Pago Pago, AMERICAN SAMOA — A Senate hearing was held on Wednesday, March 19, 2025 to examine the status of government payouts but senators quickly expanded to discussions to new positions in the Governor’s Office, dovetailing queries into the government’s finances.

Senators queried Governor Pulaali’i N. Pula’s new positions in the Governor’s Office that were identified by the director of Human Resources as Executive Directors and Executive Advisors. Salaries, revenue source and their job descriptions were part of the discussion, with some Senators basically saying that the government is becoming too top heavy, where “middlemen” seem to be the governor’s Cabinet, not the confirmed directors.

Treasurer Donald Kruse, Director of Human Resources Tiaoalii Dr Asenati Saau-Umi, and Deputy Director of the Budget Office, Aukso Satia attended the hearing to answer the senators’ questions that according to the Senator Utu Sila Poasa, who chaired the hearing, was not to point fingers, but for the Senate to know the status of ASG finances and possible issues before the Fono goes into recess on Friday, Mar. 21st.

The Fono will not return until this July. He noted however that they will be continuing to work throughout the recess.

Senator Magalei Logavii queried HR director Saau-Umi, about how many executive directors (EDs) are up at the Governor’s Office. Her reply after some prompting by Magalei revealed that there were two (2) EDs and six (6) Executive Advisors (EA). The two EDs, according to Saau-Umi, earn $80,000, while 5 of the EAs earn $75,000 and one of them earns $100,000.

The $100,000 salary was immediately noted by Magalei, who asked if paying the EA more than what the Lt. Governor earns is right? She replied that she had queried the Governor’s Office about the salary, especially as they are in the same office, but she was told it was what the governor wanted, and she answers to the Governor.

(Samoa News should point out that during the discussion of the issue, Saau-Umi would not name who the 8 people were, however, she inadvertently identified the $100K salary as belonging to the Finance Advisor. Samoa News then checked with the unconfirmed organization chart of the ASG it has, and that person is listed as Brett Butler, with the following departments and offices falling under him: Treasury, Budget, Procurement, Audit, Property Management, ASEDA, OFI, ARPA and CIP/ SP. )

The Treasurer weighed in on the issue of having a “middleman’ — a term used by Magalei — between him and the governor, and said he had voiced his concerns about this to the governor. Kruse said as he understood the hierarchy, it was Governor, Lt. Governor and Cabinet directors, with no ED or EA in between.

Senator Togiola Tulafono was next to ask about the EDs and EAs. He queried the HR director about who classified them? She pointed out that they were political appointees, to which he replied that was not what he was asking, he was asking for their classifications, “Did you check and see them?” he asked. He then said it was information he realized that could only be supplied via a subpoena, letting her know that one would be issued.

Togiola went on to ask about job descriptions for the ED and EA, which Umi replied that they were to assist the directors and departments in their goals and missions. For example, she said ASDOE employees are asking about their increments, which they are now addressing.

The Senator said that it sounds like there is “no more director to director”, instead an EA handles the issues. Saau-Umi, replied that the ED/ EA are like ‘runners’ helping the director — offering ‘special’ assistance. Togiola quipped: “If it walks like a duck, talks like a duck, it must be a duck,” and explained that the Fono has been getting complaints about this process, it creates more barriers.

Kruse once again responded that the governor is ultimately his boss, and not the eight that are up at the Governor’s Office, the structure has been put in place (“ua fola le fale”) by law, and it should be ‘corrected’, as it seems the EDs and EAs are the Cabinet instead of the directors.

Togiola then asked Deputy Budget director Satia how the new 8 job positions were being funded. Satia said that no new money was used, and as indicated in the Governor’s State of the Territory Address, the Governor’s Office positions have been re-shuffled, so no new money/ funding has been used.

In addressing the issue of the revenue source for the positions, Togiola pointed out that during the same address, the governor also stated that there is a $55 million shortfall in local revenue for the current fiscal year, which is a Senate concern. Debt owed persists and they are concerned about meeting the budget at the end of FY 2025. He asked if there’s any plan to balance the budget by year’s end?

Satia said collections have been better and the 10% cost containment in the Executive Branch has helped. Togiola asked if Q2 collections have made up for the 1st quarter shortfall? Satia replied that he has only unaudited numbers, preliminary numbers and he couldn’t answer the question. Togiola replied to answer truthfully as he would “chase your answer down”.

The Treasurer intervened, saying that the 2nd quarter does not end until April 15th — “Our money is doing better, but the quarter isn’t finished.” He offered that preliminary numbers are good right now (confirming Satia’s remarks), but can’t give exact figures because Q2 has not ended.

Kruse offered some general numbers saying, January and February — preliminary/ unaudited to qualify his statement that the numbers are good:

Revenues of $34mil has been collected, while Expenses for Jan. & Feb according to the budget numbers were to be $33mil, however with the 10% cost containment in place, the expenditures have fallen by 33% or to $22mil. So with collections of $34mil minus expenses of $22mil, leaves $12mil. Bringing in the $6.5 deficit in the 1st Quarter, a surplus equaling approximately $5mil is noted, if subtracted for the $12mil. He noted that the budgeted collections for Jan & Feb were $33mil, but instead $34mil was collected.

Senator Gaoteote Palaie Tofau spoke of the 8 positions up at the Governor’s Office as “a lot of bosses, less workers” — likening it to the saying, “Too many Chiefs, with no Indians”. He said they are unconfirmed people, the Fono doesn’t ask these people to answer questions, they only know to ask directors.

He also noted that bills are not being paid, while they are saying there’s a lot of money and pointed to the money still owed to the Retirement Fund and tax refunds.

“Pay your bills,” he said. As to EDs and EAs he asked the question, “Who is the ‘real’ boss?” They are the ones the Fono expect to answer questions.

Another senator asked how many people who have been payed out by ASG in the last administration are now working for the government again. And shouldn’t they pay back these payouts? He then asked for a list of political appointees.

Senator Olo Uluao Letuli focused on the $100K being paid to one of the EAs, asking the HR director who approved this salary to explain. She replied that it was approved by the Budget director and the Governor. Olo stated that it did not sit right with him, showing a lack of respect to the Lt. Governor.

Senator Fonoti Tafaifa also expressed his dismay at the positions of ED and EA, saying what he sees are people who go here and there, say this and that, then get in their cars and go to funerals. He said he had believed that his governor was when we in the Territory would finally see honesty and service to people, but that’s not what he hears.

Kruse replied that “our governor is fine,” to which Fonoti later noted, “Is he fine? That’s not our business, that’s the business of the people”.

Fonoti noted that directors are supported by the Fono for their positions, not these men. He also seemed to be offended by the presence of the Deputy Budget director, instead of the Budget Director.

Senator Utu said the paper handed to them listing the Treasury and Budget numbers look good — on paper — but what are the government’s IOUs — how much has actually been put in the system?

Senator Magalei then asked about revenues covering the bond payments. He said he could see that the 8% excise tax amount is falling, and yet prices are rising in the Territory. “Are there any new revenue measures to counteract this concern?” he asked.

Kruse said that right now for tax collections, 60% is from business taxes, 17% is from Customs and 32% is from Individual taxes. He pointed out that they are trying to find an avenue to raise revenues, but are currently focused on “enforcement” right now.