
Acting Treasurer Donald Kruse says there’s an overlap between the functions of department directors and executive advisors in the Governor’s Office.
During Kruse’s confirmation hearing in the House of Representatives Monday, Rep. Malaeoletalu Melesio Gurr asked what would happen if there’s a disagreement between himself as Treasurer and the executive advisor for Treasury. Malaeoletalu said the Treasurer should report directly to the Governor, and there shouldn’t be a middleman.
Kruse said the relationship between the director and the executive advisors has created some confusion, and is not sitting well with not only him, but other directors. He told the hearing, it was first explained that the executive advisors had advisory roles, but their duties and responsibilities spells out that they “oversee” departments. Kruse said he was surprised to see this because in his interpretation “oversee” means to lead. He pointed out that there’s no statutory authority allowing the functions of the executive advisors to oversee department directors.
He said his opinion has been sought by attorneys, and he hasn’t given an answer. But, in his mind, he questions what statute gives persons other than the Governor the authority, or mandate, to oversee directors.
Kruse fielded a wide range of questions including his priorities, ASG debts to the Retirement Fund, the $30 million owed to companies for projects which did not go through the procurement process, beefing up the Customs Division to prevent the importation of drugs, and the remaining portion of the $1.4 million that had been transferred to the Wells Fargo Bank.
Kruse said the top priority for him is to balance the ASG budget. He said that revenues are down and account payables are up, and there’s not enough money to meet payments. He felt that the collection of account receivables was lagging. Kruse did indicate that there was an increase in revenues for the second quarter of the fiscal year.
The Treasurer nominee indicated that there’s discussion about a reduction in hours, but said that this would only be carried out as a last resort.
Concerning the unpaid contributions to the Retirement Fund, Kruse explained that when the employer and employee contributions were raised to 14 and 6 percent respectively, there was no funding source identified to pay for the increase. The payments to the Retirement Fund cost about $840,000 every two weeks and the government also has to meet payroll and other commitments. He said the most important consideration in his mind is the people.
Kruse told the hearing he has only been on the job for two weeks, but they will work out a plan to make the Retirement Fund payments.
Responding to concerns about the influx of drugs into the territory. The acting treasurer said if customs had done an effective job, the drug infestation would not have festered to what it is now. He said he has delayed the selection of a Chief of Customs for the time being, and is praying that a strong and effective person for this position will be found.
When Rep. Alailepule Benjamin Vaivao asked Kruse about his business affiliations, he said that he has ended his involvement in family businesses and transferred them to his wife and children.
Regarding the $30 million owed to companies for work that was performed without going through the procurement process, Kruse said that this happened because the budgetary process was circumvented.
Several representatives only referred to constituents asking about Kruse’s role as a pastor, and how he would serve as director and also be a faifeau at the same time. But only Rep. Vala Porotesano Liusamoa asked him directly, if he was still in ministry and looking after a congregation. Kruse’s reply was yes.
Vala followed up, asking if he would continue to serve as a pastor if confirmed as Treasurer. Kruse started to reply saying that their denomination do things differently, when Vala interrupted and said he was taking back his question and Kruse didn’t have to explain.
The House is to vote on Kruse’s confirmation, Wednesday. The Senate approved him by a vote of 13-2, Tuesday.