Pago Pago, AMERICAN SAMOA — Senators, during the Budget and Appropriations Committee hearing yesterday morning, were told of the $4.4 million that was transferred to the Wells Fargo Bank last year, for which $100,210 is still unaccounted.

They were also told of the involvement of the Federal Bureau of Investigation (FBI) in the matter and that they were working together with the American Samoa Government (ASG) in trying to recover the missing money.

Testifying before the committee was ASG Treasurer Malemo Tausaga who explained that $957,192.00 was returned on August 25 last year and $3.4 million was received by ASG on December 12, 2023.

He presented a copy of a check of $3.4 million from the Well Fargo Bank as proof.

Committee Chairman Senator Utu Sala Poasa asked Malemo if there was a reason why the bank was holding the $100,210 and theTreasurer answered that according to the FBI, this was the amount that was missing from the whole amount.

He stated that if the whole amount of $4.4 million had been there when the FBI investigated the matter, the whole amount would have been returned by now.

Utu then asked if there had been correspondence between ASG and the Wells Fargo Bank concerning the funds in case the missing funds were in fact used to pay some sort of fee incurred by the transfer.

Malemo however did not know if there was a fee, but he stated that he thinks that the missing funds may have been stolen by the person or people who had planned and sent the fake resolution emailed to his office.

As previously reported by media when the matter first surfaced last year, the $4.4 million was transferred from an ASG account at the Territorial Bank of American Samoa (TBAS) based on a resolution approved by the LBJ Hospital Board of Directors, emailed to Treasury.

It was then later found that the resolution, which had the LBJ Hospital letterhead, authorizing the transfer was fake, but by then, the transfer had already been made.

Senator Utu asked the Malemo if communication between his office and the Wells Fargo Bank was still ongoing so that ASG would be clear on the latest developments in efforts to regain the missing funds.

Malemo answered that it was TBAS who communicated with off-island banks where funds are transferred, and then TBAS informs ASG on whatever information is required.

Utu then asked TBAS Acting President and CEO Owen Peery who was the other witness if the originator of the funds can communicate directly with the bank where his funds are transferred.

Peery replied that when one of their customers transfers money to an outside bank institution, there is no communication between the third party (customer) and the receiving financial institution.

He explained that the owner of the Wells Fargo Bank account the funds were transferred to could not be ascertained because it was Wells Fargo protected and privileged information.

He clarified that Treasury had authorized designated individuals who can access ASG accounts online to facilitate transfers, and TBAS did verify the transaction with Treasury because of the amount involved.

Senate President Tuaolo Manaia Fruean was brief and direct when he addressed the witnesses.

He stated that this was a lot of money and many members of the public were disgruntled with this whole affair, especially how it came about.

Tuaolo said that he does not have much to say and he warned the government treasurer not to take offense at his question, then he asked Malemo if he had used any of the missing funds. The treasurer said no.

Senator Satele Lili’o also asked Malemo not to take offense at his questions, then he asked him if he had a construction business that is contracted by the government. Malemo answered no.

Satele then asked, if he was in partnership with a company that is being contracted by the government, and Malemo again replied no.

Senator Satele then asked if there was any truth in posts on social media about travel by him and his wife costing almost $30,000 for a trip.

Malemo said he takes official trips on ASG business and also for the Retirement Fund and that he receives per diems for these trips. 

The Senate hearings continue tomorrow.