The American Samoa Telecommunications Authority has made a second loan request to the American Samoa Government Employees Retirement Fund.
This has been confirmed by the Retirement Fund Board Chairman Vaanatiu Tofala Iafeta who said that ASTCA is requesting a loan of $4 million.
He says ASTCA needs the money to help fund the new undersea fiber optic that the government’s telecom agency has signed up for, the Hawaiki Submarine Cable.
This cable, due to go live in June 2018, is touted as the fastest and largest link between the U.S. and Australia and New Zealand, and connecting islands across the Pacific region.
Last year, the Retirement Fund board approved a loan of $4.7 million for ASTCA which was supposed to be ASTCA’s seed money for the Hawaiki Submarine Cable.
ASTCA board members testified at Fono hearings that they were also seeking a loan from the United States Department of Agriculture Rural Utilities Service and the intention was to repay the Retirement Fund loan as soon as the RUS loan came through.
The status of the RUS loan is not known .
Vaanatiu says the Retirement Fund board needs to conduct a due diligence review of the ASTCA request and they have asked the agency to provide additional information to help in its consideration.
KHJ News understands that another semi independent government agency, the Shipyard Services Authority is also submitting a loan request to the Retirement Fund.
However the CEO of the Shipyard Services Authority, Moefaauo Bill Emmsley, disputed this.
He said they have not submitted any formal request.
According to Moefaauo, they are exploring various options for funding, and financing from the Retirement Fund has been discussed informally but there has not been a formal request.
He said, “We are looking at several avenues, including the Retirement Fund but no decision has been made.”
“We may not even get to that point.”
Meanwhile, Retirement Fund Board Chairman, Vaanatiu, says the Board has scheduled and will be publicizing a first meeting of members of the Retirement Fund, a standing request of retirees and government employees worried about their pension fund being used as a loan agency.
Vaanatiu says the meeting of members is set for March 10.
In the meantime, the Board is getting ready to host lawmakers and government leaders in Honolulu for the orientation of House and Senate Retirement Fund Committee members and for the Fund advisers to give reports of investments and the financial health of the Fund.
