Senators say ASEDA & administration have violated constitution

ueli-iu-talauega

Senators were adamant that the administration has violated the constitution by deciding and spending $50 million in proceeds from the 2018 Bond Series without legislative approval.

Senators Tuaolo Fruean, Nuanuaolefeagaiga Saoluaga Nua and Fa’amausili Mau Mau Jr. didn’t mince words in declaring that the administration has usurped the legislature’s appropriations authority by disbursing the bond money without any authorization from the Fono.

This morning Chairman of the American Samoa Economic Development Authority, Treasurer Ueligitone Tonumaipe’a, Attorney General Talauega Eleaslo Ale and the governor’s executive assistant Iulogologo Joseph Pereira were questioned by the Senate Budget and Appropriations Committee concerning the bond revenues and why the Fono hasn’t been involved in determining how the funding should be spent.

The ASEDA officials explained that the initial bond legislation approved in 2015 gave their board the authority to seek funding through the bond sale to implement projects for the territory’s well being.

They also pointed out that the governor had discussed the projects to be funded with the bond sale proceeds with the Fono leaders.

Senator Tuaolo Fruean said he wasn’t in the Senate when the bond legislation was approved, but it’s clear in his mind that any spending of government funds must be approved by the Fono first.

He said the projects being funded with the bond money should be submitted to the Fono in the form of a money bill.

Senator Nuanuaolefeagaiga Saoluaga Nua said outright that ASEDA and the executive branch have violated the constitution by spending money without legislative approval.

He said it was a case of ‘cutting the banana first and asking permission later’.

He wanted ASEDA to give the Senate a copy of their presentation to Moody’s, the bond rating company that was used to sell the 2018 Bond Series.

Nua told the ASEDA board members that senators may have passed the original bond legislation without their full understanding because they were not fully briefed.

But if they knew ASEDA was not going to come back to the Fono for future bonds, they would not have approved the bill.

Senator Magalei Logovii, who chaired the hearing, recalled that he had voted “No” on the bill for this very reason.

Senator Faamausili Mau Mau Jr. said this is what happens when a bill is rushed and it was his opinion that ASEDA was exercising muscle in spending money without any input from the Fono.

He also declared that he will not support the revenue measure now pending to repay the bonds.

Faamausili said the Fono is not just two people, a reference to the statement that the use of the bond proceeds was discussed by the governor and the Fono leaders.

Senator Fonoti Tafaifa told the ASEDA board members that what they have done is like children making the umu and then eating the umu themselves instead of serving the elders or their parents first. She said that they should present the umu to their elders first so they can receive their elders’ blessings.

ASEDA board member Iulogologo apologized to the senators, saying it was never the intention of the governor and the ASEDA Board to disregard the Fono.

He said ASEDA felt the Fono, through the legislation that was passed, had been given ASEDA authority to seek funds to carry out projects for the territory’s benefit and that the governor has discussed these matters with the Fono leaders.

After the ASEDA board members were excused, Senate Counsel Mitize Jessop Taase was called in.

The attorney told senators that the bond law only gave ASEDA permission to seek revenues but did not authorize ASEDA to determine how the bond proceeds will be spent.

She said from her research, there’s no provision in the law giving ASEDA this power.

She said the constitution vests appropriations authority with the Fono and the constitution takes precedent over all laws.

She agreed with Senator Tuaolo that the administration can submit a bill allocating bond revenues for the projects that the administration has identified.

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:

$15 m for  Hawaiki;

$10.3 m Hawaiki reimbursement; and

$602,756 for ASTCA capital projects.

The only other spending is $1.8m in bond issuance costs and consulting fees.