The House has postponed second reading of the administration bill appropriating $36 million in surplus funds for Fiscal Year 2023.
Vice Speaker Fetui Fetu moved a motion to postpone the vote for now pending further review of the bill.
The House Budget and Appropriations Committee has asked Treasurer Malemo Tausaga to provide a full accounting of expenditures paid with the surplus funds.
The Treasurer and Budget Director, Cathy Saelua, appeared before the committee this morning to explain the $36 million surplus, as well as the $22 million appropriations bill of surplus funds from Fiscal Year 2022.
Malemo said the $36 million surplus has already been used and apologized to the committee. He agreed with statements by the Vice Speaker and Representative Larry Sanitoa that the spending of these funds without approval of the Fono has violated the law.
According to the Treasurer, while they are well aware of the law, they had to respond quickly to emergency needs and this is why they did not come to the Fono first to get approval.
He mentioned specifically escape routes and roads in Manu’a and Tutuila, and also local match for Medicaid.
The ASG officials were told that any excess funds should be submitted to the Fono to be appropriated, and while the House appreciates that the executive branch has implemented many needed infrastructure projects, the law must be followed.
Fetui said $36 million was such a huge amount of money and he was amazed that the administration would spend the surplus without even letting the Fono know.
He told Malemo and Budget Director Saelua they were veteran ASG employees, and are well versed with budget procedures.
He asked why the Fono leaders weren’t informed.
“Money is the root of all evil,” said Fetu; and declared he does not accept this “violation of the budget law.”
House Speaker Savali Talavou Ale asked the ASG officials to submit a list of projects that were paid with the surplus funds.
Rep. Sanitoa said the administration has put the Fono in a difficult position, and the spending of excess funds without the Fono’s approval is a sure violation of the budget law.
Rep. Ape Asifoa said he had always looked up to Malemo, but now he is losing sleep—not out of concern for his district, but for the territory in the face of this spending without authorization from the Fono.
The $36 million surplus was on the calendar for second reading today, however, the majority of House members voted to postpone a vote pending further review of the bill.
Meanwhile, the House approved in second reading the bill appropriating $22 million of surplus money from Fiscal Year 2022. The bill includes funding to pay for the office expense allowance increase for the Fono plus 8 other budget items.
The House approved the Senate amendment of the administration bill, changing the salary increase for the Fono to an increase of office expense allowances instead.
