The Community Bank of American Samoa, the group of local and off-island investors who have been trying to set up a private bank in the territory, is reported to have made an offer to buy the Territorial Bank of American Samoa.
This was revealed by Senate President Tuaolo Manaia Fruean during Monday’s Senate session.
Tuaolo, who is chairman of the Retirement Fund Board of Trustees, said that their Board has received a proposal from the Community Bank to buy TBAS.
Tuaolo asked Senator Togiola for a status report on TBAS and, specifically, the bank president and CEO “whom Governor Lemanu Peleti Mauga asked the Board to remove but Togiola is objecting to.”
The TBAS Board Chairman said TBAS was doing well, it had recorded a surplus for the past two years, had weathered problems in 2019 and 2020 but had successfully met the banking needs of residents after the closure of ANZ.
And this success was achieved even though TBAS is not FDIC insured.
Togiola conceded that the bank faced problems under previous management where loans were made to off-island customers who did not repay their loans. But he assured that TBAS is doing well and is meeting the needs of residents. He said TBAS successfully handled the influx of customers after the closure of ANZ.
Pressed by the Senate President as to why the Board has not removed the CEO/President as the Governor had recommended, Togiola said the board acted in accordance with the law. He said the board operates independently to protect the interest of bank customers.
“But who appoints the board?” Tuaolo asked.
Togiola said it was the Governor with approval of the Senate.
He stated the law spells out the duties and functions of the board and after the Governor appoints and the Senate confirms board members, they follow the law.
He believed that the TBAS board is carrying out its fiduciary duty and the dictates of the law.
