Showing posts with label ASG Finances. Show all posts
Showing posts with label ASG Finances. Show all posts

Wednesday

The House is Finally Waking Up: Subpoenas, Missing Millions, and Executive Branch Power Trips

 

Editorial cartoon poster inside the American Samoa House of Representatives showing lawmakers demanding subpoenas for the missing $10 million ARPA investment while an official stamps ASTCA telecom budget documents as confidential.

If you thought the Senate was the only ones getting heated about the $10 million ARPA fund mystery, think again. The House of Representatives has officially entered the chat, and they’ve brought out the heavy machinery: subpoenas.

It turns out Representatives are getting tired of finding out where public funds go by reading local gossip, and they’re starting to ask the kind of uncomfortable questions that make government accountants sweat.

"Subpoena Them or We’re Just Talking to the Wall"

Representative Faimealelei Anthony Allen didn’t mince words on the House floor. He pointed out that while everyone knows the administration shipped off the ARPA interest funds into some mystery investment, the only way the Fono is ever going to see actual proof—or a paper trail—is to slap the administration with a formal subpoena.

Representative Fagaima Larry Sanitoa brought up a painfully obvious point: wasn’t this interest money supposed to be used to pay off ASG’s mountain of debt to the Retirement Fund? You know, the money meant to make sure local retirees actually get paid?

Instead, the money took a detour to Kansas.

Vice Speaker Fetui Fetu backed Allen up with a classic reality check: if lawmakers just sit around complaining without taking real action, their words are completely worthless. Fetui made it clear that if the Governor really invested $10 million behind the Fono's back, it’s time for a full-scale investigation.

Because last time anyone checked, American Samoa isn’t run by a king. The executive branch doesn't just get to treat public tax dollars like a personal slush fund without legislative approval.

Meanwhile over at ASTCA: "That’s Confidential Information"

As if the missing $10 million wasn't enough drama for one day, the House also took a hard look at the American Samoa Telecommunications Authority (ASTCA).

Apparently, the ASTCA Board was quietly dissolved without anyone bothering to tell the Fono. When lawmakers tried to dig into ASTCA’s FY2027 budget submission, ASTCA essentially handed them a redacted document and claimed certain financial details were "confidential."

Representative Fagaima wasn't having any of it. He reminded ASTCA that they are a public entity, not a secret private corporation, and they don't get to decide what the Fono is allowed to see.

His solution? It's high time to officially establish ASTCA by statute so the executive branch stops running it like an off-the-books side project while keeping lawmakers completely in the dark.

The Bottom Line

Between mystery investments in Kansas and telecom agencies hiding behind "confidentiality" stamps, the House is finally drawing a line in the sand.

Will the subpoenas actually fly? Will anyone explain where the ARPA interest went? Stay tuned—the budget hearings this week are going to be wild.

ASG Sent $10 Million to a Firm in Kansas for a "Double Your Money" Deal, and Guess What Happened?

 

A roadside billboard mural in American Samoa illustrating a giant bag of $10 million in ARPA funds linked to a Kansas investment firm tree labeled McKinley Beech Tree.

If anyone in the American Samoa Government ever sends you an email offering a strategy to turn $10 million into $20 million in under six weeks, do not reply. Tell them to change their passwords.

Unless, of course, that email came directly from the Governor’s office—in which case, congrats, you’ve just witnessed how $10 million of federal ARPA funds went on an extended vacation to Kansas and forgot to write home.

The Math That Made Everyone’s Jaws Drop

Here’s the setup: Back in March, the ASG had around $11 million sitting peacefully in an ARPA interest account at Zions Bank. Enter Governor Pula’ali’i Nikolao Pula, who issued a direct instruction: wire $10 million over to a firm out in Kansas called "McKinley Beech Tree". The officially listed goal? "Airport Infrastructure".

Now, according to testimony from Acting Treasurer Carri-Lee Magalei-Tulafono during Tuesday’s Senate Government Operations hearing, the verbal timeline pitched to her went something like this:

  • March: Wire $10,000,000 to Kansas.

  • Late April / Early May: Receive $10,000,000 back… PLUS an extra $10,000,000 bonus.

A 100% return in under two months? That isn’t high-yield institutional investing; that’s the kind of return usually promised by a guy in a YouTube ad claiming he trades crypto from a mansion in Dubai.

Fast forward to August 31st, and total returns logged so far? Exactly $0.00.

"Who Exactly Authorized This?"

During the hearing, Senate President Tuaolo Manaia Fruean and Committee Chair Senator Togiola Tulafono tried to trace the paper trail.

Was there a pitch deck? No. A written contract outlining risk parameters and collateral? Nope. Did anyone check with the Attorney General before signing the transfer? Negative.

The entire paper trail for a ten-million-dollar wire essentially boils down to an email sent on March 16th where the Governor authorized the transfer, copying a guy named Brett Butler.

Who is Brett Butler, you ask? Good question. He’s the "Executive Treasury Specialist" who didn’t pass Fono confirmation, yet was apparently the person feeding the details about the "double-your-money by May" return target.

When Senator Togiola asked how Magalei-Tulafono ended up in the Acting Treasurer chair to sign the transfer, she admitted she didn't even want the job in the first place—Butler had simply nominated her to the Governor as a temporary stand-in.

Where Was That Money Supposed to Go?

Remember when the public was told that interest from federal ARPA funds would be used to pay off ASG’s massive debt to the Retirement Fund? The Senate remembers.

Instead of settling debts at home, $10 million was shipped off to middle-America under the guise of funding "airport infrastructure," leaving a lonely $1 million lingering in the bank account.

The Senate is now hauling in Brett Butler, alongside the Directors of ARPA and Medicaid, to explain where the money actually is and why basic financial oversight was treated like an optional setting.

Until then, if someone contacts you promising to double your savings in 45 days, remind yourself: even government treasuries fall for it sometimes.