Pago Pago, AMERICAN SAMOA — The House Ways and Means Committee is giving the American Samoa Government a chance to correct the amount of revenues they will collect from the petroleum fee hike of 2-cents to pay for the ASEDA 2018 bonds, before the committee votes on the proposed legislation.

Committee vice chairman, Rep. Vailiuama Steve Leasiolagi told Treasurer Ueligitone Tonumaipea at yesterday’s hearing that the committee needs the actual report no later than 4pm yesterday.

Rep. Tupua Shaun Vaa is the committee chairman.

Tonumaipe’a and Budget Office director Cathy Aigamaua-Saelua appeared before the committee yesterday to discuss revenues ASG is will collect from the petroleum fee hike.

According to the administration’s bill, the current fee of 6-cents per gallon paid by the fuel suppliers, is to be increased by 2-cents and the additional cost will go towards paying the debt service of the 2018 bonds.

Upon full repayment of the bonds, these revenues are to be deposited in the general fund and will be available for appropriation by the Legislature.

The bill also provides that 50% of revenues from scanner fees are to be earmarked for the ASEDA 2018 bonds series repayment and the balance goes to maintaining all scanner equipment. Upon full payment of the bonds, all revenues are to be deposited in the general fund and available for appropriation by the Legislature.

According to Tonumaipe’a, ASG will collect $400,000 every year from the 2-cent increase in the petroleum fee. However, according to revenue reports submitted by Treasury to the committee, ASG will collect $800,000 from the 2-cent increase.

Rep. Loia Gutu asked Tonumaipe'a why the figures he presented to the committee were different from the ones in the report. The treasurer said his answer was based on the numbers that were provided to him by his staff, who had conducted the research and provided all the information to him.

Rep. Loia advised the treasurer not to rely on his staff to do the research for him, because it is he who appears before the Fono to answer questions regarding the government’s revenue.

House Vice Speaker Fetu Fetui Jr echoed Loia’s statement and told Tonumaipe’a this is not the way he should respond to the Fono when it comes to ASG revenues.

“Your response was unprofessional. You are a leader and you should do your homework first before you come to testify,” Fetu said.

The Manu'a lawmaker said the faipule were waiting for Tonumaipe'a to present an accurate report on the revenue situation, along with the amount of revenues ASG is going to collect from the 2-cent petroleum fee hike. However, it appears from the treasurer's statements that he did not double check with his staff.

Tonumaipe’a said he would speak to his staff and find out the correct figures.

Speaking about the government’s budget, Tonumaipe’a told faipule that the budget includes only figures — not real revenue — and that’s why they work together with the Budget Director almost everyday, to make sure the government is not faced with any problems when it comes to payroll.

He said when he receives reports from his staff that collections are low, he contacts the Budget Director and advises her to slow down with the daily expenses, to make sure the expenditures and revenues balance out.

Rep. Vesi Talalelei Fautanu Jr wanted to know who would be responsible for collecting the 2-cent increase. Tonumaipe’a said Pacific Energy (PE) would collect and submit reports to the government.

Rep. Vesi said it's the government's duty to carry out the work, to make sure all revenues are collected.

Rep. Andra Samoa echoed Vesi’s statement. She told Tonumaipe’a that during her time at the American Samoa Power Authority (ASPA), which was a fuel supplier back then, it was the government who did the collections not Pacific Energy.

Chairman Tupua asked the treasurer why collections for petroleum last month were higher that the other months of FY 2019. Referring to a report presented to the committee, Tupua said the normal collections for petroleum is around $2.5 million every month. However, the report shows that in February, collection was $4 million.

Tonumaipe’a then revealed that they have just discovered from their records that Pacific Energy (PE) owed the American Samoa Government over $1.7 million not collected from the previous fiscal years. Last month, PE paid the entire amount and that’s why collections for last month were higher.

Rep. Larry Sanitoa asked the treasurer why the $50 million from the 2018 bonds was not presented in bill format to the Fono for approval, as required by the Constitution and law. He said he questions the procedure involved, because allocation of proceeds requires Fono approval.

Tonumaipe’a said he’s not the one who makes the decision on whether the 2018 bonds are presented to the Fono for approval or not, as that decision is made by his boss, the governor. He said his boss discussed the bond issue with Fono leaders and they all agreed on it.

Rep. Gafatasi Afalava echoed Sanitoa’s statement and told the treasurer that the administration must submit a bill allocating bond revenues for projects that the administration has identified.

In the meantime, the Senate is not moving on their version of the bill until ASEDA submits a new bill for Fono approval to appropriate the $50.3 million of the 2018 bond series.

According to a report from ASEDA, $50.3 million was raised from the 2018 bond series and $27.8 million has been spent, leaving a balance of $22.5 million.

Of the $27.8 million already spent, all except $1.8 million goes to ASTCA. The breakdown of the money spent on ASTCA is as follows: $15 million for Hawaiki; $10.3 million for Hawaiki reimbursement; and $602,756 for ASTCA capital projects.

$1.8 million was for bond insurance and issuance, and consulting fees.