The House of Representatives approved in final reading last week a bill which establishes the American Samoa Telecommunications Authority by statute. All 21 members of the House have signed as co-sponsors of the bill which was originally introduced by Rep. Fagaima Larry Sanitoa in March of this year.
ASTCA was created by executive order in 1998 from what was then the Office of Communications.
The bill sets out that ASTCA regulates all telecommunication services in American Samoa and is in charge of its own procurement. It may borrow money and incur indebtedness for capital improvements provided that total indebtedness shall not exceed 50% of the equity unless otherwise approved by the Fono.
ASTCA is to be governed by a seven member board, as it is now and Board members are to serve four year terms which are staggered. The directors are appointed by the Governor and confirmed by the Legislature. Currently the board members of ASTCA do not require Fono confirmation.
The bill spells out that one director shall have management experience in the telecommunications industry, one shall have at least three years experience in finance, one shall have an information technology background and four members are selected from the private sector and government service on the basis of character, competence, education, experience, and judgement.
A director can be removed from the board by the Governor only for breach of his or her fiduciary responsibilities or for just cause.
All Board members shall have their primary residence in the territory. The compensation of board members is $6000 per year while the chairman receives $7000.
Duties of the Board, include hiring and supervising an Executive Director or Chief Executive Officer who shall report directly to the Board. The Board is also to adopt, amend, and repeal bylaws, establish and promulgate rules for users of telecommunication services in the territory and review and approve rates before submitting them to the appropriate regulators body as required for final approval.
The bill provides that the Executive Director/CEO shall have a minimum of three years experience in a senior management position in the telecommunications industry and as CEO is responsible for the operation of ASTCA under the direction and control of the Board of Directors.
The Board shall establish the salary of the Executive Director/CEO. Among the duties of the CEO is to develop and submit for the Board’s approval the annual operating and construction budget for ASTCA, prepare and submit to the Board of Directors monthly operating statements, quarterly performance and financial reports and annual financial reports. The CEO is also responsible for submitting to the ASTCA Board monthly summary reports of cash receipts, receivables, payables and other pertinent financial data necessary for the proper management and monitoring of ASTCA finances.
The CEO is responsible for hiring a qualified and experienced Chief Financial Officer who shall act as the procurement officer for ASTCA. The bill establishing ASTCA by statute is now before the Senate.
