14 Sep 2005

American Samoa legislature approves hospital loan

4:14 pm on 14 September 2005

American Samoa's House of Representatives has unanimously approved the bill authorising a loan of 10 million US dollars to pay off debts for the LBJ hospital.

The money is coming from the territory's retirement fund.

Our correspondent says the Senate is dragging its feet on the loan bill and is awaiting information from the LBJ hospital concerning which debts are to be paid with the loan proceeds.

The senate president, Lolo Letalu Moliga, says the territorial governemnt should forgive old debts of the hospital.

He says senators want to be clear on which bills will be paid with the loan, to make sure that bills which are to be repaid with an original 5 million dollar loan, are not included.