Pago Pago, AMERICAN SAMOA — Governor Lemanu P. S. Mauga is acknowledging that The Territorial Bank of American Samoa (TBAS) Board of Directors has voted against removing TBAS CEO David Buehler.  And while Lemanu is now turning his focus to the Office of Financial (OFI) Institutions to fully remedy the situation, he is asking for an interim move from the board.

As the OFI will be conducting a hearing on the Complaint for Removal that it issued to the CEO, the Governor sent another letter to the TBAS Board asking that the CEO be placed on Administrative Leave pending the outcome of the hearing.

 “The Board has chosen not to remove CEO Buehler,” the governor said in a press release yesterday, referring to a letter he received from the TBAS board earlier this week.

“This decision is well within the Board’s discretion under the law. They are also empowered by the law to determine whether changes should be made to improve overall bank performance.

“Given the recent and ongoing failure of the bank to provide its audited financial statements as required by law, the impact of this failure on ASG, and the upcoming OFI complaint hearing, I ask that the Board give all due consideration to what changes can be made both temporarily and permanently to improve the overall performance of the bank in meeting its obligations to the people it was established to serve,” Governor Lemanu said.

BACKGROUND

According to Samoa News archives, when the OFI was set up in 2015 the original bill stated that the Office of Finance Services “shall have the authority to regulate all financial institutions that operate or conduct business in the territory, including but not limited to commercial banks, holding companies, credit unions, trust companies and retirement funds, consumer money lenders, money brokers, mortgage loan originators, collection agencies, money transfer services, debt settlement service providers and any ASG-owned financial and depository institution.”

Utu Abe Malae who was a member of the original board assured the Senate Government Operations committee at the confirmation hearing for the TBAS board members that the Office of Financial Institution (OFI), which is set up by law, would review, monitor, regulate and take necessary action, when required.

Samoa News published a Just Asking in yesterday’s issue that asked the governor, “Whatcha gonna do, sir?” (See it in story below.)

Of note, Governor Lemanu’s answer is to ask the board to place Buehler on leave, while awaiting the outcome of the OFI hearing on the Complaint for Removal that it issued to the TBAS CEO.

However, another answer he will need to make is about the TBAS board — What is he going to do about a board that will not ‘move’ on the auditors’ request for a 3rd-party investigation into the complaint about possible wrongdoing by the CEO, thereby causing the delay with the bank’s audited financials? It looks like the OFI has the authority to remove the board or at the very least, make then do the ‘right’ thing.

(Sources: Governor’s Office press release & Samoa News archives)