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\Apparent criminal activity\ at Port cited by SIC Chair Lualemaga

Senate Investigative Committee chairman Sen. Lualemaga Faoa describes the actions of former Port Administration employees Henry Ledoux and Fanene V. So’oto as apparent “criminal activity” and requested the Executive Branch to further investigate the pair.

Ledoux, a former Port engineer left Port for the shipyard, where they needed an engineer, but later left the territory for the mainland. Fanene was a special assistant to Port Administration director, and has since retired.  Both were members of the ASG task force on the tugboat and barges project, which is being investigated by the SIC after several problems surfaced regarding money and expenditures.

Lualemaga last Thursday wrote to Gov. Togiola Tulafono requesting the governor forward to the Attorney General and the Police Commissioner, the summary of the SIC inquiry into Ledoux and Fanene  “for further investigation of what appears to be criminal activity”.

“During the course of its investigation into the Port’s acquisition and refurbishment of the tug boat Sailele and two barges in Honolulu, evidence was obtained through sworn witness testimony and from documents strongly indicating that ASG funds had been converted to the personal use of the two named employees,” Lualemaga wrote.

According to the SIC chairman, this project was funded primarily with the $20 million proceeds from the ASG Employees Retirement Fund.

LEDOUX INQUIRY

Based on the evidence, it is clear to SIC members that Ledoux leased the ASG excavator to a Hawaii company and converted the lease proceeds to his personal use, said Lualemaga, adding that copies of check stubs and checks issued by the lessee to Ledoux in the total sum of $26,070 have been obtained by the SIC, as well as Ledoux’s invoices for rental of the excavator.

In his written testimony about the excavator sent to the SIC, Ledoux confirmed he leased the equipment for $1,000 a day and money he received totaled $26,000. “This money was never intended for my personal gain but to support “myself, the crew, and necessary to purchase materials and tools for the boat (the tugboat, Sailele), car rentals for transportation, gas and food,” he said. (See Aug. 22 Samoa News edition for more details)

FANENE INQUIRY

In his letter to the governor, Lualemaga pointed out that during the course of this project, Port Administration saw it necessary to purchase certain used vehicles in Honolulu and four vehicles were delivered to Port.

“However, based upon the [SIC] evidence, it seems that Mr. Fanene V. So’oto purchased a fifth vehicle as his personal vehicle, but using ASG funds and, further, transported the vehicle to the Territory via air freight cargo at ASG expense,” he wrote.

Upon arrival of the vehicle, a statement from the car dealer was presented to Customs officials, which valued the vehicle at a significantly lower price than reflected on the purchase invoice, causing less than full excise tax to be collected, he said.

“Additionally, there was evidence connecting Mr. So’oto with the purchase of kitchen equipment and other items using ASG funds and which items were converted to his personal use,” he said.

Port Administration director Matagi Ray McMoore had testified before SIC that the issue pertaining to the car for personal use was turned over to police for an investigation but he does not know the status of that investigation.

Samoa News has since learned that DPS did complete the investigation and forwarded it to the Attorney General’s Office. What was found in the police investigation was not immediately clear.

CLOSING

“...SIC has identified these activities as possible criminal conduct by these individuals [Ledoux and Fanene], and others acting in concert with them, specifically stealing, embezzlement, conspiracy to commit stealing, conspiracy to commit embezzlement, and submission of false declarations — as the evidence separately applies to these individuals,” he said.

Lualemaga said SIC offers to provide transcripts of hearings on this matter as well as documentary evidence, to assist in a full and complete investigation into these activities.

Copies of the letter were sent to all senators, the attorney general, police commissioner and port administration.

NEW SIC HEARINGS

SIC has no plans of calling Fanene to testify under oath and has concluded its probe into this project. The next target of the SIC is the $1.2 million illegally transferred out of an ASG account at the Bank of Hawai’i, which remains frozen at the Vietnam International Bank.

The case surfaced in August last year and U.S. and Vietnamese authorities have been working to resolve it but the SIC wanted to know why this happened, and what has been done to ensure it won’t happen again.

ASG Treasurer Magalei Logovi’i told Samoa News late last month the money remains frozen in the Vietnam bank, whose officials are awaiting a final report from that country’s authorities.

SIC has scheduled two hearings this week in the afternoon, with the first set for tomorrow (Tuesday) with two witnesses — the Bank of Hawai’i district manager for American Samoa Hobbs Lowson and Treasury Department official Levi Reese. On Wednesday, the sole witness is Treasurer Magalei.

Samoa News notes there is no word if the SIC probe into the DBAS Section 1302 Housing program will resume. The last time the committee met to investigate the program, a quorum was not present, necessitating rescheduling the hearing. No date was given at that time for the ‘reschedule’