31 Dec 2010

American Samoa treasurer warns of unspecified cuts

9:38 am on 31 December 2010

The American Samoa Treasurer says revenue sources for the government are stretched, but he has assured the governor he will find the money to meet the government's payroll.

But Magalei Logovii says that will only be for the pay on Monday, and beyond that, something will have to be done.

He is meeting the Governor to look at finalising cost-cutting measures which could include cutting work hours for about 5,000 employees, reducing the government workforce by 30 percent and auctioning off government vehicles and equipment.

Our correspondent in Pago Pago, Monica Miller, says there's not a lot of information around, and people are concerned.

"They really want to know what's causing this, how much of a shortfall is the government going through. Also, what are some other alternatives that they can turn to before the government takes this measure of cutting the hours for employees. Certainly a lot of people are worried."