tax and other funds owing to the LBJ Hospital.
Sources who attended meetings last week between the Governor, the Hospital Authority Board, LBJ management and Treasury, tell KHJ News that the Chairman of the Board, Leilua Mase Akapo practically accused the Treasurer of withholding money that legally belonged to the hospital.
He also described as baloney, Tonumaipe’a claims that the LBJ owes ASG for a loan that was made in 2004 during the Togiola Faoa administration.
According to our sources, Leilua called a spade a spade and said that Treasury was breaking the law in not turning over money that belongs to the hospital and using it for other purposes.
KHJ News understands that there were two meetings held last week to try and resolve finances for LBJ.
This follows a December 28 letter from Leilua to the governor describing the grave situation that the hospital was facing due to ASG not paying the LBJ monthly subsidy of $500,000 on time, and delayed payment of the 2% wage tax and other funds meant for the hospital.
The letter said that LBJ’s account payables had reached $8 million and the Pharmacy Division had been told to curtail the purchase of medical supplies in order to meet payroll.
Last month the hospital delayed payment of employee payroll deductions for utility bills, loans and insurance payments due to a cash flow problem caused by the late subsidies.
A report that was attached to the board chairman’s letter to the governor showed that as of December 28, last year, ASG had not paid the October, November and December subsidies.
It was also short $100,000 for a subsidy payment in July of last year.
The LBJ report also showed that ASG owed the hospital, proceeds of the 2% wage tax in the amount of $4.4 million from 2012 to 2015.
According to an LBJ official, ASG has been paying wage taxes for ASG employees but not private sector workers.
Another ASG debt that was listed in the report was $158,918 for medical bills of inmates and detainees at the Territorial Correctional Facility, ASG workers compensation and an item listed as ASG, possibly bills for contract employees.
The arrears for the TCF was $86,276, and $65,000 for Workers compensation.
The hospital also owed for autopsies performed by LBJ at the government’s request.
According to the report, the unpaid bill for autopsies totaled $136,320 from 2012 up to December 28, 2015.
When all is added up the total sum of ASG’s IOU to the LBJ Hospital according to the report was $5.7 million.
Our sources say Governor Lolo told the treasurer at the last meeting concerning LBJ finances to find the money to pay the hospital.
KHJ News understands ASG has now paid $1.6 million.
