Bill Limits ASTCA Debts to 50% of Assets

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The administration bill to establish the American Samoa Telecommunications Corporation Authority, ASTCAM by law allows the government phone company to incur debts for capital improvements but ASTCA it cannot borrow more than 50% of the its equity unless approved by the Legislature.

Testifying on the bill at a House hearing yesterday were Attorney General Mitize Jessop Taase and ASTCA CEO Fala Sualevai.

Tuala-uta Representative Larry Sanitoa observed that the book value of ASTCA in FY2012 was $33 million but according to the authority’s FY2019 audit report the net value of ASTCA was down to $6.1 million. Total debts for ASTCA was $47 million.

Sanitoa said going by the proposed bill, the authority would only be able to borrow $3 million.

He asked ASTCA CEO Sualevai how ASTCA hoped to reduce its debt to 50% of its value,

Sualevai responded that ASTCA needed to borrow to make infrastructure improvements to bring its services up to par.

She said these investments are beginning to pay off.

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