The board member positions for the government’s proposed Charter Bank was one of the issues discussed during the hearing on the Charter bank on Tuesday before the House Economic Development Committee. In the bill establishing the bank, it indicates that the CEO will sit on the board of directors along with the Lt. Governor, ASG Treasurer, Commerce Department director, CEO and members at large, who are nominated by the governor and subject to Fono confirmation.

Tualauta faipule, Vui Florence Vaili Saulo pointed out that she supports the move by the Lolo and Lemanu Administration to establish a bank for the benefit of the public, but her concern is about the CEO and Lt Governor sitting on this board. “To me, it’s a bit dangerous, don’t you think… do we really want to take that risk?” she said, referring to the Lt. Governor sitting on the board.

Vui made it clear that she was not referring to Lemanu, but rather to government leaders who will be sitting on the board in the future. She also took issue with the Treasurer being a member of the board and alluded to a conflict of interest by pointing out that this may cause “confusion” and it may mix up funding of the bank and ASG funds.

ASG Treasurer Ueligatone Tonumaipe’a pointed out to Vui that these bank monies are government funds, and because he’s the Treasurer, he has to sit on the board. Regarding the CEO position, Vui pointed out that this could be a conflict of interest as he will be enforcing the policies implemented by the board, hence the reason the CEO should not be a part of the board.

The comments by Vui were strongly supported by House Speaker Savali Talavou Ale, who stated that the CEO should sit on the board but not vote during meetings.

Attorney General Talauega Eleasalo Ale informed the lawmakers that those who have experience in the banking business have recommended that the CEO sit on the board.

Talauega said the Committee has already sorted out the pros and cons of the board member issues, however if the Fono feels that is not the right thing, then it’s in their hands to amend the proposed bill.

The AG further explained that in the banking world, in order for a professional banker to be attracted to take the position, this is among the ways to lure them: a guarantee that the voice of the bank and its employees along with recommendations will be heard.

Vui also asked why the board members are getting compensated on top of their salaries, and the AG again told them that the bill is in their hands.

According to the proposed bill, the bank’s CEO will not receive any additional compensation for being a board member, except for his annual salary. The other board members are to receive $5,000 per year, while the chairman gets $6,000.

The bill makes clear that each board member — before taking office and at the end of each fiscal year — must file with the bank a personal financial statement, which among other things, discloses any financial interests that the board member, or his or her immediate family (spouses and children) have in any business entity that is a customer of the bank.

Manu’a faipule Vesi Talalelei Fautanu Jr asked the Treasurer if there is a possibility that Zions bank would come down to the territory and tell them directly that they are ready to take up the partnership with American Samoa’s charter bank. Tonumaipe’a explained that Zions officials are ready any time, and as soon as we give them the green light, they will come down if that’s what the Fono wants.