The purchase of a $10 million scanner for customs has reportedly been put on hold by Governor Lolo Moliga.
This is according to testimony by Acting Treasurer Tina Vaa before the Senate Budget and Appropriations Committee this morning.
Vaa says the governor has stopped the purchase due to concerns raised by Senators over spending such a large amount of money on this equipment.
She explained that the governor wants more discussion, taking into account the issues that have been brought up by senators.
And it’s his desire that whatever decision senators arrive at regarding the scanner, he will honor that.
Vaa, along with the Secretary of the American Samoa Economic Development Authority Board Steve Watson and Chief of Customs Moetulu’I Spili Fuiava were testifying at a hearing on the scanner purchase.
This is one of the projects to be funded with bond sale proceeds.
Vaa said acquiring this equipment is not a done deal and the governor is heeding concerns raised by the Senate about this purchase.
Play Audio
All along, testimony by ASEDA Board members gave the impression that only one scanner will be purchased.
However Moetului explained at the hearing that there will be six different scanners.
The scanners will cost $6 million, while $4 million will be set aside for maintenance.
The customs chief elaborated at length on why the scanners are needed and promised that revenue collections will go up with the use of the equipment.
He said an additional $1-$1.5 million will be added to excise tax collections just from the container inspection fees that will be charged to businesses.
Only one company, Rapiscan, represented by Medpharm, the same company that provides X-ray machines for the LBJ Hospital, submitted a bid to supply the scanners.
Committee Chairman Laolagi Vaeao said it doesn’t sit well with him that a $10 million contract attracted only one company.
He said maybe the bid notice was worded in such a way that only one company was interested.
The witnesses also explained that border security, through the detection and interception of weapons and drugs would be enhanced with the use of the scanners.
Senator Tuaolo insisted that border security is the responsibility of the Department of Homeland Security and ASEDA should have requested funding for this equipment from homeland security.
Moetului said that this was explored but Homeland Security did not have the required amount of money for this purchase.
Tuaolo said they should have gone further and talked to higher authority to pursue Homeland Security funding.
He and senators Tuiasina, and Fuiava Avaloa said t$10 million is just too much money to spend on this equipment when there are other urgent needs, for example funding for the hospital and schools.
There were also doubtful that customs would raise much more than what it is now from excise taxes with the use of the scanners.
Other concerns raised by Senator Laolagi was that businesses will have to pay freight for their containers, excise taxes, hauling costs and an additional $150 per container for the use of the scanner.
He said importers will just pass on this additional cost to consumers and the cost of goods will increase.
Laolagi said at the end of the hearing that he was thankful that the governor has heard the concerns and pleas of Senators and has put this purchase on hold.
