2 Aug 2005

American Samoa governor asks Fono to support loan for medical centre

10:24 am on 2 August 2005

American Samoa's Governor, Togiola Tulafono, has asked legislators to approve a ten million US dollar appropriation, in the form of a loan, that will provide comprehensive financial assistance for the LBJ Medical Centre.

The governor said the loan would come from the ASG retirement Fund and the Retirement Fund Board has agreed in principle to granting the loan.

The governor said the $10 million would get the hospital through to the end of the fiscal year and would retire all LBJ debts and there should be money left over to be used as reserves.

The hospital's board told the Senate two months ago, that the hospital has a long standing deficit of $13 million, while a $2.6 million shortfall is expected at the end of the current fiscal year, which closes on Sept. 30, 2005.