ASEDA bill mandates key govt offices must serve on its board

Pago Pago, AMERICN SAMOA — A bill mandating that key government officials serve on the Board of Directors of the American Samoa Economic Development Authority (ASEDA) was the focus of discussion during a hearing held Monday morning by the Senate Budget and Appropriations Committee.

The measure, introduced by Senator Magalei Logovii, who also serves as vice chairman of the ASEDA board, seeks to broaden the board’s membership by requiring the inclusion of six high-ranking directors from the American Samoa Government (ASG). These are the Attorney General, Treasurer, Port Director, Director of Commerce, Director of Public Works, and the Chief Procurement Officer.

According to the bill's Preamble, "ensuring the participation of key governmental officials is vital to strengthening oversight, accountability, and inter-agency coordination in economic governance. Collaborative coordination and fiscal accountability necessitate the inclusion of officials whose duties directly impact economic governance and financial oversight."

Senator Magalei explained that these officials play pivotal roles in projects funded through ASEDA-issued bonds and bring specialized insight into their development and execution.

“These directors possess the technical expertise and intimate knowledge of our funded projects,” he said. “They’re best positioned to address investor questions and ensure transparency and continuity in project oversight.”

Senator Magalei emphasized that the bill's intent is not only to strengthen the ASEDA board, but to guard against politically motivated appointments that lack the necessary expertise. He expressed concern that the current administration attempted to replace board members with individuals unfamiliar with ASEDA’s operations and the specific projects financed through its bond programs.

Magalei further reported that the governor issued a letter terminating the board membership of directors appointed under the previous administration, a move he warned could compromise ASEDA’s ability to function. He said he advised the governor that removing those directors would leave a vacuum in leadership and critical knowledge, disrupting ASEDA’s workflow and credibility.

He emphasized the timing of the issue, noting that ASEDA hosts its annual investor call every June, a pivotal event for maintaining investor confidence and answering queries about ongoing and upcoming developments.

“These directors are not just placeholders, they're the architects and stewards of the projects,” Magalei stated. “Their absence would raise serious red flags with our investment partners.”

The ASEDA Board of Directors currently comprises nine members - seven appointed by the governor and two legislators: a senator and a House representative.

The current members are Brett Butler, attorney Terry Van Eaton, former Port Director Falenaoti Loi On-Fruean, former Commerce Director Petti Matila, former Public Works Director Faleosina Voigt, former Chief Procurement Officer Tialemasunu Mikaele Etuale, Senator Magalei Logovii, and Representative Tautoloitua Sauasetoa Ho Ching.

During testimony, Attorney General Gwen Tauiliili-Langkilde expressed support for the proposed bill’s intent. However, she questioned whether these officials should be submitted individually to the Fono for confirmation as board members, or would their board seats be granted automatically once confirmed to their primary government posts.

Chief of Staff Leonard Seumanutafa and ASEDA Office Director Blanche Lulu Barber also testified, underscoring the importance of institutional continuity and the practical advantages of having directors with direct project knowledge and financing experience serve on the board.

To address the continuity of members as raised by Senator Magalei, the AG suggested that the bill have language that stated that any of these directors can continue serving on the board until their replacement has been appointed and confirmed.

The director of the ASEDA Office, Blanche Lulu Barber stated, "Historically, as most of you may remember in 2013, the board was reconstituted under then Governor Lolo Moliga. From then up until now, the members who are on the board are the very members who are in the bill.

"As Senator Magalei has explained, it is to safeguard the integrity of the board. so that the projects, With major projects and long-term debt commitments on the line, it is crucial that subject matter experts are embedded within the board’s structure.

"As the senator has said, when we have our investor call, investors are asking specific questions to these specific members. So the importance of these members being named in the board is very critical for the continuity and for the perpetuity of the board."

Senate President Tuaolo Manaia Fruean asked if ASEDA can issue any new bonds. Barber confirmed that it can; however, the board does not want to add more debt without a clearly defined dedicated revenue source to support repayment.

The hearing concluded with senators agreeing that the Attorney General will work with Senate counsel to make revisions to the bill before it is reported back to the committee for review.