Pago Pago, AMERICAN SAMOA — Commissioner of the Office of Financial Institutions, Tuasivi John Marsh, said he “sees no reason to sell the Territorial Bank of American Samoa” during a House hearing on October 4, 2023, when he testified on administrative bill 38.6, which seeks to amend the enabling legislation that sets up TBAS, requiring all government funds to be deposited in TBAS.

Before questioning began for OFI Commissioner Tuasivi, he read a statement concerning the bill to the Commerce Committee, which states, “House bill 38.6 would carve out necessary exceptions to the statute requiring government funds and deposits to be deposited and maintained at the TBAS. 

“This bill should be passed and enacted but if I may, I’d like to suggest a small but important amendment. This bill addresses an important dilemma — the Federal government generally requires federal grants funds to be deposited at financial institutions, insured by the Federal Deposit Insurance Corporation,” Tuasivi said. 

Tuasivi continued, “TBAS is not insured by the FDIC and is extremely unlikely to obtain FDIC insurance, as long as the American Samoa Government owns a controlling interest in the bank. 

“The ASG is a semi-autonomous agency, and should never be put in a position where it must choose between compliance with federal grant requirements and complying with the letter of the local statute. ASG needs federal grant funds to help our people,” Tuasivi said, as he read his statement aloud. 

“We have no choice but to comply with the federal requirements. However, with respect, I suggest that the language of the bill be ‘tweaked’, to ensure that its intent can be properly fulfilled.

“The statute currently requires government funds be deposited at TBAS, without exception.

“And the current version of House bill 38.6, would replace the words ‘without exception’, with the phrase ‘unless otherwise specifically prohibited by federal statute or regulation or as directed by the order of the court, or any other state or territory or of the United States,” he concluded. 

The OFI Commissioner then voiced a concern in regards to “federal agencies imposing grant conditions that are not specifically required by statute or regulations, but are still within the agencies legal discretion to impose. 

 “For example, the ASG might receive a grant where the agency's grant documents require the grant fund to be deposited in an FDIC insured institution,” said Tuasivi as he explained what this meant.

Tuasivi continued by stating that “even though that requirement is not specifically spelled out in the applicable statute or regulation. 

“Some agencies do have a policy to apply such a requirement to all of its grants, and in such a situation, the ASG should not have to turn down needed grant funds, just because the federal requirement was not specifically listed in the statute or regulation,” said Tuasivi said.

The OFI Commissioner stated that it is not “inconceivable that the ASG and/ or its semi-autonomous agencies may receive grants from sources other than the federal government, which can include private foundations such as the Gates Foundation. 

“In such a case, the ASG would be able to comply with the grant condition, so it can accept the money without violating the law.”

The OFI Commissioner closed off his opening statement by reiterating and respectfully suggesting that the phrase ‘without exception’, be replaced with “except as otherwise necessary to comply with the requirements imposed by any grantor or by any applicable statute or regulation or by any direction or order of any court of this country, or any other state, or territory, or of the United States”.

Tuasivi also told faipule that the bank is doing well, and with proper management, it can fulfill its mission of serving the people of American Samoa effectively.