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Fono requests accounting for $1MIL allotted to DBAS

Committees in both the Senate and House have made separate requests for the financial spending report of the $1 million allocated in fiscal year 2014 for the Development Bank of American Samoa (DBAS) meant to boost economic development for local small businesses.

 

The funding, which comes under Special Programs, was requested by Gov. Lolo Matalasi Moliga under the FY 2014 budget. The governor said in his request that the current restrictive lending policies of the commercial banks have limited the ability of local people to participate in their own economic development.

 

He explained that the $1 million in earmarked funds is to stimulate economic activity in the private sector by making venture capital finance loans available through DBAS, and this would increase DBAS capacity to issue loans to locally owned businesses.

 

SENATE COMMITTEE

 

The Senate Government Operations Committee chair, Sen. Galeai M. Tu’ufuli, held a closed-door meeting Monday morning with DBAS board chairman Sen. Nuanuaolefeagaiga Saolua, vice chair Gi Malala and DBAS president Ruth Matagi-Fa’atili to discuss how the bank has spent the $1 million allocation.

 

Galeai said yesterday that there were several issues on which the committee wanted additional information, and therefore requested a financial spending report.

 

“We’ve asked for a report on the disbursement of the $1 million approved by the Fono in support of the administration’s goal to boost small business development in the territory,” he told Samoa News. “These are tax payer dollars and we — as lawmakers — have the responsibility to look after this money to make sure it was spent accordingly.”

 

Galeai is hopeful that DBAS will submit a complete financial report as soon as possible so that it will be available for committee review and will then work on holding a committee hearing — open to the public — when the Fono reconvenes next week Monday.

 

HOUSE COMMITTEE

 

On Tuesday this week, House Commerce Committee chairman Rep. Larry Sanitoa sent a letter to DBAS president saying that the Fono in the FY 2014 budget supported the administration’s request of $1 million for DBAS to promote economic development by offering loans to local businesses.

 

He wrote that recent financial reports from ASG for FY 2014, have confirmed that a little over a million dollars was expended for DBAS under Special Programs, and to get a better understanding on how these funds were administered in support of economic development, Sanitoa made a request for financial reports in accordance with local law.

 

Local law calls for DBAS to prepare and submit annually to the governor and the Fono — within 90 days after the close of its fiscal year — a report with a profit and loss statement of the last fiscal year and a statement of its assets and liabilities as of the close of the year.

 

Additionally, the report must be made available to the public, according to the law.

 

Sanitoa is also requesting a copy of the DBAS FY 2014 audit report, if it’s available as well as the latest financial details of the $1 million allocated for economic development.

 

Sanitoa says the requested financial reports will be reviewed by his committee on Mar. 23.