In American Samoa Garment firm shuts down

PAGO PAGO, American Samoa (PIDP/CPIS) — Daewoosa Samoa’s court appointed receiver, Jim Fones, Friday shut down production until the garment factory’s financial condition improves, according to Ben Solaita, appointed by Fones as general manager.

“There is no money to operate the company,” said Solaita. “And we do not have a prediction on when production will return to normal, unless there is an immediate cash infusion.”

Appointed as Daewoosa Samoa’s receiver on January12th, Fones gave the court some unsettling news last week. Daewoosa Samoa has only $520 in the bank and an immediately cash infusion of $100,000 is needed in order for the company to remain operating.

“We did not want to prolong this issue and allow people to continue to work without any money to pay them, which is giving them false hope,” Solaita added. “But we are still here trying to help out Daewoosa.”

With production halted, the 85 Samoans workers at the garment factory are without work.

Former Daewoosa Samoa assistant production manager Nuuuli Ioane said on Monday that some of the Samoan workers, including Vietnamese workers, were crying. “They all wanted to work,” said Ioane.

At the time of the closure, Ioane said they were working on an order to be shipped out on Friday, that if completed and paid for in full it would have brought an estimated $35,000 to the company.

The more than 200 Vietnamese and Chinese workers at the factory will still be housed at the company’s compound.

“Getting the money to feed all foreign workers staying at the compound, is something we are trying to work on right now,” explained Solaita.

Solaita estimates that they need $700 to $800 to purchase food to provide the three necessary meals a day for all workers.

The company still has other financial obligations, such as the alleged back wages it owes to foreign workers, a matter now being heard in court.

Other obligations include outstanding land lease payments owed to the government — estimated to be more than $150,000 — more than $7,000 in outstanding telephone bills with the American Samoa Telecommunication Authority and an outstanding electric bill.

Solaita said that these are some of the other financial matters that the receiver will have to help resolved.