Pago Pago, AMERICAN SAMOA — Senators learned on Wednesday that the $10 million in interest earnings from the American Samoa ARPA Fund is currently being invested in the United Arab Emirates, according to testimony before the Senate Government Operations Committee.

The disclosure came from Brett Butler, Executive Advisor for Finance in the Governor’s Office, who appeared before the committee to answer questions about the administration’s handling of ARPA funds and related financial activities.

Butler was joined by ARPA Office Director Puiali‘i James Faumuina and Medicaid Director Louise Kuaea, who also provided updates on their respective program areas.

Committee Chairman Senator Togiola T.A. Tulafono opened the hearing by seeking confirmation of a reported $11 million account at Zions Bank under the name of the American Samoa Government. He said the funds represented interest earned from the ARPA allocations deposited with Zions as part of the territory’s federally funded COVID‑19 recovery program.

Togiola asked whether such an account existed and whether the administration had formally designated it for ARPA interest earnings.

Butler responded that he was not aware of a separate ASG account at Zions Bank containing $11 million. However, he acknowledged that he was aware of an account maintained by the Treasury Department that is used to deposit ARPA interest revenue.

Senator Togiola continued by asking how much money was in the ARPA interest account at the time the administration began exploring what Butler described as a “funding opportunity.”

Butler testified that the account held approximately $17 million at that time.

Togiola then asked who had signing authority over the account. 

The Executive Finance advisor replied that the account signees were the Treasurer and the Deputy Treasurer. He went on to explain that between May and June 2025, the American Samoa Government entered negotiations with an independent broker, Entelles, which he said was responsible for bringing ASG and McKinley together for what he described as a funding opportunity.

Responding to Senator Togiola’s question about whether he personally knew anyone at Entelles, Butler stated that he did not.

Butler told senators that the investment proposal first surfaced when two retired Samoans living in Hawai‘i, both associated with the broker company Entelles, approached the ASG Hawai‘i Office in mid‑2025. The office then contacted him directly about the opportunity.

He said he spoke with them by phone, during which they outlined the proposal and its potential benefits. Butler testified that the pitch “sounded too good to be true,” and he made clear he would not bring anything to the Governor without a face‑to‑face meeting.

During one of his government trips, Butler met with the two individuals separately: Agnes Telles in Hawai‘i and Don Sa‘aga in California.

When Senator Togiola asked whether the pair were employees of Entelles, Butler said he was not sure if they were formal employees or contracted workers. He added that, in their discussions, both expressed a desire to support development in American Samoa.

One of the issues they raised, Butler said, was the need to modernize the Pago Pago International Airport, noting that Faleolo International Airport in Samoa had far more modern, state‑of‑the‑art facilities.

Togiola responded with a pointed remark, saying this was because “China loves Samoa, but the United States won’t give us enough money to improve our airport.”  

After hearing the initial pitch and learning about the company, and what Entelles proposed bringing to American Samoa for further discussions. Butler said he felt the matter should not be handled directly by the Governor’s Office. Instead, he referred the proposal to the Board of Directors of the American Samoa Economic Development Authority (ASEDA), describing it as a potentially significant economic development opportunity for the Territory.

However, Butler testified that ASEDA did not support moving forward, telling him they needed more evidence of the project’s credibility before endorsing any action.

Senator Togiola asked whether Butler sought alternative avenues after ASEDA declined. Butler said his initial reaction was to abandon the project, given ASEDA’s lack of support.

But he said the proposal was revived after Vandy Agrawal, a senior member of Entelles whom Don Sa‘aga and Agnes Telles reported to, provided additional information about Entelles’ relationship with McKinley. Butler testified that Agrawal’s explanation convinced him to continue pursuing implementation of the project despite ASEDA’s reservations.

(Samoa News should point out that in the draft document of the Master Project Funding Agreement a Mrs. Vandana Agrawai would be receiving from ASG a funding facilitation fee equal to 10% of the applicable installment or tranche draw down, in consideration for funding coordination and placement services rendered under this Agreement.)

Butler testified that Vandy Agrawal argued McKinley was among the very few companies capable of providing non‑recourse funding, a structure in which the borrower is not personally liable beyond the pledged collateral. 

He said Agrawal emphasized that the initial contract presented by Entelles was not a request for ASG to hand over money, but simply an agreement to advance to the next step — a meeting with McKinley’s legal team.

