Acting Governor Lemanu Peleti Mauga’s response to the report by the US Government Accountability Office on the territory’s public debt states that ASG could not rely on the $10 million provided annually by the US Department of Interior for its infrastructure needs.
In a June 3 response to the GAO report, Lemanu said that ASG has a duty to provide goods and services to our people so the private sector can flourish with reciprocal improvement in the quality of the people’s lives.
“This responsibility requires that we continually maintain, repair and upgrade public infrastructure such as roads, public utilities, port and airport facilities, schools and other physical infrastructure, not only to meet the needs of the people but also to forge the creation and sustainment of a conducive economic climate for continual bolstering of the territory’s economy.”
“While we’re grateful for the Department of Interior for providing $10 million annually toward these capital projects, this funding is woefully insufficient to pay for all required capital needs,” wrote Lemanu.
The GAO says American Samoa’s total public debt outstanding grew from $85.9 million in FY 2015 to $122.2 million in FY 2017, an increase of 42%.
According to the federal agency, the territory continues to face fiscal risks that may affect repayment such as a reliance on a single industry and significant pension liabilities.
In the acting governor’s response to the GAO report, Lemanu said that ASG has embarked on a strategic financial plan “inclusive of the use of publicly issued debt to not only supplement but also maximize the use of local funds to address our capital needs.”
He explained that the finance plan includes public private partnerships propelled by new federal incentive schemes such as new Market Tax Credit, opportunity zones and other operating strategies such as power purchase agreements.
Lemanu also assured that ASG “will never issue new debt without identifying the long term repayment source to fully liquidate any debt to its maturity.”
He pointed out public debt has been used to bolster the local banking sector by investing in the Territorial Bank of American Samoa with the long term goal to transition the bank back to the private sector.
He also mentioned the investment in high speed broadband capacity.
Lemanu also told the GAO about how federal policies have hampered the single local industry, fish processing, and efforts to develop tourism.
He said American Samoa is trying to assume responsibility for the needs of our people through exploration of other financing options. It will continue to seek help from the US government to help it attain full self reliance and economic self sufficiency.
