13 Sep 2004

Shareholders allege takeover of Rainmaker Hotel by American Samoa's government illegal

7:30 am on 13 September 2004

A group of shareholders in American Samoa is preparing to sue the government for the alleged unlawful takeover of a hotel.

The minority shareholders' Ad Hoc Committee alleges the state takeover of the Rainmaker Hotel led to what it calls gross mismanagement and unexplainable losses.

The committee chairman, Senator Te'o Fuavai, says legal action seems to be the best way for the shareholders to regain their losses.

The Samoa News quotes a source as saying that the group won't sue for less than 3-hundred million US dollars.

Senator Fuavai says a special meeting of the shareholders will determine the final amount of the claim.