Pago Pago, AMERICAN SAMOA — The LBJ Board of Directors has been receiving illegal allowances of $1,000 per member after their meetings, which sometimes occurred twice a month.

This revelation came from Senator Togiola T.A. Tulafono during Tuesday's Senate Hospital and Public Health Committee hearing. Testifying before the committee were LBJ Board Chairman Aifili J. Tufa, LBJ CEO Magele Scott Anesi, LBJ CMO Dr. James Sunia, and DOH Director Dr. Saipale Fuimaono.

Senator Togiola questioned whether this practice was frequent. Chairman Tufa confirmed, explaining that the Board often had numerous critical issues to address, and their meetings sometimes extended beyond 5 p.m.

"So does that mean each [board] director is paid $2,000 a month?" Senator Togiola asked. Chairman Tufa affirmed this.

The Senator then inquired if the Chairman was familiar with Section 13-0103 of the American Samoa Code Annotated (ASCA), which specifically governs the Medical Center Board of Directors.

Chairman Tufa responded that he had studied the section and sought legal counsel from an attorney who was employed at LBJ at the time. According to Tufa, he was advised that the Board's bylaws granted them the authority to implement the $1,000 monthly stipends, and this practice had been in place ever since.

"Are you claiming that your Board's bylaws have the authority to supersede the law," Togiola questioned.

"It is my belief that it cannot," Tufa responded firmly.

"Then how do you justify using your Board's bylaws to circumvent the law?" Togiola pressed, his tone unwavering.

Tufa tried to evade the question by stating that the Board would revisit the matter. However, Senator Togiola interrupted and reminded him of his earlier testimony.

"You just testified that, based on the LBJ Legal Counsel's advice, your Board, under its bylaws, has the authority to override what is explicitly outlined in the law. That was your testimony, correct?" Senator Togiola pressed.

"My testimony is that the LBJ Board bylaws cannot supersede the law," Tufa clarified, attempting to correct himself.

"Then why are you not adhering to the law?" Togiola demanded.

Tufa explained that the LBJ attorney had advised there was no clause in the law explicitly prohibiting the Board from paying its members a $1,000 monthly allowance. He stated this interpretation was the basis for the Board's decision to implement the change.

In response, Senator Togiola cited the relevant section of the law. "Section 13.0103 (j) clearly states: 'Board members shall be compensated at the rate of five thousand dollars per year, except the chairperson, who shall be paid six thousand dollars per year. Additionally, 'off-island directors shall receive compensation for necessary travel, lodging, meals, and telecommunication expenses incurred in the performance of their duties.'"

Chairman Tufa assured the hearing that the Board would address the issue in their meeting later that day. He pledged to resolve the matter and ensure compliance with the law

Senator Togiola expressed his hope that the Board would act responsibly and adhere to the law. He highlighted that the same legal provision had already been adopted and strictly followed by the American Samoa Power Authority (ASPA) Board of Directors.

"The ASPA Board is adhering to the law to the letter," Togiola emphasized. "In stark contrast, your Board claims there’s nothing in the law preventing you from awarding yourselves $1,000 monthly stipends."

He then demanded the identity of the attorney who had provided legal advice on the matter.

"Don’t tell me you can’t disclose it — there’s no confidentiality here," he warned. "You will tell me the name of that lawyer."

Tufa disclosed that the Board’s Legal Counsel at the time was Thomas Jones. He clarified that while Jones had provided advice, the decision to implement the monthly stipends had been made solely by the Board. Tufa further explained that this practice had originated with the previous Board, which they had since replaced, but it had continued to the present day.

Senator Togiola emphasized that this was indeed a serious situation and all directors who served on the LBJ Board and received allowances exceeding $5,000 per year, should pay back the surplus amount to government.

"Because it's an illegal stipend," Togiola declared. "And the government is entitled to recover that money. It's an illegal payment, so it needs to come back government.

During the Senate regular session, President Tuaolo Manaia Fruean addressed the exchange, expressing his hope that members of other government Boards watching the hearing would take the message to heart and strictly adhere to the law in carrying out their duties.

Tuaolo remarked that it appeared some Board members were exploiting bylaws to justify actions that served their own interests.

Senator Togiola concurred, pointing out that this was precisely what had occurred with the LBJ Board. He asserted that all funds overpaid to directors, from the time these unlawful payments began up to the present, must be reimbursed to the government.

Togiola stressed the need for the Governor's Office to take a firm stance against such practices, condemning those who attempt to manipulate the law for personal financial gain. He warned that failure to act decisively would only embolden others to continue these violations.

He stated that this reflects the LBJ Board members' blatant disregard for legislation enacted by the Legislature and signed into law by the governor to govern semi-autonomous agencies.

Togiola disclosed that he had discovered the LBJ Board not only received the compensation mandated by law but also amended their bylaws to authorize the $1,000 monthly stipend.

He emphasized that the Governor and Attorney General must be informed of this issue and recommended that all former directors who received payments exceeding the mandated amount be required to reimburse the government.

Senator Gaoteote suggested that the LBJ Board be subpoenaed and questioned on the matter when the Fono reconvenes.