Board members of the LBJ medical centre have testified to a Senate committee in American Samoa that the hospital has no money budgeted to repay the US$10 million loan proposed by Governor Togiola Tulafono.
The testimony by board chairman, Charles Warren and board member Sivia Sunia has created grave concern in the Senate because hospital has yet to re-pay the US$5 million loan it approved for the medical centre in 2003.
Mr Warren said no money has been budgeted to make any repayments for the loan.
He said the only way to repay the loan is new revenues expected from their cost saving measures.
The hospital needs 10 million dollars to pay off old outstanding debts for taxes and many vendors.