Treasurer told to submit money bill for spending of bond revenues

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“It is clear from our local constitution and with the US Constitution, appropriation of all monies must be made by the Fono or by Congress.”

That’s the opening line of a letter from the Chairman of the Senate Budget and Appropriations Committee and former Treasurer Magalei Logovii to Treasurer Ueligitone Tonumaipe’a.

The senator’s  missive to Tonumaipe’a was sent the same day that  his committee questioned the Treasurer regarding the 2018 Bond Series and repayment.

At that hearing several senators told the treasurer that the administration’s spending of money on various projects without coming to the Fono for approval usurped the Fono’s appropriations authority and was a violation of the constitution.  The senators also told Tonumaipe’a that the bond revenues should be submitted as a money bill for the Fono to approve.

Board member of the American Samoa Economic Development Authority Iulogologo Joseph Pereira explained that it was their understanding  the Fono, through the legislation that was passed, for the first bond series in 2015  had  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.

Magalei in his letter to Tonumaipe’a cited Article II Section I of the  Revised Constitution of American Samoa: “No legislation may be inconsistent with this Constitution or the laws of the United States applicable to American Samoa.”

The section dictates that all money bills submitted for appropriation of funds shall not be in excess of revenues collected.

Further  the US Constitution Article 1, Section 9 states that “No money shall be drawn down from the Treasury but in consequence of appropriations made by Law”.

Senator Magalei told the Treasurer,  “Pursuant to today’ s Senate Budget and Appropriations hearing , please prepare and submit to the Fono a money bill to appropriate the bond funds received in 2018.”

At the recent hearing an ASEDA report showed that $50.3 million was raised from the 2018 Bond Series and $27.8 million has been spent, leaving a balance of $22.5 million.