Bill to Forgive $5 Million Loan for LBJ Clears Senate

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The Senate Budget and Appropriations Committee yesterday reported to the full Senate a recommendation to approve a bill which removes a credit facility under which ASG gave the LBJ Hospital $5 million in 2003.

The money was from Hurricane Val Insurance proceeds.

The Committee didn’t call any witnesses but discussed the bill at a meeting before yesterday’s Senate session.

Chairman Laolagi Vaeao said committee members unanimously agreed to pass the bill which was like a housekeeping measure in that it removes language in the law books which require that LBJ Hospital repay the $5 million loan.

Deputy Treasurer Tina Vaa informed a Senate hearing earlier this month that auditors had recommended legislation to remove this debt so that it doesn’t appear on ASG’s books during the yearly audits.

Senators approved the bill in second reading yesterday and should clear it in final reading today, before sending it to the House for review.

The calendar for both chambers for the rest of this week are empty, save for daily hearings in the House for the rest of this week.

There were expectations that the governor would submit nominees for the Board of Directors for the Territorial Bank of American Samoa before the Fono recesses after Friday’s session.

That hasn’t happened.

KHJ News knows of three individuals whom Governor Lolo asked to serve on the board, who respectfully declined.

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