House Speaker Savali Talavou Ale stormed out of the House chamber yesterday morning during a committee hearing, after accusing the Chairman of the Economic Development Committee Larry Sanitoa of purposely delaying the administration bill for the Charter Bank to be reported into session for the lawmakers to act upon — by “fa’ata’amilomilo le pili” — giving the bill the run around, or literally ‘in circles’.

Savali slammed his hand on the desk, while demanding that Sanitoa report the bill with changes and saying that the translation of the Samoan version can come at a later time, however the House needs to act on this measure right away. At the end of the committee hearing, Savali raised his voice while again slamming his hand on the desk at the same time. He then stormed out of the House chamber while committee members sat there.

Sanitoa during the committee hearing thanked the lawmakers for assisting in this difficult measure and pointed out that there are still reports that are needed prior to the Fono acting on this measure.

Sanitoa stated that there should be a public hearing and that someone from the Zions Bank should come before the Fono, as the lawmakers have questions that need answers.

Vice Speaker Fetu Fetui Jr then motioned to add the necessary changes to the bill, which were approved by the committee.

However, Sanitoa pointed out that this is not an easy task, as there are numerous unanswered questions about the bill, and he called for another hearing into this matter. At this point, the Speaker said there is no time for the committee to wait, and stated that now is the time to act on this bill.

The House Speaker further stated that he was ready to have the bank bill before the House for its second reading at that time, but Sanitoa pointed out that the Samoan version of the bill has yet to be completed in translation. The Speaker responded that the bill could be approved without the Samoan version until the third reading. He told Sanitoa that it’s been too long that this bill has been with the committee, and it should've been reported in for second reading.

He then claimed that Sanitoa was purposely delaying the bill, while slamming his hand on the desk loudly and then storming out, while Sanitoa was trying to give him an explanation.

In the end, the bill did make it to the second reading during the House session yesterday, and was approved with changes in second reading. It is expected to be in final reading today in the House. One of the changes made to the bill is for the Charter Bank’s CEO to not vote during board meetings.

BANK ISSUES COME UP AT CABINET MEETING

During the Governor’s cabinet meeting, ASPA CEO Utu Abe Malae pointed out that there are several questions that haven’t been asked, however those questions are in the back of the minds of lawmakers and also the community.

He said there was an American Samoa Bank and it failed miserably — what’s the difference? and  2) What is the confidence level of the public that politics will not be involved, so there would be no undo influence from the governor (referring to governor’s position- not Governor Lolo) to allow loans to do things that are not necessarily bankable — those are the questions that need answering, he told the AG and those who are attending hearings before the Fono on the Charter Bank bill.

(Samoa News should point out he was referring to a bank established by the Navy in 1914 and absorbed by Bank of Hawaii in 1971 when BoH started doing business in the territory.)

Utu who’s part of the American Samoa Economic Development Authority, stated that in North Dakota they have a very successful state bank system. Utu urged that there is a need to study that bank and try to model our bank after that one.

He also pointed out that in order to have some regulatory arm over this bank — given that the Charter Bank will not be FDIC monitored — the Office of Finance Services will have strict regulations governing this proposed bank.

He pointed out that these restrictions are very important. He stated that he wanted to maybe instill some kind of confidence level. “People talk a lot about the fact that they don’t know enough about the situation… this is what we’re trying to do — to answer those concerns of the community.”

Provisions of the proposed bill state 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.