6 Jun 2013

American Samoa court rules amid board row

3:48 pm on 6 June 2013

The American Samoa chief justice, Michael Kruse, has ordered the government's new nominees to the board of trustees of the public Employees Retirement Fund board not to get involved in the management of the 200 million US dollar fund until they are confirmed by the Fono.

The decision comes after a hearing in the High Court on the government's motion to dismiss a lawsuit filed by current trustees of the fund against the governor, Lolo Matalasi Moliga.

The trustees say Lolo didn't consult them before nominating new board members in February, despite a legal requirement to do so.

The trustees want the governor to rescind his nominations until he has consulted the board.

They have asked the court to declare that they are the proper trustees of the fund and invalidate the governor's nominees, who will be subject to Fono confirmation next month.