The government’s retirement fund Executive Director, Luatua Filisouoaiga Taafua believes that the investigation launched against him for “misconduct and fraud” is a backlash from last year's High Court case where the former Chairman stood up against Governor Lolo M. Moliga.

In a statement issued to Samoa News and signed by Luatua on Tuesday, he pointed out that the allegations are baseless. As of yesterday, the American Samoa Government Employee Retirement Fund (ASGERF) board has moved to place Luatua on leave with pay and appointed Assistant Director Caroline Wendt as Acting Director, pending the outcome of the investigation.

Earlier this month, ASGERF board Chairman Fanene Morris Scanlan, in a letter dated July 2, 2015, wrote to the ASGERF director that after reviewing the information given to him prior to and during a meeting with Luatua, his observations and recommendations were that questions on the use of the Chairman’s signature rubber stamp for checks issued out of the Administrative Account without the proper authorization raised “concerns for conflict of interest, ethical questions and abuse of fund” and in closing asked for his resignation as “CEO of the Retirement Fund given the circumstances.”

Luatua in his statement, issued yesterday, said “for many years I have faithfully served the people of American Samoa as an employee of the American Samoa Government Employees’ Retirement Fund. First, as an assistant director of the Fund, and now as Executive Director, I served under former Chairman Aleki Sene, Sr., and now under Chairman HC Fanene Morris Scanlan.”

He said that throughout those years he has seen the Fund grow from what it used to be, to what it has now become, calling it: “One of the most prosperous pension plans of its size in the nation.”

Luatua added, “That was something that took hard work. It took dedication and commitment to the people the Fund was meant to serve. I do not claim any responsibility for the Fund's success, I claim only the honor I had to work with those people who led the Fund with wisdom and foresight and who turned it into what it is today.”

He stated that the events of last week have “honestly left him sad.”

“Not just because I am being accused of misconduct and fraud, but more so because of the manner by which this whole process is being turned,” Luatua stated.

He said during the late Governor AP Lutali’s first term, the Fono with the recommendation of the ASGERF Board, enacted new legislation that totally removed the Fund from the ASG and its politics. Back then, ASGERF funds were co-mingled with ASG funds in the general account. The ASG Treasurer and the Human Resources director were ex officio members of the Board, and the Governor held sway over the Board and its decision-making. The 1984 laws changed all of that and the Fund was left to the Board to run, Luatua notes.

“I bring this up for historical purposes, but also to underscore the fact that after 31 years of success and independence, the Fund is being handed back to the ASG and the Governor.

“It has become obvious from the correspondences of the last week that Government politics is (sic) becoming the main motivator behind this so-called investigation. In a way I was expecting it as a backlash from last year’s High Court case where the former Chairman stood up against the Governor and his efforts to disregard the law when he failed to consult the Board with his new appointments.

“These allegations of fraud and misconduct are baseless,” he states.

Luatua said in his statement, it is unclear to him what Chairman Fanene and some members of the Board are pointing to as fraud and misconduct, “I am pretty sure that external forces have not missed the opportunity to blow it out of proportion in order to make a mountain out of a molehill.”

He said, “an investigation by the Department of Public Safety was recommended by the Governor, and just this morning I was informed by the Samoa News that an independent auditor is being called in.

“As a former DPS Commissioner always said: ‘It’s all for show’.”

The fund director stated that the Fund is successful because its members trust those who manage their money. 

“Having held a position of trust for many years, and realizing that Fund members have a right to know what is happening, I would like to say to them the following:

“For many years I have worked as a humble servant. I did my best for you because I know you did yours for the people of American Samoa through your service as Government employees.”

He continued, saying the Fund is secure, it is sound, it is strong and told the members to keep their faith in the people who run it and realize that whatever misunderstandings or issues that are now being circulated and misstated, that “your money is in good hands.”

Luatua, addressing the government employees, said: “I have never dishonored you as a Fund employee, and when liberated from these charges, I shall continue to serve you faithfully, honestly and with integrity, as I have always done.”