Senate President Pro Temp and Manu’a Senator Laolagi Savali Vaeao said he is “surprised that Mr. Sanitoa, a member of the House of Representatives continues to question the legality of the new government owned bank.”
The senator issued a personal press release to KHJ News and Samoa News today in response to Sanitoa’s comments. .
Speaking on their weekly radio talk show, Rep. Sanitoa, the lt. governor running mate for Faoa Aitofele Sunia, had questioned the legality of the Territorial Bank of American Samoa and expressed concern that the government bank will not be under the oversight of the Federal Deposit Insurance Corporation.
Laolagi declared the government bank is a legal entity without the FDIC.
Laolagi pointed out that the Fono has held numerous hearings with members of the American Samoa Economic Development Board and administration officials regarding the bank.
He confirmed that one of the questions was if the bank was FDIC insured and the answer was no but those in charge are working towards making TBAS FDIC compliant.
Laolagi also pointed out that enabling legislation has been passed followed by the establishment of the Office of Financial Institutions (OFI) by law to be overseen by a Commissioner who has been confirmed by the Fono.
OFI is to regulate TBAS and other banks, as well as money transfer businesses in the territory.
Laolagi explained that at the outset, people of the territory should give praise and thanks to Governor Lolo for his foresight in developing this economic development initiative.
He said it’s uncommon for locally chartered financial institutions to be established but the model used in setting up TBAS was a common practice for communities in the US during the 60s and 70s.
He pointed to the government of North Dakota as an example and said that’s the model the administration is following for establishment of the TBAS.
Lalolagi said in the release that the establishment of the government bank was not in Governor Lolo’s political platform in the 2012 election but it was prompted by the the Bank of Hawai’i leaving the island after many years of service.
As a Senator representing the people of Manu’a, Laolagi said he fully supported legislation to authorize the establishment of the chartered financial institution.
He supports the government’s efforts as he continues to hear the loud outcry of the residents particularly the people of his district of Manu’a about the inconsistency and/or the lack of banking services from the only fully operating bank in the territory, ANZ Bank.
Laolagi pointed out that ANZ has changed most of its underwriting and credit policies and the local community who banks there are suffering the consequences.
He said his support is “not for any political motivation, but based on people’s needs.”
