2 Aug 2005

Workers in American Samoa oppose Retirement Fund providing hospital loan

8:35 pm on 2 August 2005

American Samoan Government employees who are members of the Retirement Fund are objecting to the plan to have the Fund issue a 10-million US dollar loan to the local hospital.

A man who has been a member of the fund for more than 30 years says he hopes the Retirement Fund Board does not approve the loan.

He says the hospital hasn't been able to repay the 5 million dollars loaned to it by the government last year, and he's worried that the hospital may also default on the bigger loan.

The member says a substantial number of employees are reaching retirement age and he is skeptical about the retirement fund's security if such big loans are being dished out to customers with questionable repayment ability.

Two female government employees also expressed their opposition to the

governor's plan.

One said she would rather the money be invested in a sure money making scheme for the Retirement Fund.

She was against the government continuing to bail out the hospital when the LBJ management hasn't proven it is serious about cutting costs.