Senator Malaepule Saite Moliga is urging transparency with ASG’s financial situation as he suspects things are not as rosy as they look.
He points to the delay in Treasury turning over payroll deductions for ASG employees with loans at the development Bank of American Samoa; complaints from vendors that they have not been paid; reports that FICA payments are missing for some employees and the first quarter revenue and expenditure report; as evidence that ASG is hurting financially.
Malaepule says it’s important to get a clear picture of the government’s financial stability at this time, because when the Fono resumes in July, the Fiscal Year 2025 budget will be presented.
He pointed out that there was a $9.4 million shortfall in the first quarter of FY2024, and if that trend continues there will be a substantial deficit by the end of this fiscal year. He said it’s important to track collections, especially given that the COVID money has dried up and the budget for next year needs to reflect the downturn in COVID related activity.
He says the announced cost containment measures factors such as freezing hiring, overtime, etc. Paid with local funds will not have much impact. He believes a reduction in force should be considered.
Malaepule said, unfortunately, because it’s political campaign season, he doesn’t believe there will be much information or discussion on the government’s finances.
