Butler says new tax computer system urgently needed

Pago Pago, AMERICAN SAMOA — After falling short of confirmation in the House last Tuesday, Brett Butler was unanimously approved by the Senate on Thursday to serve as Treasurer of the American Samoa Government. The vote was 16–0, with Senators Tuana'itau Malaki Togiola and Alo Dr. Paul Stevenson absent.

The confirmation hearing was conducted by Senator Utu Sila Poasa, Chairman of the Senate Budget and Appropriations Committee. In his opening remarks, Senator Utu reflected on Butler’s career, noting that he had worked closely with him during Butler’s tenure as General Manager of StarKist Samoa — the first local to hold that position.

Senator Utu highlighted Butler’s rise through the ranks at the cannery, where he held several roles before becoming General Manager at a relatively young age. He emphasized that Butler’s career path shows the kind of leadership and dedication needed in the Territory.

“American Samoa needs sons and daughters who have attained their education to return home and serve,” Senator Utu stated, highlighting the importance of Butler’s appointment as a model of local talent contributing to the government and community.

The committee chairman opened the floor for questions. Senator Togiola T.A. Tulafono was first, questioning the Acting Treasurer for more than 20 minutes.

He asked Butler for his views on how the Treasury Department is handling its duties. Togiola pressed further, asking if Butler had seen any issues that should be brought to the Fono’s attention — especially to improve communication between the branches of government and to ensure proper collection, safeguarding, and use of public funds.

Butler noted that he has served as Acting Treasurer for four months and has not yet reviewed all the data. However, he said there are steps that can be taken to strengthen the government’s financial position.

One initiative he hopes to introduce is training for Treasury employees, giving them the skills to question figures and respond to them, rather than simply accepting data at face value.

He stressed that one of his main responsibilities as Treasurer is to ensure accurate financial information is available — not only within the department but also to leaders in both the executive and legislative branches.

“There are many assumptions made by our leaders, but the facts aren’t always there to support them,” Butler said. “My job is to provide those facts so our leaders can make sound decisions and set the right course.”

The Acting Treasurer stated that he is implementing the purchase of a new tax system for the Tax Office to replace the current one, which has been in use for the last 30 years.

"We have a system that is 30 years old that is not being supported, and the data we receive in the Tax Office is manipulated, and that's not fair to our taxpayers or to the people here in the Territory," Butler stated.

Senator Togiola pressed Butler to clarify his statement that data from the Tax Office is manipulated.

Butler explained that the Tax Office relies on a 30-year-old AS-400 system known as the Moana System. The software company that created it has gone out of business, leaving Treasury without upgrades or support. He warned that the outdated system could fail at any time.

The Acting Treasurer outlined two main sources of government revenue: personal and corporate income taxes collected by the Tax Office, and excise taxes collected by Customs at the ports of entry. While the Tax Office continues to use the aging AS-400 system, Customs still records its data manually in spreadsheets.

Butler said Treasury is planning to acquire a modern system that will track all imports into the Territory. This would allow excise tax figures to align more accurately with cargo manifest information.

Regarding the Tax Office, Treasury has acquired a new tax system from Governful, a company based in Las Vegas. Butler noted that the same system is already in use in the Commonwealth of the Northern Mariana Islands (CNMI), Guam, and other territories.

Senator Togiola asked whether Governor Pulaalii Nikolao Pula had any role in providing the tax system to the CNMI before becoming Governor.

Butler explained that Pulaalii became familiar with the company during his time with the federal government, but emphasized that the Governor was not involved in negotiations. He said the decision was made by Treasury and the Tax Office, with company representatives working directly with local staff and receiving feedback on the system.

Senator Togiola pressed Butler on whether Governor Pulaalii had recommended acquiring the Governful tax system. Butler reiterated that the Governor had not made any recommendation, explaining that he only knew the company’s owners from his time with the federal government.

"You're aware of the law which requires the acquisition of these types of systems to be bid out, aren't you?" Togiola asked.

"I am aware, sir," Butler replied.

"Then why are you not following the Procurement Law?" Togiola pressed.

Butler acknowledged the law but explained that Treasury had sought quotes from two companies — One Solution at $6 million and Governful at $1.5 million — because of the urgent risk of failure with the aging Moana System.

"So instead of following the Procurement Law and bidding out the purchase contract for a new tax system, you invited two companies to submit quotes," Togiola pressed relentlessly.

Butler clarified that they had discussed the matter with Procurement management, and they had stressed the sensitivity of the situation the Tax Office was in with the possibility of the current Moana System failing at any time. He reiterated that time was of the essence and they had to make a move to prevent jepordizing government if a system failure did occur.

Togiola countered that the bidding process could still be expedited in emergencies. Butler agreed but stressed that Treasury was in a desperate situation, and the significant cost difference between the two quotes made Governful the obvious choice. He added that Procurement management had agreed with Treasury’s reasoning, given the sensitivity of the situation.

The $1.5 million price covers training, implementation of software, dealing with IRS, and bringing the system live. For the second and third years, ASG will pay $300,000 per year for system support and licensing. The $1.5 million cost is funded by ARPA.

Senators mostly voiced their approval of Butler’s appointment, confident of his qualifications to serve as Treasurer.

One senator did bring up Butler’s lack of fluency in the Samoan language.

Senator Muagututia Tauoa urged Butler to learn Samoan so he could respond to senators in the native language. He advised Butler not to be afraid, to which Butler replied, “I fear no one but God, sir.” Tauoa also asked him to prioritize speeding up tax refunds and avoiding delays like those seen last year.

Senate President Tuaolo Manaia Fruean appealed to his colleagues to place their confidence in Butler. “Butler is my son; he is from Pago Pago,” he said, adding that if Butler were not confirmed, his extended family would think poorly of him. Fruean reminded Butler that the role would not be easy and encouraged him to seek advice from senators whenever needed.

With Butler clearing Senate confirmation, his appointment now requires approval from the House of Representatives. The timing of a second House vote will be determined by the Speaker of the House.

BACKGROUND

The unaudited report for the FY2026 1st quarter of government revenue and expenses Butler has presented to the Fono, indicates business tax collections are integral for ASG citing a surplus for the period.