Governor Lemanu Peleti Mauga has told the U.S. Government Accountability Office (GAO) that his administration is keenly aware of the challenges it faces as a local government and territory. He says his administration is seeking solutions in a fiscally responsible manner to meet challenges head on for the good of the people.
He was responding to the GAO report which said that American Samoa’s total debt increased from 19 to 37 percent of its gross domestic product.
Governor Lemanu said the first priority for the administration upon taking office was to bring stranded residents home in a safe manner while protecting the territory from COVID-19.
He noted that while the territory’s economy has benefitted from stimulus funds and COVID monies, Starkist was facing challenges with its workforce and the government is hoping to alleviate this through the guest worker program.
Lemanu informed the GAO of external factors which impact the costs of tuna production in the territory and erode the competitiveness of locally made tuna. Factors include the minimum wage increase, expiration of the federal 30A tax credit and federal oversight of US fishing waters.
The governor said the American Rescue Plan Act (ARPA) provides once in a lifetime funding to enable American Samoa to significantly improve healthcare services and upgrade infrastructure that supports education, the economy, healthcare and transportation.
In this regard, he mentioned that American Samoa is mobilizing its ARPA implementation plan for “compliance and accountability as set by federal partners.”
Lemanu mentioned that the Army Corps of Engineers was helping with planning for a new hospital to serve not only the people of American Samoa but the Pacific. He added that the US Congress is being asked to find additional means to support our plan to develop a world class health care system in the heart of the Pacific.
Regarding the bonds and the debts incurred, the governor said the American Samoa Economic Development Authority has met its mandate to ensure 100% compliance of bond agreements with investors.
He said, “As noted in our FY2020 audit, the reduction of findings reflects sound financial management, the positive fund balance has steadily improved over the years and we now stand at an $18.1 million fund balance. Increased general fund revenues from $87.6 million in 2019 to $97.5 million in 2020, an improvement of over 11.3%.”
Lemanu added that despite the border closure, commerce imports and exports are robust and have increased revenue collections.
He also informed the GAO that as part of fiscal control measures that his administration instituted upon attaining office, was a freeze and rollback to ensure proper obligations of the government were reviewed and properly corrected through established legal procedures.
Lemanu said, “We confronted a deadly pandemic, a drug and suicide epidemic, growing threat of climate change and fiscal uncertainty.”
He highlighted the credit rating by Moody’s which changed from negative to a stable position as a result of “improving financial position resulting from governance improvements including enhanced transparency and disclosure and budget management.”
He commented, “Ensuring our debt is managed appropriately will allow for proactive plans to combat the impacts of climate change, allow for improved healthcare, continued development of our growing and educated workforce and expansion and diversification of our economic development engine, the fastest and only fiber network in the region.”
