22 Apr 2005

American Samoa's Rainmaker Hotel shares being sold to pay debt

8:47 am on 22 April 2005

American Samoa's Governor Togiola Tulafono claims that some minority shareholders of the government owned Rainmaker hotel want to sell their shares back to the government.

This is the reason for the inclusion of funding in an Administration bill to cover the buying back of stocks.

The Administration's bill seeks 1.1 million US dollars to pay the hotel's outstanding debts.

The hotel owes more than 600,000 US dollars to the American Samoa Power Authority and more than 300,000 US dollars to the US Internal Revenue Service.

The government is offering 10 US dollars a share - the same price private shareholders purchased them for 40 years ago.