Vice Chairman of the American Samoa Economic Development Authority (ASEDA) Utu Abe Malae, said there were many probing questions from the bond raters during the four days of ASEDA meetings held in Honolulu last week

Responding to Samoa News queries, Utu said it was like responding to auditors in person or even being cross-examined; there were many probing questions. 

He said the longest of the three sessions took five hours. Asked about the questions, Utu gave an example.

“One rater wanted to know the details about the Retirement Fund; what actions are being taken to improve funded liability. (The Fund had already been advised to make an easy change that would increase revenues).”

Utu said that all in all, “I thought it went well, considering this was the first time American Samoa presented a proposed bond issuance before raters—Fitch, Standard & Poor's and Moody's. 

A lot of credit goes to the financial and legal advisers from Utah, he noted. “Without their expert guidance we would have been lost.”

Samoa News asked Utu to explain the status of the bonds that were supposedly issued before they went through with the meeting. He confirmed, “Yes, bonds were issued before, but they were Non-Rated (NR) which means we did not go through the rating process but were left to the whim of the marketplace.”

Utu further pointed out that the proof of the pudding is in the eating—and “we will be informed in several weeks about the rating of the bonds.”

Of course, we would like for them to be "investor grade” he added.

At the meeting Governor Lolo Matalasi Moliga gave opening remarks with the overarching theme of "changing our mindset".  Lolo stated that for over a hundred years American Samoa has depended on the Federal government for financing infrastructure and other large ticket items. Financing projects piecemeal does not result in well-thought out, integrated improvements to the Territory, he said.

“This is the first bond issuance of its kind; the financing is being coordinated with federal funding as well as local funding.”

Lolo went on to say that it is unprecedented for the two branches of government—Executive and Legislative— to be of one mind in backing the bond issuance and passing revenue measures that bolster the strength of our credit.

According to Utu, Senate President Gaoteote Tofau Palaie and House Speaker Savali Talavou Ale were present in support and provided closing remarks.

Utu also said that working together with fellow directors in an environment where there are no interruptions and a common goal in mind, makes for better decisions.  He stated that the entire American Samoa Team did great with the presentation and the public would have been proud of the work put through for the bond raters.