Pago Pago, AMERICAN SAMOA — Governor Pulaali’i Nikolao Pula's Executive Advisor on Finance, Brett Butler, told senators last week that he remains confident the American Samoa Government will receive the expected return from its $10.1 million investment of ARPA-generated interest funds before the end of the year.

Butler appeared before the Senate Government Operations Investigative Committee (SGOIC) on Wednesday, November 4, 2026, to answer Senate inquiries into the handling of the $10.1 million investment and provided an update on the investment.

Before the hearing commenced, Butler presented open remarks, with head of the SGOIC, Senator Togiola T.A. Tulafono responding immediately afterwards. Following remarks from both men, Butler testified. (See Samoa News, Nov. 6, 2026 Issue)

BUTLER TESTIMONY

During his testimony, Butler addressed questions regarding the status of the investment and efforts to recover the anticipated earnings. He assured committee members that the administration remains in communication with the parties involved and expects the funds to be deposited into the government's account at Zions Bank once the transaction is finalized.

The investment has drawn significant public and legislative attention in recent months because it involves interest earnings generated from monies received under the federal American Rescue Plan Act (ARPA). Senators have been closely monitoring the situation and have repeatedly sought updates on when the government can expect the promised return to materialize.

Responding to lawmakers' concerns, Butler said he remains optimistic that the matter is nearing resolution. According to his testimony, administration officials continue to work toward ensuring the funds are secured and transferred to the government's account.

"As of communications early this morning, we should anticipate that the UAE will have completed their crediting of the paid-in capital funds by Friday," Butler told the committee.

He said that once officials in the United Arab Emirates issue the official transmittal documents, copies would be provided to both the governor and the committee.

Butler said updates were being relayed through Gregory Burkholder, whom he described as one of the partners involved in the transaction.

"What he's indicating to us is that the UAE is starting to make traction right now to get this funding in place," Butler said.

He explained that once the funds are deposited and confirmed, a specific date and time will be set to formally close the transaction.

According to Butler, the closing of the deal would trigger the release of approximately $100 million to McKinley Beech Tree (MBT), the company involved in facilitating the investment.

"When they close the deal, that is good for us," Butler stated. "What happens next is that they will fund MBT, McKinley Beech Tree. They will fund them the $100 million that we're looking for here."

Butler then outlined the path the money is expected to take before reaching American Samoa.

He said the funds would first be transferred from an MBT account in Dubai to another MBT account in Switzerland. He emphasized that the move through Switzerland was intended to simplify the transfer process and avoid complications that could arise from sending such a large sum directly from the United Arab Emirates to the United States.

Addressing questions raised by senators, Butler clarified that the acronym SPC referred to a Special Purpose Company, not a South Pacific entity as some may have assumed.

He explained that the original plan called for American Samoa and McKinley Beech Tree to jointly establish a special-purpose company to facilitate the transaction. However, as discussions progressed, it became apparent that creating a new entity would involve additional costs and increased regulatory scrutiny.

As a result, Butler said, the parties decided to use an existing structure already maintained by McKinley Beech Tree in Switzerland.

"There was a cost to that. There was a lot more scrutiny that was going to be needed in setting up this type of arrangement," Butler explained. "In discussions with Beech Tree, Beech Tree has this setup already in Switzerland."

Under the revised arrangement, the funds would move from the MBT account in Dubai to its account in Switzerland. From there, the money would be transferred to an escrow account managed by an attorney hired for the transaction.

Referring to the expense summary he had presented, Butler noted that the government had already paid escrow attorney fees as part of the investment costs.

He explained that the escrow attorney would serve as the final intermediary before the funds are transferred to the American Samoa Government (ASG).

According to Butler, the attorney's role is to ensure that all conditions of the transaction have been satisfied before releasing the funds.

Once that verification process is completed, the money would be transferred from the escrow account directly into the ASGs account at Zions Bank.

The detailed explanation was part of the committee's ongoing effort to understand the structure of the transaction, the entities involved, and the safeguards in place before the anticipated return of more than $100 million to government accounts. 

Senators continued to question Butler closely about the financial arrangements as they seek greater transparency regarding the investment and its expected proceeds.

According to Butler's testimony, the process for returning the investment proceeds involves several steps once the transaction is finalized in the United Arab Emirates.

He explained that after the deal closes, the funds currently held in a McKinley Beech Tree account in Dubai will be transferred to the company's account in Switzerland. From there, the money will be sent to an escrow account established in Kansas by attorney Timothy Stein. The final step would be the transfer of the funds into the ASG’s account at Zions Bank.

Butler told senators that the total amount expected from the transaction is $101.1 million. That figure includes the original $10.1 million investment, meaning the actual profit generated would be approximately $90 million.

To provide a clearer picture of the transaction, Butler presented a breakdown of expenses associated with the investment. According to his figures, $896,000 was paid for an insurance wrap premium, $1.1 million was paid in fees to McKinley Beech Tree, $850,000 covered escrow attorney fees, and an additional $100,000 went toward McKinley Beech Tree administrative costs.

Those expenditures were paid from the original $10.1 million investment, leaving a remaining balance of $7,091,909, Butler said.

He further testified that brokers from Entellus, whom he described as the first individuals to approach him about the investment opportunity, are slated to receive $4.5 million in compensation once the transaction is completed.

After all fees and expenses are deducted, Butler said approximately $84.9 million would remain. Under the administration's plan, those funds would be deposited into the proposed Airport Modernization Fund, which is intended to support long-term improvements and development projects at Pago Pago International Airport.

