Pago Pago, AMERICAN SAMOA — The American Samoa Government (ASG) is paying over $80,000 every month to families in Tutuila and Manu’a for land leases to ASG for government purposes, according to a report distributed in the House Chamber last week during the House Government Operation Committee hearing with the Chief Procurement Officer (CPO) Ti’amasunu Dr. Mikaele Etuale.
Two reports were distributed to faipule before the hearing. One report is the list of ASG active leases as of Mar. 11 2021 while the other report is the updated list of active construction contracts also as of Mar. 11, 2021.
For the list of active leases, ASG is paying over $23,000 for family land leases in Manu’a every month while over $58,000 is being paid to families for land leases in Tutuila.
Manu’a #1 Rep. Alumamalu Filoiali’i Ale told the hearing that he heard reports about lease payments being paid in advance. He wanted to know if this is true and whether this practice violates local statutes.
According to the CPO, this is one of the reasons why people were lined up at the governor’s office, seeking an opportunity to meet with the Governor to request their lease payment for the whole year to be paid in advance.
Ti’amasunu explained to the committee that the practice that has been going on for years — to issue land lease payments in advance is a violation of local laws. Ti’amasunu explained that receiving land lease payments in advance becomes a big problem when the Sa’o passes away and the new Sa’o would find out the lease payment had been paid in advance to the late Sa’o.
The office’s response is to inform the family of the new Sa’o that it’s not the government’s fault. It’s because the late Sa’o’s took the payment in advance — that’s the problem.
CONSTRUCTION CONTRACTS
There is $76.2 million worth of construction projects on-going in American Samoa, currently. Reports revealed that of that amount, all but $15.4 million was awarded to a single construction company — Paramount Builders.
Ti’amasunu answered committee questions regarding the awarding of contracts, the progress of projects some of which had groundbreaking ceremonies last year and the justification for sole-sourcing of road repair projects.
Fofo Faipule Andra Samoa stated she had tallied the active projects and out of the total worth of $76.2 million, one company, Paramount Builders has been awarded $61.8 million in projects leaving just $15.4 million for the rest of the construction businesses.
“Are all these projects by Paramount ongoing?” asked Rep. Samoa.
The CPO answered “yes.”
Samoa recalled that for the Afono road project, the Director of Public Works Faleosina Voigt had testified that the job had been sole-sourced to Paramount Builders for $1.7 million. She said Paramount had materials ready for the Afono road left over from the LBJ Hospital road project.
The CPO explained that it’s true the job is being sole-sourced to Paramount but the contract has not been completed. Procurement is waiting for the back-up documents to draw up the construction contract for the Afono road.
Rep. Manavaalofa Tutuila Manase asked about the status of the Taputimu Loop road, which had a groundbreaking last year.
According to the CPO, the Source Evaluation Board (SEB) has submitted a recommendation and he needed to review the bid files and documentation before making a decision on a winning bid.
Faipule Larry Sanitoa said that there are other projects that are now questioned by the Inspector General due to the funding that is being used to fund some of these projects. For example he mentioned the $1.5 million from the COVID-19 Grant that went to purchase the Pago Pago Vessel from Paramount.
Several faipule echoed Sanitoa’s statement saying that some of the funding from the COVID-19 Grant has been used in construction projects not related to the COVID-19 pandemic.
BACKGROUND
A report from the Department of Treasury on COVID-19 related funding received and spent by the American Samoa Government under the Cares Act was distributed in the House of Representatives last week.
The COVID-19 Grant Accounts report lists all funds awarded to different agencies and departments as of January FY 27, 2021. It also details how much has been spent, the balance of funding and encumbrances. Here is a breakdown of how the money was spent:
• ¥ Government Relief COVID-19 Operations: $24.9 million. (There is no breakdown of how this money was spent but a previous Treasury report shows it includes the cost of the quarantine sites, supplies, meals and related costs at the DWYA Center, VA Building, Fatuoaiga and Kanana Fou. It also includes the funding for Fono offices and other items.)
• ¥ MV Pago Pago: $2.5 million
• ¥ High Court demolition and construction: $2 million
• ¥ Administrative Code Revisions: $400,000
• ¥ Marine Resources Building: $700,000
• ¥ E-rate Center Hub Building: $1 million
• ¥ Tourism Industry Revival Program: $300,000
• ¥ DOE Centralized Administration Building: $2 million
• ¥ ASCC Remote Learning Project: $800,000
• ¥ Governor’s Adopt-a-School Project: $500,000.
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