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Charter Bank one step closer to being approved by Fono

The governor’s Charter Bank bill is another step closer to being approved by the Fono after the Senate yesterday endorsed the House version of the measure in second reading — with one major change dealing with members of the bank board, which senators believe should be selected from among members of the community.

 

The original version of the bill called for the Territorial Bank of American Samoa to be overseen by a seven-member board that would include the lieutenant governor, ASG Treasurer, Commerce Department director, the bank’s chief executive officer and three members at large who are nominated by the governor and subject to Fono confirmation.

 

Before approving its version in final reading last week, the House amended the bill to say that the bank’s CEO is an ex-officio member and has no voting rights on decisions made by the board, which should have four members at large.

 

The Senate Budget and Appropriations Committee during discussion yesterday kept this amendment by the House, but made one major change by deleting the lieutenant governor, ASG Treasurer and the DOC director as board members. The measure now reads that the board shall have seven members appointed by the governor and confirmed by the Fono.

 

The House version of the bill then went through second reading yesterday in the Senate and was unanimously approved with the amendments included. The measure goes through third and final reading today, where it's expected to be fully endorsed by the Senate. It will then go to the House for their decision on whether or not to accept the amendments.

 

If the amendments are rejected, a conference committee of both chambers will be called to iron out any differences and make a decision on the final version. The Fono is hoping to approve the measure before lawmakers take their 4-week recess starting at the close of business tomorrow.

 

SENATE COMMITTEE HEARING

 

Earlier yesterday, the Senate Budget and Appropriations Committee called in — for the third time — members of the American Samoa Economic Development Authority to discuss issues of concern as well as proposed changes which were initiated by Senate President Gaoteote Tofau, who wanted to know why the administration put on the board three permanent title names as members: Lieutenant governor, Treasurer and DOC director.

 

He said the Senate does not question who the governor appoints to the board, but the senators’ concerns, which were echoed by the public, is having the titles of lieutenant governor, DOC director and Treasurer be permanent members on the board. He said these individuals have other duties and responsibilities in government — not to sit on a bank board.

 

The Treasurer and DOC director also have their own many duties, he said, adding that the Treasurer sits on other ASG boards, including the ASEDA board. Further these individuals have high salaries and there will be public complaints that they will also be getting stipends of $5,000 each.

 

He said these three ASG officials sitting on the board will bring more public complaints — that the Charter Bank will be controlled by the governor.

 

Attorney General Talauega Eleasalo Ale, who is also an ASEDA board member, explained that the ASEDA board believes there should be permanent board members — the three with the specific titles — who are from the government.

 

He said the Treasurer was selected because that person oversees ASG finances and has experience to deal with money matters in the Charter Bank and if this bank is successful, profits earned with be presented to the Fono for allocation to benefit the community.

 

For the lieutenant governor post, Talauega said that it was initially suggested for the Attorney General. However, he said the Attorney General’s Office will play a legal role in dealing with bank issues and therefore presents a conflict of interest. In the end, it was the lieutenant governor who was put on the board.

 

Based on Talauega’s testimony, it appears the ASEDA board and the administration have no problems with amendments by the Fono. In the end, the board pointed out that the final decision on the bill rests with the Fono, if they see that such changes will be for the betterment of the bank.

 

ASEDA board member, Utu Abe Male, executive director of ASPA, told the committee that off-island financial experts had recommended the CEO be a board member with voting rights. He said the CEO should have full participation on board matters and decisions.

 

Speaking on behalf of the board at the end of the hearing, board member Taimalelagi Dr. Claire Poumele, who is also director of Port Administration, pointed out that there some people who believe that the administration is rushing into setting up this bank, but that is not the case. She said the Charter Bank is the culmination of 18 months of research and review, because the governor wants a bank to help the community’s banking needs and that the bank is an American financial institution.

 

See tomorrow’s edition on what the government has to say about ASG’s accounts with Utah-based Zions Bank, which will be the correspondent bank for the Charter Bank.