The LBJ Hospital can look forward to getting a $2.97 million cash infusion from a new benefactor, the American Samoa Economic Development Authority.
The hospital funding was not on the list of uses from proceeds of the bond sale by ASEDA when enabling legislation was reviewed by the Fono.
But during discussion at hearings in both the Senate and House lawmakers advocated that some funding from the bond sale be given to the hospital which was and is still going through a serious cash
KHJ News reported last week that a new Task Force that the governor appointed to look at problems confronting the LBJ Hospital and come up with solutions, requested ASEDA for bond revenue to purchase equipment for the hospital.
Utu Abe Malae, Chairman of the LBJ Task Force and vice chairman of the ASEDA Board responding to KHJ News says the $2.9 million approved for LBJ comes from the Series A & C bonds which are assigned for infrastructure or capital type projects.
We pointed out a statement by ASEDA Secretary Steve Watson at a Senate hearing that ASEDA and its advisors had “assigned” the bond money for projects which would lead to economic development, job creation and revenue generation.
We asked Utu to explain how the funding for LBJ is justified given the priorities cited in Watson’s statement.
Utu gave this explanation: “These are capital projects or assets that provide service that is both revenue earning, loss avoiding and socially necessary.
“For example, the autoclaves allow for sterilization which is a fundamental necessity in a hospital.
“Without sterilization there is a high risk of gross infection that may result in death. In the laboratory without sterilization any microbiological test would not be possible. Thus compromising safety and result in needless death.
“Preventing death saves a lot of unnecessary expenditures for society, including the hospital, families and government.”
We asked if ASEDA is dictating to the hospital how the funds will be used.
Utu said, “No we don’t dictate we hear from agencies critical needs –needs that change over time.”
He pointed out, “some ASG gencies go directly to the governor for help and he then refers back to us, the ASEDA board with his recommendation.”
Utu said that is how the $2.97 million for LBJ was approved; the governor asked ASEDA to review the LBJ Task Force request.
As listeners would recall, after concerns were raised in the Fono about the use of $10 million in bond revenue to purchase scanners for the Customs Division of Treasury, Governor Lolo Moliga directed ASEDA to put the purchase on hold.
Utu, tells us the scanner project may be financed with a smaller amount of money “which means we can spend some on LBJ.”
He said another revenue earning project that was discussed at the ASEDA Board yesterday was repairs to the 3,000 ton slipway at the government shipyard at Satala.
Utu said there was no request for this project just an idea that was broached.
The shipyard already has Capital Improvement Project funding for the slipway repairs.
Our final question to Utu: Doesn’t he see a conflict in his dual role as chairman of the LBJ Task Force and vice chairman of the ASEDA Board.
Utu responded, “No I do not. LBJ and ASEDA serve the common good. If LBJ were my private hospital then yes, it would be a conflict of interest.”
