Senators kill Retirement Fund bill in 3rd reading

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The administration bill to hike the cap on Retirement Fund investment in the territory has been rejected in final reading by the Senate.

Sen Tilo

Yesterday the bill cleared second reading by a vote of  9-4 but today three of the senators who voted for the bill cast no ballots.

Ten votes were needed for passage of the legislation but only 8 senators voted to approve it while six cast no ballots.

Senators who supported the bill were Tilo Vasaga, Tuaolo Manaia Fruean, Levu Solaita. Alo Faauuga, Tuiagamoa Tavai, Faiivae Alex Godinet, Misaalefua Hudson and Taua’a Sam Vaouli.

Taua’a had voted no yesterday.

The nay votes came from Senators Faamausili Mau Mau Jr , Muagututia Tauoa, Satele Galu Satele,  who voted for Magalei Logovii, Fonoti Tafaifa and Sauitufuga P. Suiaunoa.

The bill would have hiked the cap on the ceiling for local investment by the Retirement Fund from 17% to 35% paving the way for the Fund to grant an $18.2 million loan to the American Samoa Telecommunications Authority to pay the Hawaiki Cable.

The $18.2 million is included in ASTCA’s proposed FY2019 budget.

During a Senate hearing on the bill yesterday, Senator Magalei Logovii raised questions regarding a sunset provision in the law authorizing the Retirement Fund to loan $20 million to ASG in 2008.

The provision states that after the loan is paid off the cap on local investment by the Retirement Fund reverts to 10%.

But Attorney General Talauega Eleasalo Alo said this language is not in the law.