27 Aug 2008

American Samoa Governor asks Fono for funds for development bank

9:44 am on 27 August 2008

American Samoa's Governor, Togiola Tulafono, has sent a bill to the Fono which would appropriate $1 million from the income tax reserve account for the Development Bank of American Samoa.

The money is to be used for business and home loans.

The Fono approved a similar bill in the last Fono session.

However the governor vetoed it, due to problems with the language of the bill, that he said would make it difficult to designate the types of business and corporate fees that would feed the fund.

Under the governor's bill as soon as the income tax reserve account is fully funded, proceeds from corporate partnership, joint venture, limited liability company or other business entity income taxes will be remitted to the Development Bank at the end of each calendar quarter.

All income from investments in the Economic Development Fund will be credited to the account and will be available for reinvestment.