Togiola calls for subpoena compelling Brett Butler to appear before Senate Investigative Committee

Senator Togiola T.A. Tulafono
Characterizes the insurance info of the $10.1 million investment provided by the admin as "taufa'asese"
andrew@samoanews.com

Pago Pago, AMERICAN SAMOA — The Senate Government Operations Investigative Committee is considering issuing a subpoena for Governor's Executive Advisor on Finance, Brett Butler, after learning that he is currently off-island and unavailable to answer questions about the insurance coverage surrounding the controversial $10.1 million investment of ARPA interest funds.

During a committee hearing on Monday, Chairman Senator Togiola T.A. Tulafono informed members that Butler had been scheduled to appear before the committee on Wednesday to testify about the insurance arrangements tied to the investment. However, the Governor's Office reportedly advised the committee that Butler is off-island and that officials were unable to provide a date for his return.

Given the importance of the issue, Togiola suggested that the committee consider issuing a subpoena to compel Butler's appearance once he becomes available.

According to the chairman, lawmakers still have numerous unanswered questions regarding claims that the $10.1 million investment was fully insured against loss.

The discussion stemmed from recent comments made by Governor Pulaali'i Nikolao Pula, who criticized the committee's investigation into the insurance aspect of the transaction.

During a press conference last Wednesday, the Governor was asked to clarify statements he had previously made during an interview on 93KHJ Morning Show indicating that the investment was protected by insurance. Similar testimony had also been presented to the Senate committee by Butler.

However, during a hearing days before the Fono's end-of-year recess, representatives from Trade and Merchant Trade Services and Southern Pacific Insurance Company testified online before the committee and reportedly denied having directly dealt with the American Samoa Government or issuing insurance coverage for the $10.1 million investment.

Those statements prompted lawmakers to seek clarification from the administration.

Responding to questions at the press conference, Governor Pula maintained that the committee had focused on the wrong individuals.

"The people that testified before the Fono, they were the wrong people," the Governor said. "They were not involved with the insurance at all. Although one of them may be a subsidiary of the lawyers in the United States and other folks who dealt with this big insurance. But the Fono, I'm sorry to say, were talking to the wrong people."

Asked to elaborate on the matter in detail at the press conference, Butler offered an explanation of how the insurance arrangement was structured.

According to Butler, the insurance agreement was part of the transaction between the American Samoa Government and McKinley Beech Tree (MBT).

"The insurance was between ASG and MBT," Butler said. "We would not release the $10.1 million until there was an insurance wrap around this money."

He explained that MBT hired an insurance broker known as First Gate, which then worked with Trade and Merchant. According to Butler, Trade and Merchant subsequently engaged Southern Pacific Insurance Company to act as an insurer or guarantor for the transaction.

"But regarding the engagement itself, ASG did not directly communicate with those insurance companies," Butler stated. "MBT worked through its broker, which coordinated with Trade and Merchant and Southern Pacific Insurance. That was the structure of the transaction."

Butler also said the administration had already provided the Fono with an insurance certificate documenting the arrangement.

At the conclusion of Monday's hearing involving ASTCA officials, Togiola revisited the Governor's assertion that the committee had questioned the wrong witnesses.

The senator pointed out that the committee's decision to call representatives from the insurance companies was based on information previously provided by the Governor's Office.

According to Togiola, a letter from the Governor supplied to the committee led lawmakers to seek testimony from those individuals.

"If the committee talked to the wrong people, it was because the Governor did not provide the correct information to the committee," Togiola argued.

He went on to characterize the information provided by the administration as "taufa'asese," a Samoan term meaning false or misleading.

Togiola said Butler's testimony remains critical to the committee's investigation, particularly because of the conflicting accounts regarding who arranged the insurance, who issued it, and whether valid coverage was ever in place for the investment.

For that reason, he said the committee must continue pursuing answers from Butler and indicated that issuing a subpoena may be the next step if voluntary testimony cannot be secured.

The insurance issue remains one of the central questions in the Senate's ongoing investigation into the administration's decision to invest $10.1 million in ARPA interest funds, with lawmakers seeking to determine whether adequate safeguards were in place to protect public money.