While the administration says it has maintained a positive financial position in the last several years, culminating in a positive fund balance of almost $4 million for Fiscal Year 2018, a member of the House of Representatives has revealed that ASG owes LBJ Hospital over $13 million in 2% wage taxes that was earmarked by law for the hospital.
Tuala-uta faipule Larry Sanitoa this week wrote to Legislative Financial Officer Talalemotu Mauga saying that his office recently received reports form the hospital which shows that more than $13 million in wage tax monies was not turned over ot LBJ,
Sanitoa cites the law which stipulates that 50% of accumulated proceeds from the wage tax shall be transferred to the LBJ Hospital operation.
In addition, fifty percent (50%) of accumulated proceeds shall be transferred to a separate special account of the American Samoa Medical Center no later than the 5th day of each month, to support the Off-Island Medical Referral Program.
The lawmaker has asked the LFO to obtain copies of the 2% wage tax reports collected by Treasury for fiscal years 2016, 2017 and 2018,
He’s also seeking reports from LBJ Hospital on the 2% wage tax monies it actually received from ASG as well as the hospital’s audit reports for the three fiscal years.
