7 Aug 2018

Samoan govt bails out CSL over cable debt

6:01 pm on 7 August 2018

The Samoan government has stepped in to bail out the country's internet service provider, paying a debt it owed to American Samoan cable company ASH.

Tui Samoa cable brought ashore

Tui Samoa cable brought ashore Photo: RNZI Autagavaia Tipi Autagavaia

The Prime Minister Tuilaepa Sailele Malielegaoi told KHJ News it was "common sense" for the government to pay CSL's debt.

The debt, understood to be worth millions of US dollars, was incurred by CSL for using ASH's cable linking the two Samoas and beyond.

The Samoan government has now taken over the cable lease.

In a letter dated October 2017, the Ministry of Finance instructed government departments and corporations to make all payments for CSL internet services directly to the ministry.

Private CSL clients were not included in the directive.