Pago Pago, AMERICAN SAMOA — The Lolo Administration has identified a funding source for the construction of a “new cement perimeter wall” around the Territorial Correctional Facility (TCF) and a seawall from Aua village going east along the coastline of Tutuila.

According to an administration bill introduced in the Fono last Thursday, at the start of the Special Session, funding comes from the “surpluses” of fiscal years 2017 and 2018 and ASG’s dividends received in 2017 from the American Samoa Hawaii Cable (ASH-Cable) LLC, which is 33% owned by ASG.

The bill’s preamble states that the “current state of security at TCF needs updating”. Additionally, the “effects of climate change are evident in the erosion of our coastline, therefore a seawall needs to be constructed to “help prevent the erosion of our coastline.”

ASG Treasurer Ueligitone Tonumaipe’a and ASG Office of Budget and Planning director Catherine Saelua appeared last Friday morning before the Senate Budget and Appropriations Committee to answer questions.

Budget Office director Catherine Saelua and ASG Treasurer Ueligitone Tonumaipe’a testifying last Friday morning before the Senate Budget and Appropriations Committee. [photo: FS]

The main question focused on an explanation of the “surpluses” to which Tonumaipe’a explained that the FY 2017 surplus totaled $786,300 — following the independent audit of ASG finances of that fiscal year.

For FY 2018, the surplus — after the audit was completed in June this year — is $3.1 million which includes the $2.6 million that ASG received as its share under the multi-million settlement payment by StarKist Co., and StarKist Samoa for violating pollution laws in territorial waters. The federal court in Pittsburgh, Pennsylvania approved the settlement in March  2018.

Tonumaipe’a reminded the committee that the Fono approved — and the governor signed into law late last year — legislation appropriating the spending of the $2.6 million. (See Samoa News July 24, 2018 online edition for details of the projects.)

The balance leftover, or surplus, for FYs 2017 and 2018 is just over $1.1 million, the treasurer said, adding that the ASH Cable dividend of $550,000 was received by ASG in 2017. He said the Attorney General’s Office is working on finding more dividends payments to ASG.

When asked by the committee if the left over unused surplus and the dividend money can fund the two projects proposed by the governor, the treasurer said, the shortfall is about $173,000 and the government will work on securing funds to cover it.

Sen. Satele Galu Satele Sr., suggested that the money can be used to pay overtime and increments for ASG employees, who are paid by local funds. But other senators noted that the coastline between Aua going eastward faces serious erosion and a seawall is urgently needed. Furthermore, work has already started on the new security wall at TCF.

The Senate is going through the final approval process of the bill, before it is sent to the House for their consideration. The House has its own version of the bill in committee for a hearing.

TAX REFUNDS

Sen. Logoai Siaki Logoai questioned Tonumaipe’a on the status of tax refund checks — some people are still waiting for theirs — when ASG is already in the new FY 2020 which began Oct. 1st.

 Tonumaipe’a explained that the only pending taxes being processed are for those who just filed their  2018 taxes and those who had errors in their tax filings.

Logoai argued that there are still people waiting for their tax refunds, and suggested the government set up a special account to pay tax refunds in an expeditious manner.

Tax refund checks include both the local and the Additional Child Tax Credit (ACTC), funded by the US Internal Revenue Service.