While the Fono is in recess now, some lawmakers are using the opportunity to seek information regarding bond funded projects.
Based on the law which established the Territorial Bank of American Samoa, Tuala-uta faipule Larry Sanitoa has asked the Legislative Financial Officer Talalemotu Mauga to provide the FY 2016, 2017 and 2018 Audited Financial and Profit and Loss Statements for TBAS.
The lawmaker reminded that TBAS was funded with $15 million from the 2016 Series B Bonds in the amount of $15 million.
Of that amount, $5 million was to start up the banking operation and establish the Office of Financial Institution. The remaining $10 Million was for the initial capital for TBAS.
Sanitoa said the recent balance sheet reports from TBAS as of October 2018 reveal an alarming and disturbing trend on the Profit and Loss Statement.
“TBAS has an accumulative loss of $3,705,874 since its inception from October 2016 through September 30, 2018. Currently, TBAS has projected or budgeted a monthly loss of $178,000 with a total loss of $2.1 Million at the end of the fiscal year.”
Sanitoa references the law which established TBAS in his request.
“The Bank shall prepare and file annually with the Governor, the Legislature of American Samoa, and the Office of Financial Institutions, within 120 days after close of its fiscal year, a report of its condition sworn to by the CEO and the Chairman of the Board. This includes the Audited Financial and Profit and Loss Statement of the bank.”
The law also provides that this report shall also be made available to the general public by publication or otherwise.
In addition, “The Bank shall prepare and file quarterly with the Office of Financial Institutions, within 30 days of the end of each calendar quarter, a report substantially in the form of the Consolidated Report of Condition and Income as required by the Federal Financial Institutions Examinations Council”.
Sanitoa told the LFO that in order for he and his colleagues to fully understand the financial condition of TBAS, to please obtain the FY 2016, 2017 and 2018 Audited Financial and Profit and Loss Statement for the bank.
