Pago Pago, AMERICAN SAMOA — Manu’a #1 Faipule Alumamalu Filoiali’i Ale said that the excuse made by the president and CEO of the Territorial Bank of American Samoa (TBAS) explaining the many reasons for the delays in installing a new ATM machine in Manu’a “is an insult to him and his people.”

Alumamalu made this statement after he, and members of the House Government Operations committee heard testimony from local businessman Timothy Jones who had a contract with the TBAS to install ATM machines in Tutuila and Manu’a.

In response to questions from the committee chair on how he feels after hearing the reason for the delay, Alumamalu said, “It’s an insult to me and my people for someone who came here in this chamber — who didn’t do his homework and tried to give excuses of the problem that had been occurring in Manu’a. Now I know where the problem is.”

Alumamalu said that he hopes the TBAS CEO, David Buehler will have another chance to appear in the chamber at a later time so that he can say straight to his (Buehler’s) face how he felt about the excuses he made every time he questioned Buehler about the ATM machine for Manu’a.

Jones appeared before the House Government Operation committee last Thursday to give his insight about TBAS service for the people and explained the issue of the ATM machine service TBAS is providing for the community.

The hearing was chaired by the committee chair, Faipule Faimealelei Anthony Fu’e Allen.

Faimealelei made it clear to the committee that the reason for the hearing is for faipule to get a better understanding about the service TBAS is providing for the community.

He said that everyday, members of the community have reached out to their faipule and voiced their concerns about the service TBAS is providing them.

Before Jones testified before the committee, Vice Speaker Fetu Fetui Jr advised him not to go into details because he has a pending lawsuit against TBAS CEO regarding the ATM service and the committee doesn’t want to do anything to ruin his case in court.

Jones explained that most people are aware that before his company came online around 2016, it was known by everyone that every weekend the ATMs across the island run by the big banks — Bank of Hawaii (BoH) and ANZ Bank — usually ran out of money.

Local businessman, Timothy Jones speaking to the chair of the House Government Operation committee Faipule Faimealelei Anthony Fu’e Allen after the hearing last week that focused on the Territorial Bank of American Samoa (TBAS) services to the community. [photo by AF]

That’s why he set up the ATM business with his son because the banks were having problems providing qualify service to the people — and this created a business opportunity for him and his son.

“This was a new venture for me so we spent a lot of time convincing the ATM networks and the sponsor banks to go with us in American Samoa,” Jones explained.

He said it wasn’t until 4 years of searching across the United States that one company agreed to help them set up their business.

When asked how he wanted the Fono to help him — with the ATM service for the community — Jones said he wanted to be provided with a TBAS “settle account”, so he can continue with his service.

When asked to explain what a settle account is, Jones said it’s just an account in the bank system so that the bank can recognize that he’s neither a terrorist nor a money launderer.

He said TBAS established a settle account for him and his company after negotiations and he has a letter to prove it. The settle account is legal and perfectly appropriate, however, Mr. Buehler closed it down and later explained to him that the reason he closed the account was because of Anti-Money Laundering (AML) regulations.

He said that anytime a private sector cash business wants to establish an account through the bank, the bank is require by federal law — under AML rules to make sure that business is not a money laundering device nor a terrorist group.

“TBAS did that assessment and was satisfied that my company is not a money laundering nor a terrorist group that moves cash around the world, however Buehler decided to close down the settle account after I handed over everything he needed and there was no reason to close down that account,” Jones said.

Jones said the ATM business is worth over $350,000 a month with over 50,000 transactions a month. Each transaction is at valued around $4.95.

“If you could give back the settle account, my company will quickly install new ATM machines for Ta’u and Ofu,” Jones promised the committee.

He further stated that the people have the right to understand what is going on about the ATM service on Tutuila and Manu’a.

He said that people in Manu’a don’t understand that TBAS  has no ability to set up an ATM system. He tried his best to be back on track with this service but the settle account stopped him from doing so.

“Please, set me up a settle account and I promise that I will go back and serve the community in the ways TBAS could not do. I will land two ATM machines in Tau and another two ATM machines in Ofu — because it’s not a loss. TBAS called it a loss and that is not true,” Jones said.

Faimealelei said this is the reason why TBAS was unable to give accurate answers when the faipule questioned them about the ATM service in Manu’a, because they know exactly what happened.

Fetu called Buehler’s statement about the reason why it’s hard for TBAS to install more ATM machines in Manu’a “crazy” and with “no foundation”.

He said his people in Manu’a deserve better but as long as Mr. Buehler is in charge of the operation, people of Tutuila and Manu’a will continue to suffer.

“My people are suffering so much because of this COVID-19 pandemic, which stopped the government’s services for Manu’a and they are calling everyday accusing us of sitting here doing nothing to bring ATM services to Manu’a,” Fetu said.

Manu’a #2 Faipule Tioalii Fau Sai echoed Fetu and Alumamalu’s comments regarding the service for Manu’a.

He said that the people of Ofu and Olosega/Sili are also suffering for the lack of the ATM service for them. He said when someone from his constituency needs cash, that person has to travel to Ta’u by alia to withdraw money from the ATM machine there.

And if the ATM machine in Ta’u is not working, the person has to return to Ofu/Olosega and wait for a plane to fly to Tutuila to use the ATM machine.

Tiaoalii then supported Mr. Jones’ request for a resolution requesting the TBAS to reopen the settle account so that the ATM service will be back on track and for the people in Manu’a can get their new ATM machines.

After the hearing, the committee came into an agreement to introduce in the chamber a Resolution in support of the request by Jones.

There was no discussion in detail about how the committee is going to move with the resolution. Faimealelei told the committee that they will revisit this issue when the Fono returns to session in July.