Pago Pago, AMERICAN SAMOA — The local Attorney General’s Office is pursuing a course of action against the Hope Dialysis Center (HDC) based on the Memorandum of Understanding (MOU) between the center and the American Samoa Venture Fund, as well as “a demand for all damages to which ASG is entitled under applicable law.” The pursuit of the course of action against HDC is based on a request from the local Department of Commerce (DOC).

In a letter, of which Samoa News obtained a copy, dated Apr. 7, 2022, addressed to Chris Fisher, as Managing Director of HDC, the Attorney General, Fainu’ulelei Falefatu Alailima-Utu, explains that HDC “is in breach of the MOU, “because it has not fulfilled its clearly outlined responsibilities under section IV of the MOU.”

The MOU, according to the AG, is between American Samoa Venture Fund (ASVF), a venture capital fund with State Small Business Credit Initiative (SSBCI) that is managed by ASG. The agreement was entered into with HDC on Sept. 17, 2018, and “shortly after execution of the MOU, ASVF provided a $300,000 capital infusion to HDC.”

“ASVF has met its obligations under the agreement to support HDC’s efforts to establish and expand its business in American Samoa,” Fainu’ulelei writes.

HDC, however, has not, he says, and is in breach of the MOU, with HDC’s non-compliance including, “but is not limited to the following issues each of which constitute breach of contract:

(i) failure to issue ASVF $300,000 of common stock,

(ii) failure to maintain DOC representation on HDC’s corporate board of directors, and

(iii) failure to provide required quarterly and annual financial statements prepared by an accountant licensed to practice in American Samoa on the timeframes specified in the MOU.”

AG Fainu’ulelei notes that DOC has tried to resolve the matter with HDC/ Fisher on several occasions, “all to no avail”.  He writes that the government would “prefer to settle this case amicably”, and requests that HDC/ Fisher takes “immediate action to remedy the situation by doing the follow:

1.        Promptly return the $300,00 of funds received from the ASG,

2,        Immediately appoint the DOC Director or her designee to HDC’s corporate board,

3.        Provide all financial statements prepared by an accountant licensed to practice in American due from 2018 to the present.”

The letter concludes with a request to please contact Fainu’ulelei “as soon as possible to avoid spending unnecessary time and money in litigation.”

The AG gives HDC/ Fisher thirty (30) calendar days from the date HDC/ Fisher receives the letter to settle the matter out of court. If not, “ASG is prepared to file suit in the High Court of American Samoa for breach of contract and all additional legal remedies available for the maximum amount of damages allowed by law.”

BACKGROUND

In a HDC press release, dated Apr. 5, Fisher notified the public that HDC is closing its doors next month (May) because it can not operate without Medicaid reimbursement.

According to the American Samoa Medicaid director, once the federal Public Health Emergency (PHE) declaration ends, which is on Apr. 16, 2022, HDC will no longer be eligible to receive Medicaid reimbursements.