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Governor vetoes funding for Development Bank
Friday,
May 2, 2008
The Development Bank of American Samoa will not get a boost in funding from the Income Tax Reserve Account.
Governor Togiola Tulafono has vetoed the bill that would have appropriated $1 million from the account to the Development Bank for business loans. The governor stated in his message to Fono leaders, he applauds and appreciates the Fono's consideration of the bank’s needs. However he did not feel combining the collection of these funds under the Income Tax Reserve Fund is appropriate. The governor felts that it will only result in confusion and difficulty in accounting the tax reserve monies. He also noted that ASG has contingent liability in excess of $1 million of potential tax refunds to at least one corporation.
He said we need to have the reserve fund fully funded in contemplation of this liability. The governor said he is supportive of making funds available to the Development Bank for housing and business loans and he’s in favor of creating a separate funding account to be directed to DBAS and funded form the same sources as the tax reserve fund. But only after the tax reserve fund is fully funded. E was not in favor of using the funds for just business loans only, but for the bank to be given flexibility to use the funds for home loans as well.
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