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Fono to focus on ANZ Bank complaints in new session

Tualauta lawmaker Larry Sanitoa is suggesting a House Resolution be sent to the CEO/Chairman of ANZ bank in New Zealand highlighting the territory’s dissatisfaction with the bank’s overall services to the people of American Samoa, with a copy forwarded to the Federal Reserve System, the FDIC and/or any other federal or local regulator that oversees operations in American Samoa.

 

This was revealed in Sanitoa’s email to his colleagues on the recent issues for which he will be calling hearings before the House when it is back in session.

 

Sanitoa stated there are numerous complaints from the public regarding the ANZ services. He reminded his colleagues that a committee hearing was held last year with ANZ officials to address with them numerous public complaints about their services. He reminded them ”Branch Manager, Ms. Terese Salumbides and Mrs. Tasi Scanlon represented ANZ Bank at that hearing.”

 

The bank officials promised and reassured the committee members at that time that ANZ services would get better.  A year later and overall, their services have shown no improvement and are “absolutely horrible” for the lack of a better word, and overall “very disrespectful to our people,” Sanitoa pointed out, adding that he will be requesting a committee hearing to invite ANZ bank officials again to address these same concerns. 

 

“Dependent on the outcome of this next hearing, if it is not to our satisfaction then I suggest we submit a House Resolution to the CEO/Chairman of ANZ bank in New Zealand highlighting our dissatisfaction with their overall services to our people.  A copy of the Resolution should be forwarded to the Federal Reserve System, FDIC and/or any other Federal or local regulator that oversees operations in American Samoa.”

 

Sanitoa said he would follow up with the Fono’s legal team on the status of the newly approved statute creating the Office of Financial Services. 

 

BOND ISSUES

 

Sanitoa commended Governor Lolo Matalasi Moliga and the American Samoa Economic Development Authority (ASEDA) board, and all relevant agencies that worked diligently to assure we obtain a good credit rating, as this is very important for interested and potential investors.

 

However, the recently issued bond rating based on our credit worthiness is quite low due to ASG’s financial history.

 

 “It is very important for all of us to understand how much we will actually get from these bonds and what will be the interest rate. Sanitoa pointed out the need to know from ASEDA what other proposed projects there are, aside from the Charter Bank and paying off our loans and debts. 

 

“In addition, we need to know and understand the payment plan, given that we are obligating up to 25% of our revenue for repayment.  Again, this is very important for us to know, as budget hearings will commence soon.” Sanitoa stated that it would be beneficial to bring in Treasurer Ueligatone Tonumaipe’a and legal counsel Steve Watson to shed light on these concerns. 

 

MINIMUM WAGE

 

Sanitoa also raised concerns with the lawmakers on the next minimum wage increase of 50 cents, which begins in September. He said that, while there are no indications that Congress will hold off the next increase, it is important for lawmakers to have a better understanding of how the increase will impact our government finances, and how it will affect the business community, and the consequences to our overall economy.

 

He wrote, “…although, our economy is quite fragile at the moment given the uncertainty of the impact on recent increases of fees and taxes, it is my belief that we have an obligation to do the right thing for our low wage earners.  We also need to know the status of increments for our ASG employees.”

 

Sanitoa requested that lawmakers bring in the Director of Commerce, Keniseli Lafaele, Treasurer Ueligatone Tonumaipe’a and a representative from the Chamber of Commerce.

 

At the last cabinet meeting Governor Lolo noted that American Samoa is a member of the US family, yet based on what the people are earning, it feels like “we come from a third world country, and we cannot accept this.”

 

Lolo said his belief is that “in order to change the economy, we need this minimum wage.” However he is also having his people submit a subsidy proposal to the federal government.

 

He said, “If the minimum wage is $3 and the current employee is making $4, then they will subsidize the $3 they propose.” Sanitoa further pointed out that here are several other important legislative matters that should be considered for committee hearings, such as the status of investment/loan funds at DBAS and an update on the SSBCI investment implementation.