Fuiavailili counters statements by Tuaolo

keniseli-aswering-questions

Before he was removed from the Board of Trustees of the American Samoa Government Employees Retirement Fund, Fuiavailili Keniseli Lafaele responded to statements by Board Chairman Tuaolo Manaia Fruean, who alleged that Fuiavailili had personal agendas and had received more travel funds than any other board member.

Tuaolo’s comments were included in an April 15 letter denying travel for Fuiavailili to attend a meeting of NCPERS, the National Conference on Public Employee Retirement Systems.

Responding to Tuaolo’s letter, Fuiavailili said that he did not request to be included in the delegation to the NCPERS conference; he was simply informing Tuaolo of his availability to attend. He pointed out that trustee participation in conferences like NCPERS is not a privilege but a professional obligation, as these events are critical for staying informed about current market conditions, industry practices, and regulatory changes that affect the Fund. He added that some trustees have treated these trips as personal vacations, failing to attend the conferences for which they were funded.

“That deserves closer scrutiny,” Fuiavailili urged.

Regarding the travel funds he received, Fuiavailili stated that all his Retirement Fund-related travel was approved by the board. He submitted trip reports for each trip, except for a recent San Diego conference he attended with the legal counsel and acting director of the Retirement Fund. “To my knowledge, no other trustee who registered or received travel funds participated. This raises an important question: Who received travel checks for airfare, lodging, and per diem, and who attended? Were unused funds returned or declared as taxable income?”

Fuiavailili said Tuaolo’s reference to personal agendas was unfounded. He stated that his reports and the board’s meeting minutes document his consistent efforts to improve governance and performance. He had worked with the vice chairman and, with board approval, helped secure NCPERS group life insurance for active members and their families. They also initiated reviews with recommendations from professional advisors and led the engagement of a second investment advisor.

According to Fuiavailili, his letters to the editor were a last resort—driven not by personal ambition but by fiduciary duty—when internal efforts for reform were ignored or blocked.

In his letter, Fuiavailili charged that the chairman’s unilateral decision-making, including rushed contract renewals for the executive director and legal counsel without proper evaluation, “is more concerning.”

He claimed the legal counsel is employed full-time in two branches of government, a clear case of double-dipping. He also alleged that Tuaolo obstructed the release of financial information regarding increased operational expenditures in previous years and blocked a planned TAO audit last June. In addition, Tuaolo failed to hold officer elections when terms expired in April last year, “enabling his continued chairmanship.”

Fuiavailili said, “Your dual role as President of the Senate and Chairman of the Board, while the Senate Legal Advisor serves as the Fund’s legal counsel, creates an apparent conflict of interest.” This, he said, violates fundamental governance principles and the separation of powers enshrined in the American Samoa Revised Constitution.

While the Retirement Fund Board of Trustees has voted to remove Fuiavailili, there are questions as to whether the board has this authority. According to the law, a trustee can be removed from the board by the governor only for breach of fiduciary responsibilities or for just cause.