House Vice Speaker Laolagi F.S. Vaeao says many Fono members are opposed to Gov. Togiola Tulafono’s $5 million proposal to purchase assets of COS Samoa Packing due to the “lack of information and disclosure” and each lawmaker has an obligation to act in the interest of their constituents.

Laolagi was yesterday responding to the Governor’s comments  to the media, regarding the bill now pending in the Fono, wherein he said that opponents of the measure should come up with a better option to restoring jobs and this lost part of the local industry.

“Just to object to keep this initiative from moving forward is personal and it is wrong,” he said in part. “Its nice to object and take home the taxpayers monies and do nothing.”

Laolagi agrees with the Governor that not all lawmakers are opposed to the bill, or its concept. “But many are opposed to the lack of information and disclosure— lawmakers are not even sure what is being purchased,” he told Samoa News. “To this day, no acceptable business plan has ever been presented. Nothing for estimated revenues and expenditures and costs of operating such a business.”

He said Togiola has obviously weighed the policy options of where to commit the $5 million and has chosen a cannery over the hospital and health care, schools, roads or other projects.

“But certainly there is reluctance [in the Fono] to spending this $5 million on a questionable investment when it can be spent to save lives such as on the off-island medical referral program,” he pointed out.

According to the Manu’a lawmakers, the Governor mentioned faipule’s constituents who have lost their jobs due to the COS closure, but “my constituents aren’t complaining about lost jobs— they ask me why they can’t travel to and from Ofu and Olosega, or to and from Tutuila.”

(Laolagi represents Manu’a District #2 which is comprised of Ofu, Olosega and Sili.)

“Instead, my constituents experience on a daily basis no reliable air service and no reliable shipping service,” said Laolagi. “They observe an administration that cannot get the MV Sili repaired and certified to serve their needs. They hear about, but seldom see, an airplane that can’t fly for one reason or another and when it does, it does not fit their basic needs. They observe the purchase of a ‘pleasure yacht’ that is absolutely worthless to them— and ask why.”

“If the government ... is so good at running businesses, I must ask: Is not operation of the MV Sili a business? It represents an initial $5 million investment and has not consistently serviced Manu’a in over a year,” he said. “In my humble opinion, that is not a model of success and my constituents realize it.”

Laolagi claims Togiola is, and has been, running a business and that business is the American Samoa Government. He said the Governor recently informed the Fono that the ASG business finished FY2009 at $8.8 million “in the hole” and in FY2008, that same business— ASG— overspent its budget by $11 million, according to independent auditors.

“Besides deficit spending prohibited by our Constitution and statutes, it is plainly just not good business to run up $20 million in debt,” said Laolagi.

“Do we want to allow $5 million of taxpayer’s money to be turned over so it can be put at risk in such an uncertain business? It’s easy to run a business when you don’t have to stay within your budget and are over-spending somebody else’s money, and that money is the taxpayers.”

“The Governor wants options. Well those options are narrowed and the question is: ‘How do we fund ASG deficits from the last two fiscal years?’ We cannot embrace the practice of deficit spending and it must stop,” he said.

“If not, we will be trying to maintain the jobs that are available. It seems the $5 million will now have to go to practically fund this huge deficit.”

Laolagi said Togiola— in a statement to the media— had attempted to compare ASPA, ASTCA and ASCC as businesses under government control that are not failing.

“All that can be said about this attempt to compare ASPA— our only utility company— ASTCA and ASCC with the globally, highly competitive and complex business of fish processing is, at best, a stretch of the imagination,” he said. “I don’t believe these [semi-autonomous] agencies were intended to operate on a ‘for profit’ basis. I would also expect some difference of opinion on the question of the degree of success of these businesses.”

Lalolagi said he wants to make it clear that there is absolutely nothing “personal” about this debate as suggested by the Governor.

“It is every legislator’s obligation and duty to act in the best interest of his constituents, to carefully and deliberately weigh all factors before making a major policy decision such as this one and to speak out on matters affecting our government,” he added.

During yesterday’s House session, Rep. Galumalemana Bill Satele voiced his concerns over the governor’s statement to the media about the $5 million COS bill, saying such statements towards House members are inappropriate and not the action of a leader.