Butler also explained that the fund would be subject to an 8 percent tax. Revenue generated from that tax would be deposited into the government's General Fund, where it could be appropriated for other public purposes. He noted that decisions regarding the use of those tax revenues would ultimately be made jointly by the executive branch and the Fono.

The projected $84.9 million net return has become one of the most closely scrutinized aspects of the investment, with lawmakers seeking assurances that the transaction will be completed and that the promised funds will ultimately reach government accounts. 

During Wednesday's hearing, Butler maintained that he remains confident the process is moving forward and that the proceeds will be received before the end of the year.

Committee members continued to press Butler on the risks associated with the transaction, with Senate President Tuaolo Manaia Fruean noting that in more than six decades of public service, he had never encountered a government investment arrangement of this nature.

Tuaolo told Butler that during his 61 years working in government, he observed that such financial arrangements were more commonly associated with private-sector companies than government entities.

Butler acknowledged the senator's concerns and agreed that the transaction was unprecedented for the territory.

"This has never been done before. I totally understand that," Butler said.

However, he argued that the potential benefits justified pursuing the opportunity, particularly as American Samoa searches for new sources of revenue amid growing financial challenges.

Butler noted that the territory continues to rely heavily on federal funding while local revenues have remained relatively stagnant.

"When this comes through, this is going to be a new revenue stream which we greatly need on this island," Butler told lawmakers. "Federal grants are diminishing, and we only generate about $130 million annually in local expenditures. There's not a lot of growth, and we're trying to bring in a new revenue stream to help support the broader infrastructure needs of the island."

Despite the optimistic projections, Tuaolo sought a more direct answer.

"Is it guaranteed we're going to get it, Brett?" he asked.

Butler replied that he had asked the same question of those involved in the deal.

"You know what they told me? They are 99.99 percent sure," he said. "So I'm very confident we'll get it before the end of this year."

Lawmakers also questioned Butler about the amount of money that would actually be available to the government after all fees, commissions, and expenses connected to the transaction are deducted.

In response, Butler provided a breakdown of how the anticipated proceeds would be distributed once the full $101.1 million is received.

According to Butler, the first step would be reimbursing the original $10.1 million investment, along with approximately $600,000 in accrued interest that would have been earned had the ARPA interest funds remained in their original account during the investment period.

"So $10.7 million will be put back into ARPA interest [account],” Butler explained.

After that reimbursement, Butler said an estimated $4.5 million would be paid to Entellus, the independent brokerage firm involved in arranging the transaction.

Once those obligations are satisfied, Butler said approximately $84.9 million would remain.

"That leaves about $84.9 million which will go into the airport fund," he told senators.

Under the administration's proposal, those funds would be deposited into the Airport Modernization Fund, which is intended to support major infrastructure improvements and future development at Pago Pago International Airport.

While acknowledging that the projected return would represent a significant gain if successful, Senator Togiola Tulafono said many lawmakers remained focused on what he described as the "big if" surrounding the transaction.

"Let me convey the question as put to me," Togiola said. "What if it doesn't happen?"

In response, Butler said he had raised similar concerns during discussions with Gregory Burkholder, one of the individuals involved in the transaction.

According to Butler, he was assured that safeguards were in place to protect the government in the event the deal fails to materialize. Those protections, he said, include surety bond coverage and a separate fraud insurance bond.

Butler testified that the ASGt is reportedly protected by surety bonds and would also be covered by a fraud bond valued at approximately $11.2 million, which he said would serve as financial protection for the government's investment.

The hearing concluded with one of the most direct questions posed during the proceedings, as Senator Togiola Tulafono sought to address speculation surrounding the transaction and the individuals involved in arranging it.

Togiola asked Butler whether he or Governor Pulaalii had ever been offered, promised, or discussed receiving any personal financial benefit from the fees that would be paid to the brokers and partners involved in the investment deal.

Specifically, the senator wanted to know whether any of the principals or partners associated with Entellus had indicated that a portion of their compensation would be shared with government officials once the transaction was completed and the brokerage fees were paid.

The question appeared aimed at eliminating any concerns about potential conflicts of interest or personal gain arising from the proposed $10.1 million investment transaction.

Butler responded immediately and emphatically, rejecting any suggestion that such an arrangement existed.

According to Butler, neither he nor the governor had been promised any payment, compensation, commission, kickback, or financial return of any kind from the fees to be paid to Entellus or any other party involved in the transaction.

He vehemently denied that any discussions had taken place regarding personal compensation tied to the deal and maintained that his involvement was solely in his capacity as the Governor's Executive Advisor on Finance.

BACKGROUND

The investment comes at a time when many of the ARPA funded projects are in danger of not being completed by their December 31, 2026 deadline. If this occurs, the money still held in the ARPA account must be returned to its source, after  reconciliation of course, to the federal government. The incomplete projects would then have to be finished with local or other resourced funds.

In January 2026, the Director of the ARPA Oversight Office reported to the Senate Budget and Appropriations Committee that $134.3 million remained of the ARPA funds, according to House Rep. Fagaima Larry Sanitoa. It is unknown how much exactly remains, as of Nov. 2026.

In the meantime, the governor  requested help from the US Treasury Department for a 6-month extension of the deadline, in October, while Fagaima asked Congresswoman Uifaatali Aumjua Amata this month for urgent assistance to extent the deadline for the ARPA projects also.