The final budget for the Lolo and Lemanu administration’s first term in office is introduced by Governor Lolo Moliga with a summary of what they have been able to pay off with the $78 million raised from the sale of American Samoa Economic Development Authority bonds, and major projects to be financed with proceeds from the bond sale.
The governor thanks the Senate President and House Speaker for their “progressive and audacious leadership” and the senators and House Representatives are acknowledged for their wisdom in passing major pieces of legislation, “designed for us to step out of the traditional status quo mode to boldly traverse unchartered waters.”
Governor Lolo writes, “We jointly decided to find alternative sources of capital financing outside of the Department of Interior annual Capital Improvement Projects appropriations, to accelerate the development of the territory.”
The alternative financing he’s referring to is ASEDA bonds which had garnered $78 million.
The governor lists long term debts which have been repaid with the bond money.
- balances of two outstanding ASG loans with the Retirement Fund.
- the Laufou Fire ruling which was negotiated down from $8 million ot $5 million by the Attorney General.
- lawsuits against the LBJ Hospital incurred during previous administrations.
- disaster settlements which compensated individuals who were injured and properties destroyed by the Fagatogo landslide of 2003.
- ASG’s accumulated debt of $8.7 million with the American Samoa Power Authority has also been wiped off and reinvested in alternative energy projects for ASPA in Manu’a.
The governor tells the Fono leaders their collective decision to pay off these debts was to allow refinancing at a lower interest rate and freeing up revenues to finance other critical projects of the government, such as upgrading and rebuilding of roads.
He said the liquidation of old debts improved the financial integrity of ASG.
Lolo seems to answer criticisms from the Faoa Sanitoa camp about the administration incurring so much debt from the bond sale.
He says the new debts allowed the administration to
- construct a brand new vessel to serve Manu’a;
- relocate the jet fuel tanks at the airport which would lead to the feds releasing $10 million for airport improvement;
- purchase scanning equipment to help stop the entry of drugs, guns and circumvention of paying excise taxes; and
- begin planning for a new Fono Building to replace the current one which is deteriorating and “posing a threat on the lives of Senators and Representatives.”
Lolo told the Senate President and House Speaker, “Our collective decision to create new debt reflects our foresight and acute recognition that if we want to secure a prosperous and a stable future for our children, we need to take bold steps in investing now in building our economy.
“Opting to maintain status quo jeopardizes the future of our children.”
