Pago Pago, AMERICAN SAMOA — Governor Pulaalii Nikolao Pula is appealing to the people of American Samoa to remain patient as efforts continue to finalize the controversial $10.1 million investment funded by interest earnings from the American Rescue Plan Act (ARPA).

The investment was among several topics discussed during a press conference held yesterday afternoon — only the second such media briefing since Pulaalii took office. The governor also addressed the status of ARPA-funded projects, the recently established council overseeing opioid settlement funds, reductions in Medicaid funding, ongoing anti-drug initiatives, and spending reductions made by the Fono to the Fiscal Year 2027 Special Programs budget.

While the press conference did not reveal any major developments regarding the investment itself, administration officials disclosed that legal representatives for McKinley Beech Tree (MBT) are now leading discussions with officials in the United Arab Emirates in an effort to complete the transaction.

According to the governor, the American Samoa Government's participation in the investment is expected to generate approximately $100.1 million through a series of tranche payments once the transaction is completed.

"The American Samoa Government's initial participation in the $10.1 million investment is expected to yield $100.1 million through tranche payments," Pulaalii said. "The funding is contingent upon the United Arab Emirates transmitting capital investment funds to McKinley Beech Tree in Dubai."

The governor explained that MBT Executive Director Gregory Burkholder has engaged legal counsel to facilitate communications with parties in the UAE and help move the funding process forward.

Pulaalii emphasized that the proposal is about more than a financial return.

He said the transaction could open the door to a broader relationship with MBT that may attract additional private investment into American Samoa.

"Beyond the immediate financial benefits, this transaction represents an opportunity to establish a lasting partnership with MBT," the governor said. "Such a relationship could bring additional private capital investments to American Samoa's infrastructure, economic development projects, and long-term growth."

The governor also sought to address the political controversy surrounding the investment, urging residents not to allow the issue to create divisions within the community.

"I respectfully and humbly ask the people of American Samoa for your patience and understanding as the parties work toward completing this transaction," Pulaalii said. "While differences of opinion have emerged, we should not allow this matter to divide our Territory.

"The anticipated revenues and investments represent opportunities that could benefit all of our people, not just a particular branch of government or political interest."

Governor Pulaalii then turned to his Executive Advisor for Finance, Brett Butler, to provide a more detailed update on the status of the investment.

Butler said he remains in regular communication with Gregory Burkholder and that MBT's legal team is now directly engaged with UAE officials regarding the transaction.

"As of this morning, they have taken their legal counsel to discuss with the UAE the progress of this funding opportunity," Butler said.

According to Butler, the matter is currently in the hands of UAE investors, who are conducting their own review to ensure the proposed funding arrangement satisfies their requirements.

He said the involvement of legal counsel is intended to help facilitate the process and expedite the transfer of funds.

Members of the media questioned Butler about previous timelines he had provided for the arrival of the investment proceeds, noting that the anticipated returns had not materialized on the dates previously discussed.

In response, Butler reiterated that MBT's legal representatives are actively trying to move the process forward.

He said MBT has indicated that once legal issues are resolved and approval is received, the UAE funding could be transferred into MBT's Dubai account within approximately 72 hours.

"Once they do that, they've given us three days to get that investment from the UAE into the MBT Dubai account," Butler explained. "Once they receive it, they will notify us."

From there, Butler said, the funds would require an additional two to three days to reach the American Samoa Government's account at Zions Bank, depending on processing and transfer times.

For now, however, Butler acknowledged that officials are still waiting for a definitive funding date.

"As soon as we know that date, we will announce it publicly," he said.

The issue of insurance coverage associated with the $10.1 million investment also resurfaced during the press conference.

The governor was asked about testimony presented during recent Senate Government Operations Committee hearings. During those hearings, Butler stated that the investment was protected by insurance. However, officials representing insurance companies mentioned during the hearings reportedly testified that the American Samoa Government had not directly purchased insurance coverage for the transaction.

Asked about the apparent contradiction, Governor Pulaalii defended the administration's position.

"The people who testified in that hearing were the wrong people," Pulaalii said. "They were not involved with the insurance at all, although one of them may have been affiliated with a company connected to the transaction. The Fono, I'm sorry to say, was talking to the wrong people."

Butler was again called upon to clarify how the insurance coverage was structured.

According to Butler, the insurance arrangement was not negotiated directly between ASG and the insurers.

Instead, he said MBT handled that process through an insurance broker.

"The insurance was between ASG and MBT," Butler explained. "MBT engaged an insurance broker called First Gate, which then communicated with an insurer known as Trade and Merchant."

According to Butler, Trade and Merchant subsequently retained Southern Pacific Insurance Company to act as guarantor for the transaction.

He said the administration has provided the Fono with a policy certificate documenting the arrangement.

"But regarding the engagement itself, ASG did not directly communicate with those insurance companies," Butler said. "MBT worked through its broker, which coordinated with Trade and Merchant and Southern Pacific Insurance. That was the course of the transaction."

The investment remains under scrutiny following a series of Senate hearings examining both the legality of the expenditure and the safeguards put in place to protect public funds. 

A preliminary report was issued by the Senate Government Operations Standing Committee on October 8, 2026 and forwarded to the Senate President, with a more detailed final report expected to be issued before the end of October 2026. The preliminary report includes the standing committee’s recommendations for further actions to follow up with the investigation. Samoa News will report on the preliminary findings of the Senate Standing Committee and its recommendations in tomorrow’s issue.

Meanwhile, administration officials continue to express confidence that the transaction will ultimately be completed and that the anticipated returns will materialize once the funding process in the UAE is finalized.