The American Samoa Government’s use of Coronavirus Relief Fund monies totaling $1.5 million to purchase the vessel MV Pago Pago was a violation of US Treasury laws.
This is revealed in an Interim Audit Update of an audit performed by the Office of the Inspector General of the US Treasury on ASG’s use of Coronavirus Relief Funds.
The Interim Audit Update dated September 12 was from Deborah Harker, Assistant Inspector General for Audit, US Dept. of Treasury to Jessica Milano Acting Chief Recovery Office.
ASG agreed with the finding and has repaid $1 million as of September 7.
According to the report, the use of $1.5 million for the purchase of the vessel occurred within the period for Coronavirus Relief Funds to be used. But ASG officials were unable to justify the purchase of the vessel as necessary in response to the COVID-19 public health emergency.
The OIG audit report said ASG originally leased the MV Pago Pago from the seller using non-Coronavirus Relief Funds, while the MV Manu’atele was being repaired. But it pointed out that ASG also owned other vessels like MV Sili, Segaula and the Uila o le Sami. In addition, the MV Pago Pago was not certified for passenger transport. Further, the seller’s proposal to ASG cited uses of the vessel that were non-COVID-19 related activities. These include, maritime search and rescue; marine patrol and marine sanctuary; Illegal, Unreported and Unregulated fishing monitoring; and drug surveillance.
According to the audit report, the American Samoa COVID-19 Compliance Review Committee, which was formed by the former governor, reviewed the MV Pago Pago purchase on December 24, 2020 and identified the purchase as a questioned cost. It concluded that there was no justification for the purchase, no assessment of the vessel’s current value and the purchase was not COVID-19 related. The CRC also recommended that other options be considered such as leasing the vessel to transport needed medical supplies.
KHJ News archives show that the vessel was originally owned by the President of Paramount Builders, Papalii Laulii Alofa, who purchased it from Honolulu. He declined to disclose the cost. The MV Pago Pago arrived here in April 2020.
The audit report said the American Samoa COVID-19 Task Force chairman, approved and signed the $1.5 million form to buy the vessel on September 18, 2020. The chairman was then Lt. Governor Lemanu Peleti Mauga.
The former treasurer, Uelegitone Tonumaipe’a, approved the form and the Governor signed it, but did not date his signature.
The Interim Audit Update said the first payment for the vessel was on September 17, 2020 which was prior to the approval by the COVID-19 Task Force Chairman. The second and third payments were made on October 7 and October 28, 2020.
The report says when auditors inquired how the purchase was necessary in response to the COVID-19 emergency, current ASG officials could not explain. Furthermore, COVID-19 Task Force members moved off-island and could not be located to answer their inquiries.
The OIG recommended that US Treasury work with their office to ensure that the $1.5 million that was used to buy the vessel be paid back to the US Treasury.
A July 14 letter from Treasurer Malemo Tausaga, included in the report, said, “We understand the finding and agree to pay back the $1.5 million of CRF proceeds that were used to purchase the MV Pago Pago.
ASG made $500,000 payments on July 19 and August 18, 2023, and the final payment of $500,000 is due today, September 19.
