Econ Development Authority reports how the 2018 bonds will be spent

Pago Pago, AMERICAN SAMOA — Of the $50.32 million that the government received through the sale of the 2018 bond series issued by the American Samoa Economic Development Authority (ASEDA), construction of the proposed new two-story Fono building is allocated over $15 million, according to an ASEDA report.

The report, recently received by Samoa News, says a “portion of the proceeds from the 2018 bonds will be used to finance all or portion of the cost of acquisition and construction of a variety of capital improvement projects” in the territory.

The projects include but are not limited to:

•    Fono Building Project — “Approximately $15 million of the Series 2018 Bonds will be used to complete the Fono complex”, which will be the centerpiece of Pago Pago wharf and downtown area; and

•    Telecommunication Project — the American Samoa Telecommunications Authority (ASTCA) entered into a Supply and Installation Agreement with the Hawaiki Cable Limited Partnership to purchase assets to link the territory with Hawaiki and purchase 200-Gigabytes of capacity on that line.  A portion of the proceeds from the Series 2018 bonds “will be used to contribute to the final payments to be made by ASTCA for Hawaiki Cable and provide funds for additional telecommunication within the territory.”

Under the “estimated sources and uses of funds” section of the report, $15.36  million is allocated for the new Fono building; over $28.33 million for telecommunications; $4.68 million for the Debt Service Reserve Account; and over $1.48 million for cost of issuance.

The 2018 bond series continues to be an issue raised by some senators; and yesterday during the House session it was raised by Rep. Larry S. Sanitoa, who had called for a committee hearing.

The Tualauta faipule told Samoa News after the session that he had informed his colleagues of how the proceeds of the bonds will be used.

"Add the new bond to the existing bonds, and the total will be $231,782,735 million in total principal plus interest for the next 20 years," he said.

In his opinion, Sanitoa said issuing the 2018 bond without Fono hearings and approval was “unconstitutional and against the law”.

He told his colleagues that four years ago the debt service for the government was only $2 million and with this new bond, “our new debt service will be around $12 million."

He requested a hearing of the House Commerce and Economic Development Committee regarding the new bond; and also requested a hearing with ASTCA leaders, on the money for the Hawaiki cable.

In response, House Speaker Savali Talavou Ale asked that the appropriate House committees look at holding hearings on the new bond and the Hawaiki investment.

Senators were hoping for a hearing early this week on the bonds, along with ASG’s reported $3.9 million "in the black" for 2018, but it was canceled after Gov. Lolo Matalasi Moliga informed Fono leaders last week that ASG Treasurer, Uelinitone Tonumaipe’a, who is also the ASEDA board chair, and ASG Budget director Catherine A. Saelua would not be available as they are working with off-island auditors.

Some senators however, still want a hearing on the bond this month.