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Governor proposes bill to forgive repayment for LBJ loan
Monday,
May 5, 2008
Governor Togiola says he will be sending to the Fono this week a bill to forgive the $5 million, which ASG loaned to the LBJ Hospital a few years ago.
The governor said on his weekly radio program that the administration was drafting a bill, which would waive repayment of the $5 million that was used to settle old debts for the hospital. The governor was responding to a question form a caller on the $9 million Medicare debt. The female caller wanted to know who was responsible for the debt and where that money was spent. The governor said there was no evidence of wrongdoing in this case. He said the money was spent on LBJ operations.
He said the hospital proposed revenue measures to pay the Medicare debt including raising the excise tax on imports for resale from 5 to 10%. The governor said he rejected that idea because it would be burden on residents. Chairman of the Hospital Authority Board Moananu Va told KHJ News last week that the governor is leaning towards increasing the tax on water and juice. The governor said the hospital cannot escape from paying the Medicare debt, but other than forgiving the $5 million loan, he did not say how the repayments would be raised. LBJ has been paying $211,000 a month towards the Medicare bill.
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