Pago Pago, AMERICAN SAMOA — Attorney General Fainuulelei Falefatu Alailima-Utu has confirmed they are not leasing out the ANZ building in Tafuna as they are in “negotiations” with a federally insured bank overseas to set up shop in the territory.

“We’re holding the ANZ building in Tafuna for a federally insured financial institution and hopefully if they do come, they can occupy that building,” he said during a House hearing this week.

The AG did not elaborate on further details, citing that “negotiations” are underway.

“I prefer not to publicly disclose the details of the negotiations. It is a sensitive matter and of course we want to disclose it at the proper time; especially if we do conclude an agreement, but right now it's still in the process of negotiations,” explained Fainuulelei.

At the moment, the AG said they are waiting for an “offer letter” and then ASG can discuss with the financial institution their written offer, and any conditions that they would require in order to move down to American Samoa,” said the AG.

The House hearing where this possibility was brought up pertained to an administration bill to amend the code annotated 28.0214, in relation to deposits of American Samoa government funds and semi-autonomous agencies with the Territorial Bank of American Samoa (TBAS), as indicated in the local statute when the bank was first established in 2015.

The issue on the ANZ buildings was raised when Faipule Avagafono Tuavao Vaimaga Maiava expressed concerns about the long lines at TBAS on a daily basis.

He pointed out there are buildings in Fagatogo and Tafuna previously occupied by the ANZ Amerika Samoa Bank and he asked whether TBAS is considering taking up those two building to better serve the community.

“And I’m only bringing this up, because I see those long lines every day. Do you have any plans to open up another branch?” asked Avagafono.

TBAS Manager David Buehler explained they are actively looking for another building.

“We did approach the government on the Tafuna ANZ building and we were advised that they are holding it for another financial institution and it's not available; but they did offer us the Fagatogo property so we're going to be looking at that as a possible alternate site for the bank in this part of town,” said the Bank Manager.

 Fainuulelei however interjected saying that he was not sure who offered the TBAS and Buehler the ANZ building in Fagatogo.

“I’m one of the main members of the ASG bank committee and we did not offer, unless somebody else offered the building.

“In fact I think they're still at this moment using the building. They had informed us that they still need that building as of today and that their plan, I believe, is January 31 would be their last day to use that particular building.

“I understand that TBAS is looking into going into various buildings and possibly building a building in Tafuna for TBAS.

“We’re holding the ANZ building in Tafuna for a federally insured financial institution and hopefully if they do come they can occupy that building. But if the plans do not work out, the governor — I’m pretty sure— will seriously entertain the request by Mr Buehler to use that building,” said Fainuulelei.

The AG made it clear the land and buildings in question belong to the government “they don't have to give us anything — we own those buildings once they leave here.

“That's the language that is written in both leases,” he said.

The AG also emphasized the importance of having a federally insured bank and why they are looking into a second bank.

“One, they can guarantee or ensure the deposits of customers up to $250,000 and that's very important and of course over 90% of our residents can [then] get their deposits insured.

“Secondly, its federal oversight. It is very very important that we have federal oversight to ensure that consumers are protected and that there is sound and safe management of the bank that the FDIC is regulating or overseeing. 

“Also locally based credit. We do have federally insured credit unions like Navy Fed but they're off island. We do not have it here you know so that we have the local officials making decisions on credit applications because that is a very important issue is that businesses and our people have access to credit — that's how our economy is going to grow.

“And if we have a federally insured bank that can give low credit fees, low costs and low interest — that’s very important for our consumers and of course the investment act would then apply to financial institutions that have branches here and they're obligated to provide a certain level of service to our community.”