Samoa government to seize Grey family assets over debt

The Samoan government is preparing to seize assets from the prominent Grey family to pay for outstanding payments on a $US20 million loan.

The government lent the family the money to pay for repairs on the Aggie Grey's hotel in the wake of Cyclone Evan in 2012.

The Aggie Grey's hotel and bungalows in Apia were sold to Chinese investors in September last year.

But the Samoa Observer reported the new owners have become embroiled in the government loan.

Finance Minister Sili Epa Tuioti said the government is negotiating with the new owners on the payments.

Some has been paid already by the Grey family.

He said if the rest isn't paid by January, the government will start siezing assets from the Greys to pay it back.

It's unclear why the family's assets are at risk, since it no longer holds shareholdings in the business.

But the Samoa Observer obtained documents showing the land the hotel is on is still held by the Greys.

"There are many other assets involved in this loan and the government will take whatever is needed to recover it," he told the Samoa Observer.

The late Aggie Grey's son, La'auli Alan Grey, died in March, with his funeral attended by hundreds, including Prime Minister Tuila'epa Sa'ilele Malielegaoi.