14 Dec 2007

American Samoa government asked to pay outstanding debts

10:44 am on 14 December 2007

The US General Services Administration has suspended all orders from the American Samoa government because of non payment of outstanding bills.

The GSA is the agency of the federal government which handles procurement and disposes of surplus federal property.

The territory's government has ordered school buses, police vehicles, electrical and plumbing supplies and a host of other goods from the GSA as the prices are less than half market prices.

Sources at Treasury and the Office of Procurement say that the administration owes GSA more than $300,000.

GSA advised the Office of Procurement last month that it will no longer honor government orders until it clears the unpaid bills.