Fono hearings draw attention to ‘numbers’ that don’t seem to balance

Pago Pago, AMERICAN SAMOA — The joint Fono hearings for the FY 2026 government budget began on Wednesday, Sept. 10, 2025 with Treasurer Mr. Donald “Don” Kruse and Budget Director Mrs. Tauaisafune “Taua” Taifane taking center stage for questions about the budget document and its numbers from the lawmakers.

The hearing ended with lawmakers asked for the hearing to be reconvened the next day with several reports corrected as well as new ones added for their perusal.

The current reports they want are business payables, Zion Bank interest income, August revenue collections, and a correction of recording of earmarked/ Enterprise Funds.

Lawmakers called into question the Budget and Treasury’s reports, speaking of numbers that didn’t add up, numbers that were missing — conveying a basic disbelief with the reports of surpluses and revenue reporting.

On Thursday, Sept. 11th, when the joint hearings were reconvened, it would seem not all reports were received. However, the decision was to push the general budget review back to a later date, while going forward with scheduled department joint budget hearings.

The first hearings were held for the Budget Office and the Treasury on Thursday.

SEPT 10TH JOINT HEARING

Faipule Fagaima Larry Sanitoa began the Fono’s queries into the government’s FY 2026 budget asking for a report of the government’s payables — he said a request had been made on Monday this week. Kruse responded that he did not have that available right now.

The faipule then asked what the ASG plan was to pay the money it owes the Retirement Fund in Employee Contributions. He estimated it at close to $15Mil. Kruse’s reply seemed to indicate that the government was looking at “collections” as their ‘plan’, adding that they are improving collections through training of personnel and upgrading their computer systems, making their collections footprint more digital.

Fagaima responded that it looks like there is no plan to pay the Retirement Fund its money and yet its been 8 months since the issue came to light.

He then brought up the Interest Income listed in the Budget Summary document under Proposed Revenue Income. Pointing out that $7.2 Mil is listed for FY26, while $2.1Mil was listed in FY25. He asked from where the $5Mil in additional interest was coming?

After a back & forth, in which the Treasurer said he didn’t know where Fagaima was getting his information from — saying the document wasn’t prepared by his office, Kruse then noted that maybe the interest income was that from ARPA funds that were currently deposited in the Zion Bank.

To which Fagaima replied that there have been drawdowns on ARPA funds and that the interest numbers don’t ‘work’. However, Kruse insisted that drawdown has only been 25%, with 75% remaining, with projected interest income still valid.

Fagaima moved his focus to the surplus that ASG is reporting, casting doubts on the reported amount. Kruse replied that up to July 2025 at total of $3.5Mil is being reported, although there is an overall shortfall. He pointed to savings because of their cost containment actions.

Senate President Tuaolo M. Fruean spoke of the payment of ASG Retirement Fund monies owed by ASG in terms of questions about the interest at Zion Bank. He asked Kruse what was his plan? Angrily pointing out that the Zion interest money should be used to pay the Retirement fund. Kruse noted that ARPA has a say about the money and interest. Tuaolo quicker replied that the interest belongs to us (ASG) , not ARPA.

In the budget hearing held the next day, Sept. 11th, while not focused on the reports they had demanded, Tuaolo did ask Kruse about the Zion interest revenue. Kruse replied that it was $14 million. Tuaolo asked what it was going to be used for; to which Kruse said the Governor has the final say. Tuaolo continued that if they had not gotten the amount out of Kruse, he thinks they would not have said anything to the Fono, and wouldn’t this be the right time to pay the Retirement monies owed. Kruse said it’s for the governor to say. Tuaolo said his concern is about protecting the ‘people’.

Sen. Magalei Logovi’i brought up what he believes is a mistake in the calculation of revenues and expenses projected budget. He noted that they have put all money collected into ‘Operations”, which includes ‘earmark’ funding. He told Kruse, you must minus the $114Mil from projected revenues, as they are already committed or earmarked.

Sen. Togiola Tulafono noted that the way the way the revenue/ collections is being reported to them (the Fono) — the numbers don’t balance. He also pointed to earmarks being reported as part of ASG operations.

Togiola then asked that several reports be presented by the Treasurer in order for the lawmakers to better understand the budget. Kruse replied he had no problem with that, and would await their ‘letter’. To which Togiola replied that if Kruse wants to formalize the request then it should be done by subpoena. Kruse in turn, seemed to ‘settle’ and said he was responding to the budget being rejected, as lawmakers were closing the hearing.

He was told that no it was not a rejection of the budget, but rather lawmakers wanted to reconvene tomorrow (Sept 11), with him bringing the additional information they wanted to go forward with the budget review.

The hearing, which was acrimonious at times, ended with misunderstandings between the Treasurer and the lawmakers laid to rest.

The next day, the matter seemed to be settled to be reviewed at a later date, behind closed doors.