Pago Pago, AMERICAN SAMOA — American Samoa's Chief Procurement Officer (CPO), Frederick Ledoux, told the Senate Government Operations Committee, last week, that he played no role in negotiating, reviewing, or approving the agreement that led to the investment of $10.1 million in ARPA interest funds.

Ledoux made the statement during a hearing examining the government's decision to invest the funds through off-island companies McKinley Beech Tree and NBT LLC.

His testimony raised additional questions about whether established procurement procedures were followed before the agreement was executed.

Committee Chairman Senator Togiola T.A. Tulafono said lawmakers understand that government contracts and agreements are typically subject to review by both the Chief Procurement Officer and the Attorney General to ensure compliance with the law and to protect government interests.

According to Togiola, the committee wanted to determine whether the investment agreement had gone through the required review process before $10.1 million in public funds was committed.

The senator noted that the agreement submitted to the committee was signed by Governor's Executive Advisor for Finance Brett Butler, rather than by the Governor or the Attorney General.

He questioned whether Butler had legal authority to enter into contracts on behalf of the government and expressed concern that safeguards designed to protect public funds may have been bypassed.

Ledoux testified that he first learned about the agreement through public reports and had never been consulted about it.

"I was never informed about a contract with these companies," he told senators.

According to the CPO, the normal procedure requires contracts and agreements to be routed through his office for review. After his evaluation, the documents are typically forwarded to the Attorney General for legal review. Once the Attorney General signs off, the agreement is returned to the Chief Procurement Officer for final approval.

Ledoux said that process did not occur in this case.

He further testified that he was never invited to any meetings concerning the investment proposal and was not aware of any discussions involving his office.

"I was never asked to attend any discussions, and nobody provided me with information about the contract," he said.

Asked whether the Attorney General had reviewed the agreement, Ledoux said he could not answer that question.

He explained that he had not spoken directly with the Attorney General about the matter and only knew what had been reported publicly.

Ledoux recalled hearing comments from Butler on television and radio indicating that he consulted with the Attorney General but that she did not approve the agreement.

However, Ledoux said he had no firsthand knowledge of those discussions.

The hearing also focused on whether Butler possessed authority to sign contracts on behalf of the government.

Ledoux told the committee that throughout his tenure as Chief Procurement Officer, he has consistently informed cabinet members and agency directors that although they may participate in negotiations, procurement laws require contracts to be reviewed and approved through the proper channels.

"I've always told directors and cabinet members that they can negotiate," Ledoux testified. "But unless the agreement is approved by the Chief Procurement Officer and the Attorney General, I will not honor it."

He added that no executive order or directive had ever been issued giving Butler authority to bypass the procurement process.

During questioning from Senate President Tuaolo Manaia Fruean, Ledoux acknowledged that he was disappointed by the circumstances surrounding the agreement.

He said he was saddened by what had transpired because he believed he had earned the trust of the administration and expected to be included in discussions involving a transaction of such significance.

Ledoux confirmed that he has not discussed the agreement with either the Attorney General or the Governor.

For now, he said he is simply monitoring developments and waiting to see how the matter is ultimately resolved.

Responding to Ledoux's comments, Tuaolo encouraged him not to be discouraged.

"You should not be sad because you spoke the truth," the Senate President said. "The truth is no reason to be sad."

Senator Magalei Logovii asked whether an executive order had been issued granting Butler authority to sign government contracts.

Ledoux responded that no such executive order exists.

He went a step further, stating that even if one had been issued, he would oppose it because it would undermine procurement laws designed to protect government resources.

Senator Utu Sila Poasa then shifted the discussion to infrastructure projects.

He asked Ledoux whether the Procurement Office routinely approves contracts related to airport and port development projects.

Ledoux answered yes.

Utu pointed out that the investment agreement identifies airport and port development projects as among the purposes for raising capital through the investment arrangement.

Given that connection, the senator argued that the investment contract itself should also have been subject to procurement review and approval.

"If contracts for airport and port projects must come through the Procurement Office, then a contract intended to generate funding for those same projects should also be reviewed," Utu suggested.

At the conclusion of the hearing, Togiola thanked Ledoux for what he described as straightforward and candid testimony.

The committee chairman commended the Chief Procurement Officer for clearly outlining the procurement process and explaining the safeguards intended to protect taxpayer funds.

Togiola also praised Ledoux's commitment to ensuring that government contracts comply with the law and that all parties involved are held to the same standards.

As the Senate's investigation continues, lawmakers are expected to examine whether procurement laws were followed in connection with the $10.1 million investment and whether additional safeguards may be needed to prevent similar controversies in the future.