The Commissioner of the Office of Financial Institutions (OFI), John Marsh, says OFI served the CEO of the Territorial Bank of American Samoa a complaint regarding the failure of TBAS to file an audit of fiscal year 2022 on time.
Marsh was responding to KHJ News questions as to what action OFI, as the regulatory agency for the bank, is taking on the failure of TBAS to file its audit within the deadline.
This failure was reported in the American Samoa Economic Development Authority’s disclosure report to investors on the general revenue and refunding bonds.
“TBAS has informed the American Samoa Economic Development Authority that it will not have its FY2022 (audit) complete on time nor have given a time frame for it to be complete,” said ASEDA.
In a statement, Marsh said that TBAS CEO Dave Buehler “will have the opportunity to address our concerns at a hearing that has not yet been scheduled.”
Adding, “I would stress that our complaint does not raise any concerns about the safety of deposits held at TBAS. The complaint is in keeping of the normal oversight activities that OFI and the Federal Reserve Bank of San Francisco regularly conduct to ensure that TBAS is operating in a safe an sound manner.”
In the meantime, KHJ News has been informed of a recommendation to remove Mr. Buehler as head of TBAS. It’s understood that the recommendation was made to the TBAS Board.
KHJ News asked the Chairman of the TBAS Board, Senator Togiola Tulafono, if this is true. But our email mistakenly referred to the ASEDA Board instead of the TBAS Board.
Togiola replied, “I am not a member of the ASEDA Board so I am not privy to any communication between them and the Governor. As an observer, I would guess that there cannot be any truth at all to such a rumor.”
The late filing of the TBAS audit means ASG cannot submit a complete audit to the bond investors as required by the bond covenant. This could trigger the bond being called, a higher interest rate being charge or a downgrade of ASG’s credit rating.
KHJ News sought comments from the ASEDA Board. A statement from ASEDA said, “The American Samoa Economic Development Authority (ASEDA) is the government’ s bond issuance arm. Part of ASEDA’s requirements with investors of its bonds is to provide quarterly and annual disclosure for the investment community. As part of the FY2022 annual disclosure, ASEDA informed investors that the Territorial Bank of American Samoa (TBAS) failed to provide audited FY2022 financial statements on time.
“Inquiries regarding the reason for TBAS being late should be directed to TBAS officers and board members.”
According to the TBAS statute, the audited financial report is due 4 months after the end of the fiscal year.
