17 Jan 2005

American Samoa governor introduces bill to pay Rainmaker debts

12:01 pm on 17 January 2005

American Samoa's Governor Togiola Tulafono has submitted to the Fono a $1.1 million appropriation bill to relieve debts of the American Samoa Development Corporation, which owns the Rainmaker Hotel.

The bill authorises the government to enter into a loan agreement with the corporation in order to pay the hotel's debts.

Under the act, the territory's Treasurer would make the payments directly to the creditors upon confirmation of the validity of the debts.

The priorities to be paid with the loan are federal income taxes, power and phone bills, other vendor payables incurred for essential operations and lastly local taxes and lease rent.

Another provision of the legislation is the purchase of stock held by minority shareholders of the hotel at 10 dollars per share.

A sum of 300-thousand US dollars is to be used for the stock purchase.

Funding for the hotel debt relief bill is to come from leftover proceeds of the Huricane Val insurance settlement.