Ads by Google Ads by Google

Fono questions TOFR legal status, scraps review

The Fono Joint Budget Committee will not review the fiscal year 2015 budget proposal for the Territorial Office of Fiscal Reform (TOFR) until lawmakers receive official documents, which show the agency’s legal existence says joint budget committee co-chair Sen. Laolagi F.S. Vaeao, who is also chairman of the Senate Budget and Appropriations Committee.

 

TOFR is one of the handful of ASG offices that has not had their budget review finalized, because lawmakers are seeking more clarification from the Executive branch.

 

According to the FY 2015 budget document, TOFR operations include the Office of Petroleum Management and the American Samoa Petroleum Cooperative — which oversee operations of the Utulei Tank Farm.

 

TOFR also oversees grants from the Federal Emergency Management Agency (FEMA) for disaster projects and Federal Aviation Administration for airport projects. In FY 2015, the total budget for TOFR stands at $23.86 million — with $21 million going to FEMA Public Assistance and Hazard Mitigation projects from the 2009 earthquake and tsunami.

 

During Wednesday’s budget hearings, Laolagi informed lawmakers that the joint committee is still waiting for official documentation from the administration on the status of TOFR because the committee had learned recently that the executive order to keep this office in existence expired in 2011.

 

“So far, that means to the Fono, this agency doesn’t exist unless and until we get anything new in writing,” he said. “I believe that this office shouldn’t be allocated any money until its legal existence issue is addressed by the administration.”

 

And during Thursday’s budget hearings, Laolagi repeated the same statement, this time, telling ASG officials who were present at the hearing. He said ASG officials have been advised over the last couple of days that the joint committee needs official documents on TOFR’s existence, but still nothing has been submitted by the administration.

 

“If by the end of the Fono’s review of the FY 2015 budget there is no legal justification for the existence of this office, then there is no need to allocate funds to TOFR,” he told ASG officials, including ASG Budget Office senior staff. He said budget hearings will continue next week and hopefully by Tuesday or Wednesday they will be completed, followed by a joint committee debating the budget.

 

Responding to Samoa News questions, the governor’s executive assistant Iulogologo Joseph Pereira said a new executive order is being prepared for TOFR and will be sent to the Fono by Monday.

 

TOFR was initially established by executive order in 2001 to implement ASG fiscal reforms during the Tauese Administration.

 

At the time, American Samoa opted out of receiving its yearly National Tobacco Master Settlement Agreement payments in favor of an $18.6 million federal loan — administered by the U.S. Interior Department — for a debt restructure paying off a total of $14.3 million in long standing ASG debts. Of the total loan, $4.3 million went to fiscal reforms handled by TOFR.

 

Over the years, TOFR’s existence had been extended via executive order with more responsibilities  added — especially those overseeing FEMA and FAA grant funded projects.