Fono Briefs

Pago Pago, AMERICAN SAMOA — The Fono continues its Joint Budget Hearings and in addition, members of the Senate heard from the nominee for Territorial Auditor in a confirmation hearing last week Friday.

ASTCA BUDGET HEARING

The American Samoa Telecommunications Authority has not been able to sell any of the capacity of the Hawaiki Cable, in which the government has invested $30 million. During ASTCA’s budget hearing on Wednesday, Faipule Larry Sanitoa asked CEO Chuck Leota if any of the 200 gigabytes made available by the Hawaiki Cable has been sold.

“Only 30 gigs are being used by ASTCA, but we haven’t been able to sell anything outside of American Samoa. We’ve also sent proposals to try and sell the capacity to neighboring islands, but we haven’t had any success,” said ASTCA CEO Leota. He also stated that they are also pursuing another cable between the two Samoa, which would channel capacity to other islands. 

THE ASTCA CEO also told Fono members that the telephone company applied for federal funding for this project, but was unsuccessful, and are now pursuing other sources.

Faipule Sanitoa urged that “ASTCA should continue to do its best to get a return on the $30 million invested in the Hawaiki Cable.” He further pointed out that the cable will be obsolete in 10 years, so it’s important that the government make some money from this investment, with Senator Malaepule Saite Moliga agreeing with Sanitoa’s sentiments.  

Senate President Tuaolo Manaia Fruean then asked the ASTCA CEO if they were working on compiling a new phonebook directory. 

“We are close to concluding a lawsuit with the publisher of the previous directory and a new phone book is being planned.

“In the meantime, ASTCA 411 service for phone numbers is in operation.”

Tuaolo then asked Leota if ASTCA charges 50 cents per call request for a phone number, to which he replied a resounding “yes”.

Other concerns raised were dropped cell calls, wages for staff in Manu’a, which are below the government minimum wage, and the lack of per diem given to employees in Manu’a when they travel to Tutuila for work purposes.

For FY2024, ASTCA’s proposed budget is $26 million, up from $24 million, for FY2023. The number of employees jumped from 184 to 199.

The breakdown of the ASTCA budget: Personnel – $5.7 million; Materials and Supplies – $4.3 million; Equipment — $4.3 million; Contractual Services  – $3.1 million; Travel – $291,000, All Others – $8,054,000.

According to ASTCA’s Profit and Loss statement for FY2023, revenues totaled $26 million and expenses came to the exact amount of revenues — $26 million.

OFFICE OF PROPERTY MANAGEMENT BUDGET

For the past three years, ASG has not conducted a full inventory of its assets. Poleen Asalele, Director of the Office of Property Management told the Fono they don’t have enough funding to conduct a complete inventory of ASG’s belongings. THE OPM is charged with the inventory of land, equipment, vehicles and other assets of the government.

“The office budget for travel in our department is $0, so we unfortunately can’t go to Manu’a or Aunuu to record assets of the government over there,” the OPM director said.

The proposed FY2024 budget for the Office of Property Management is $600,000, up from $486,000 from the current FY2023. $585,000 is allocated for personnel salaries; $2,000 allocated for Materials and Supplies; Expenses for All Others is listed at $13,000 and $0 dollars is the amount allocated for Travel and Equipment.

“There was a 28% increase in personnel for the new year, yet the office isn’t able to carry out its responsibility of inventorying the government’s assets?” queried Senator Togiola Tulafono.

In response, Asalele stated that they were given a budget ceiling, and have to unfortunately work around it. She also added that five of the eighteen employees in her department's budget were paid by the Department of Education, but will now be paid under the OPM’s payroll in the coming year.

Asalele noted that they were able to complete a vehicle and equipment inventory for Tutuila this year.

Senator Fonoti Tafaifa, Faipule Vesiai Samuelu Poyer and House Vice Speaker Fetui Fetu, Jr. did point out that ASG departments are purchasing expensive vehicles, and they believe some of these vehicles are surveyed prematurely.

“Perhaps they just need parts but they are taken to an auto shop where they sit idle for many months, or years, before they are surveyed,” said Vesiai.

“In a recent auction conducted by OPM, a few months ago, I saw various vehicles that I thought were still in good condition, and shortly after the auction, I saw Indian mechanics driving vehicles that had been auctioned,” said Vesiai.

He concluded, saying that “departments are purchasing top of the line vehicles, some costing $75,000 and up, and those vehicles should not be surveyed until they are beyond use.”

TERRITORIAL AUDITOR CONFIRMATION 

Michael Edmonds appeared for his confirmation hearing as the new Territorial Auditor before the Senate Budget and Appropriations Committee, Friday, Sept. 1, 2023, and was later approved by an 11-1 vote. His confirmation hearing in the House was on Wednesday, Aug. 6, 2023 where he received an unanimous vote.

When asked by Fono members what makes him qualified to be the new Territorial Auditor, Edmonds stated that his “personal ethics, trust, respect and leadership” would make him stand out.

“My ethics would have to be, and are, beyond reproach,” Edmonds said. 

“Someone in a visible position, such as a territorial auditor, needs to model the highest ethical content at all times, and for me, that means being open and clear in my communication with staff, those charged with running the government, and to you as legislators.” 

Edmonds has 40 years of experience in the auditing profession in California and is not new to American Samoa, having worked for the Territorial Audit Office from 2012 to 2013. Edmonds left the Territory after one year because his wife, who was a speech therapist at LBJ Hospital, fell sick and needed care, which wasn’t available in American Samoa. 

Edmonds told Fono members that he will be working mainly from his home in California, and will spend 25% of his time here. “My position as Territorial Auditor is to direct and supervise audits by staff,” whom he said are capable of performing the responsibilities of the Territorial Audit Office.

Edmonds also stated that the Territorial Auditor should be completely independent and should not have any loyalties to people in government.