The American Samoa Government Employees Retirement Fund has served notice to the American Samoa Telecommunications Authority that it has defaulted on a $4.5 million payment.
The payment was due December 8 but a December 20 letter from Vaanatiu Toafala iafeta, chairman of the Retirement Fund to Senator Faiivae Ales Godinet, Chairman of the ASTCA Board , as of the close of business on December 8 the payment had not been received.
Vaanatiu advised that his letter shall serve as written notice of default of the December 2017 agreement between the retirement fund and ASTCA .
And further if the default remains uncured the Retirement Fund shall proceed to manage, monetize, operate or dispose of the Retirement Fund’s rights and interest granted to the Retirement Fund under the December 2017 agreement .
Under that agreement the Retirement Fund granted ASTCA a total of $17 million representing an investment by the Fund in the Hawaiki Cable compenents in American Samoa, which would essentially be held or owned by the Fund. Then the Retirement Fund would lease back the Hawaiki Cable to ASTCA.
ASTCA is to make annual lease payments of $4.5 million on December 8 for four years beginning this December and ending in 2021 plus payments of $3.3 ,million in the fifth year until the full amount is repaid with 10% interest.
The notice of default from the Retirement Fund to the ASTCA Board Chairman was copied to the new CEO of ASTCA Lewis Wolman and the Executive Director of the Retirement Fund Iaulualo Talia Faafetai
