On the first working day of the special Fono session yesterday senators introduced both measures that Governor Lolo Moliga has asked them to approve.
An amendment to the law establishing the Territorial Bank of American Samoa and the confirmation of their colleague, Senator Paepae Iosefa Faiai as an associate judge.
The TBAS measure was also introduced in the House . Only senate confirmation is needed for the confirmation of the new judge.
The only change in the TBAS law is the removal of all references to the Holding Company.
The House had a discussion following introduction of the TBAS law as to whether a hearing was needed,
Their decision was no hearing needed, and the bill will be reported to the floor for second reading today,
Meanwhile Senate President Pro Tem Nuanuolefeagaiga Saoluaga Nua assigned the bill to the Budget and Appropriations Committee, and Sen. Tuaolo Manaia Fruean, the vice chair moved that the bill be on the calendar for second reading today.
Senator Tuaolo convinced fellow senators that Governor Lolo’s explanation in his speech at the opening of the special session the day before was thorough and gave them the information they needed to know about why it was important to get this change passed right away.
His motion to bring the bill in for a second reading today was supported by Senators Tuiagamoa Tavai and Faiivae Iuli.
Faiivae noted however that he needed clarification on certain provisions of the bill,
A brief recess was called during which Faiivae asked Senate Counsel Mitzie Jessop Taase about the removal of the current language in the law referring to the role, functions and responsibilities of the holding company.
The attorney said that the term holding company relates to commercial banks, and this is the group in a bank that is responsible for among other things securing assets for a bank.
Therefore she said the holding company doesn’t apply to TBAS because its assets are owned by the government.
Governor Lolo Moliga gave a similar explanation during a meeting with the independent media last Friday.
Also proposed in the measure that the Fono is reviewing is language stating that the CEO and the management team are responsible for the management of TBAS.
One of the concerns of the Federal Reserve is that the structure of the bank with the appointment of board of directors of TBAS would subject the bank to political influence.
The bill’s preamble states that TBAS has yet to secure transit and routing numbers allowing it to provide on-line or electronic banking services, in part, due to objections by the Federal Reserve Board of Governors.
It also states that amendments to the TBAS statute resulting in the dissolution of the Territorial Bancorp Holding Company “are required to facilitate approval of a master account for TBAS with the Federal Reserve Bank..