Togiola asked whether ASG had any formal agreement with McKinley for the investment of funds. Butler responded that, after discussions with the independent brokers, ASG agreed to sign the preliminary contract and meet with McKinley’s lawyers without releasing any money, in order to understand what the proposal meant for the American Samoa Government.

Following those discussions, Butler said the next step before releasing any investment funds was to meet directly with McKinley CEO Halen Bach. He stressed that no ASG funds would be released until he had a face‑to‑face meeting with Bach to understand who he was and what kind of venture ASG would be entering.

Butler said the opportunity arose unexpectedly when he traveled to Bangkok, Thailand, to attend a fuel suppliers meeting. While in Thailand, he learned that Bach was in Phuket, in the country’s southern region. Butler said he contacted Bach and asked if they could meet in Bangkok — and they did.

Butler testified that only after his face‑to‑face meeting with McKinley CEO Bach were investment funds finally released — but not directly to McKinley. Instead, he said the money was first transferred to an ESCO‑affiliated attorney in Leawood, Kansas, who served as a neutral intermediary representing both ASG and the McKinley parties.

According to Butler, the attorney’s role was to hold the funds in escrow until ASG received fraud‑insurance documentation from McKinley. He explained that the arrangement required McKinley to provide insurance guaranteeing the funds would be protected against fraud, and only after ASG verified that insurance would the attorney be given the green light to release the money.

Butler emphasized that this structure was intended to ensure no ASG funds were exposed until the promised insurance was in place, framing the escrow step as a safeguard built into the investment process.

Senator Togiola asked whether there was confirmation that ASG’s investment funds had been transferred to McKinley, and whether a formal contract — signed and delivered — outlined the terms between ASG and McKinley. Butler answered yes to both questions.

Togiola then referenced Acting Treasurer Carrie‑Lee Magalei‑Tulafono’s testimony from Tuesday, in which she stated that the transfer of investment funds required three signatures: hers, the Governor’s, and Butler’s. Those signatures authorized the movement of ARPA interest funds from Zions Bank to Timothy Stein, the ESCO‑affiliated attorney in Leawood, Kansas, who served as the escrow intermediary.

When asked whether McKinley was also based in Kansas, Butler said no. He explained that McKinley is an international company with offices in multiple countries and several parts of the United States. Its CEO, Halen Bach, is a Korean national based in South Korea.

Togiola pressed further, asking whether Butler was dealing with McKinley offices in the United States. Butler replied no — his dealings were directly with the CEO in South Korea, not with any U.S.‑based McKinley office.

Senator Togiola voiced serious concern that the American Samoa Government had entered into a financial transaction involving a foreign entity, raising constitutional questions about executive authority and legislative oversight.

He asked Butler directly: “What is the position of the Governor and the Governor’s Office with respect to the authority for the Governor, yourself, and the Acting Treasurer to transfer $10 million of ASG funds for investment purposes without appropriation authority from the Legislature, based on our Constitution?”

Butler replied that he could not answer the question, saying it was one the Governor himself must address.

“I report to the Governor, the Acting Treasurer reports to the Governor, and it’s the Governor that needs to answer that question, I believe, sir.”

Togiola pressed further, “Did the Governor authorize sending this money to these people?”

Butler confirmed: “That’s correct. He authorized this funding opportunity for the American Samoa Government, with the intention of ultimately getting $100 million in return to help with the airport project.”

Togiola then asked whether the Governor understood that the $10 million would end up in a foreign country. Butler clarified that the agreement was with McKinley Beech Tree, two separate entities partnered under ASG’s contract.

An increasingly frustrated Togiola demanded clarity: “Which McKinley did the money go to?”

When Butler attempted to reframe the question, Togiola cut him off: “My question is really simple. Where is the $10 million?”

Butler answered: “The $10 million is right now invested in the United Arab Emirates by Beech Tree for the American Samoa Government, for a bigger opportunity to leverage projects being financed by the pension fund of the UAE.”

At the mention that the $10 million in ASG funds was now invested in the United Arab Emirates, Senator Togiola appeared visibly stunned. He leaned forward, held his head in his hand, looked down at the table, and slowly shook his head, reacting to what he had just heard.

“So our money — the American Samoa Government’s $10 million — is not in South Korea, not in Texas… it’s in the UAE?” Senator Togiola asked, incredulous.

Butler confirmed that the funds were indeed in the United Arab Emirates, stating they were insured under an irrevocable guarantee and that he could provide verification.

Senator Togiola again pressed Butler on whether the Governor knew, at the time he authorized the transfer of $10 million, that the funds would ultimately end up in a foreign country.

