7 Oct 2003

American Samoa government pleased with budget position

5:05 pm on 7 October 2003

The governor of American Samoa, Togiola Tulafono, says the government did so well at the end of the last fiscal year that it didn't need to use any of the 16 million US dollars it received from a lawsuit against Affiliated FM insurance.

The government had won its battle against the company earlkier this year when a California court awarded American Samoa 30 million dollars.

The government had been suing Affiliated for a decade, contending that the insurer failed to honour its commitments after Cyclone Val struck in 1991.

The governor has thanked his cabinet for achieving a balanced budget and called for continued restraint in the new fiscal year which began last week.