The chairman of the Americian Samoa Senate Health Committee, Galeai Tuufuli, has declared the agreement between the government and the LBJ Hospital for a three-million US dollar loan to keep the hospital afloat is unenforceable.
He says the agreement is contrary to the law which authorised the loan from the Workmens Compensation Fund.
Galeai says the bill provides that Treasury pay the three million dollars directly as a lump sum to the LBJ Hospital.
But the government is paying the money in instalments.
The hospital has received half and the balance is to be paid once the LBJ has satisfied the conditons of the agreement which required cuts to the hours of work of employees and the closure of some clinics.
But Senator Galea'i says these conditions are contrary to the Fono's intention to give emergency help to the hospital.