Butler responded that the funding destination was not identified when the contract was first signed. He said it only became clear months later where the investment would be placed.

With ASG expecting a $100 million return from its $10 million investment, Togiola asked whether any portion of that return had been received since the project began.

Butler explained the contractual terms as they were presented to ASG:

After 30 days, ASG was supposed to receive $20 million. After another 30 days, ASG was supposed to receive $30 million. After a further 30 days, the return was supposed to increase to $50 million.

These staged payouts — totaling $100 million within 90 days — formed the basis of the investment’s promised benefit.

Asked whether ASG had received the first $20 million return payment, Butler said no, noting that as of 5 a.m. that morning, ASG received notice that the first payout would arrive on or before September 18, 2026.

He later reframed the update, saying the UAE government would provide a “window of opportunity for ASG to pull the funds down and get it to the ASG account.”  

KEY CONCEPT: SOVEREIGN FINANCIAL CONTROLS

Butler then attributed the delays to the ongoing war between the United States and Iran, explaining that Iran’s attacks on neighboring countries — including the UAE — were disrupting the movement of money out of the region. According to McKinley Beech Tree, he said, this conflict was the primary factor prompting the UAE’s regulatory board to restrict the outflow of funds, thereby delaying ASG’s scheduled payouts.

It was at this point that Committee Chairman Senator Togiola concluded his line of questioning and opened the floor to senators who wished to question the witness.

Senate Vice President Magalei Logovii, who also serves on the ASEDA Board, delivered one of the sharpest rebukes of the hearing. He said his daughter, Acting Treasurer Carrie‑Lee Magalei‑Tulafono, told him she had asked Butler on Thursday when ASG would receive the first return payment from the $10 million investment. According to her, Butler assured her the payout would arrive by Friday.

Magalei‑Tulafono emphasized that her office was under intense pressure because the Fono was actively investigating the matter.

“Then on Friday, my daughter came home after work and told me they haven’t received anything,” Magalei said. “Are you lying to this committee?”

Magalei then revealed that after Butler pitched the McKinley investment to the ASEDA Board, members sought independent verification. They contacted an associate on the mainland, Don Cody, and asked him to investigate whether Don Saʻaga was actually employed by McKinley. Cody later informed the Board that no such person worked for the firm.

Magalei accused Saʻaga and Agnes Telles of using McKinley letterhead to gain access to ASG funds.

“Who are you trying to fool?” an irate Magalei demanded. “E le valea koeaiga ia! These old men are not fools. I’m sick of your lies in front of this committee!”

In response, Butler maintained that from the outset, everyone understood Saʻaga and Telles were independent brokers, not McKinley employees.

Senator Gaoteote Palaie Tofau acknowledged Butler’s background and experience in finance, but underscored the central issue: McKinley’s promised payout deadlines had come and gone, and ASG still had nothing to show for it. 

Gaoteote pressed Butler on what he described as a troubling pattern in the testimony. He noted that based on Butler’s own statements, he alone appeared to be negotiating with the so‑called independent brokers and the individuals claiming to represent McKinley. The senator said the central question that emerged was whether the Governor had ever authorized Butler to move such a large sum of public money without Fono approval.

“All these things you were talking about — you got the answers,” Gaoteote said. “But I have a strong feeling that you’re the only one who knows, because listening to your testimony, it’s always I, I, and I. You never said anything about the Governor recommending this or that. It’s always you, you, and you. I’m very disappointed, and I don’t know what to believe. In my experience as a senator, you are not telling us the truth.”

In response, Butler emphasized that every action he took on the project was done with the Governor’s approval, reiterating that he had not acted independently or without executive direction.

Senator Tuanaʻitau Malaki Togiola voiced his frustration with the unfolding situation, raising the question weighing heavily on the committee: Who will repay the $10 million if this investment collapses?

Butler thanked Tuanaʻitau for the question and reminded the Tualauta senator that ASG has insurance coverage for fraud involving the investment funds. He apologized for the delay in receiving the return payments but urged senators to be patient and wait until September 18, 2026, the date he had been informed the first payout would be released.

Senator Togiola then asked which insurance company was responsible for the fraud coverage. Butler replied that the policy was held with South Pacific Insurance, which maintains a branch in American Samoa.

With the details of the investment venture now fully disclosed, the committee concluded that nothing more could be done at this stage except to wait for September 18, 2026, and see whether the promised return payments actually materialize.

(Samoa News will report further next week on other issues covered during the hearing.)