Pago Pago, AMERICAN SAMOA — To ensure that the Legislature reviews and gives final approval on the spending of proceeds of future bond sales by the American Samoa Economic Development Authority (ASEDA), the Senate has moved to amend local law, giving the Fono such authority.

The bill, sponsored by Senate President Gaoteote Tofau Palaie, would address Senate concerns raised early this year after the ASEDA board sold the 2018 bond series and allocated $50.32 million in bond proceeds for ASG projects.

Lawmakers — in both the Senate and House — had argued that the Fono should get a final say and endorsement on the spending and allocation of bond proceeds. However, the government, through ASEDA, disagreed.

During the Senate Budget and Appropriations Committee hearing this week Wednesday on the Senate bill, committee chairman, Sen. Magalei Logovi’i reminded his colleagues of an Administration bill pending in the Senate, seeking to re-allocate a certain percentage of current ASG revenues to pay the 2018 bond series.

The Senate earlier this year in March requested for the Administration to first provide proposed legislation to appropriate and approve spending of the 2018 bond proceeds. (Samoa News understands that the Administration is yet to provide a proposal as requested by the Senate. See Samoa News Mar. 22 edition for details, which includes a break-down on the allocation of the $50.32 million from the 2018 bond series.)

Magalei explained that this new Senate bill will address concerns raised by the Senate, whereby ASEDA will first seek Fono approval in appropriating and spending future bond sale proceeds.

In March this year, ASEDA board vice chairman Attorney General Talauega Eleasalo Ale told senators that the sale of the 2018 bond series — and its allocation by ASEDA — is allowed under the law, which was amended before the sale of the 2015 bond series. And that the 2018 bond series didn’t require Fono approval as far as spending and allocation of funds.

Current law states that ASEDA may issue its bonds from time to time “without further” authorization from the Legislature, subject to the procedures and restrictions in this chapter.

Under the Senate bill amendments, the ASEDA may issue its bonds from time to time “with prior” Fono approval.

“In an effort to continue its duties and responsibilities to the territory, the Legislature hereby provides that [ASEDA] shall present its activities and projects to be paid for by the bond proceeds and plans for repayment to the Legislature for approval prior to the issuance of new and future bonds,” according to the bill’s preamble.

Senate legal counsel Mitzie Jessop-Ta’ase was called to explain to the committee during Wednesday’s hearing the gist of the bill. She reiterated — in Samoan — that the measure would require ASEDA to first come to the Fono with their plan, and that would include projects to be funded and the amount of money for each project, before moving to sell any future bonds.

The Fono will then give its “blessings” and once it’s approved through the Legislative process, ASEDA cannot make any changes, without first coming back to the Fono, she said, and reminded senators that under the local Constitution, the Fono is given the authority to appropriate government spending.

Sen. Tuaolo Manaia Fruean said he believes any money received through the sale of bonds, should come back to the Fono for appropriation, as required under the Constitution.

The bill is going through the final approval process in the Senate before it’s sent to the House for consideration.