Pago Pago, AMERICAN SAMOA — Questions about who controls spending decisions at the American Samoa Telecommunications Authority (ASTCA) took center stage Wednesday as the Senate Government Operations Committee continued its investigation into ASTCA's involvement in the A250 celebrations.

The hearing, chaired by Senator Togiola T.A. Tulafono, brought together current and former ASTCA board members, along with ASTCA Chief Executive Officer Folasaitu Sorepa Thomas, for nearly two hours of testimony focused on how more than $1 million was spent on activities connected to the event.

At the heart of the committee's inquiry was a simple question posed by Togiola: If the Fono never specifically approved spending for the A250 celebrations, who authorized the expenditure?

Togiola told witnesses that the committee had carefully reviewed ASTCA's Fiscal Year 2026 budget and found no specific request for funding related to the A250 celebration.

"In fact, A250 was not mentioned in the budget," Togiola said.

Folasaitu responded that while the event was not specifically identified in the budget documents, the spending came from funds already approved by the Legislature under ASTCA's Corporate Events account.

According to the CEO, ASTCA's FY 2026 budget included approximately $3.5 million for various operational purposes, including $2.2 million for handsets and supplies, $465,000 for replenishment of stock and supplies, and about $900,000 earmarked for corporate events. 

She explained that the A250 activities were funded from this corporate events allocation and not from ASTCA's separate marketing and sales budget.

She further testified that total spending related to the event exceeded $1 million. Of that amount, ASTCA contributed approximately $344,000, while the Reid Group contributed a similar amount. An additional $200,000 came from opioid settlement funds and was used to support a cricket competition held during the celebration.

The committee also explored ASTCA's partnership with the Reid Group.

Togiola questioned whether the agreement involved promoting commercial products and asked what products were featured during the festivities.

Folasaitu acknowledged that a new beer product was launched during the concert component of the celebration.

The revelation prompted Togiola to question whether there was a contradiction between using opioid settlement funds in connection with an event that also featured the promotion of alcohol.

The CEO maintained that the opioid settlement funding was used only for the cricket competition and was entirely separate from funding used for the concert and related activities.

Much of the hearing centered on what senators viewed as a lack of clarity regarding the relationship between ASTCA's Board of Directors and its chief executive officer.

Togiola repeatedly questioned whether the board had reviewed the spending plan before funds were committed and whether board members had an opportunity to provide input on how the money would be used.

Folasaitu testified that she informed the board about the overall plan but intentionally withheld detailed information regarding specific expenditures.

She explained that some board members had business interests that could potentially create conflicts of interest because their companies competed directly with businesses affiliated with the Reid Group.

According to her testimony, board member Ella Gurr operates a beverage-importing business, while former Board Chairman Avamua Dave Haleck's family business represents Nissan vehicles in the territory. Both businesses, she said, compete with products and brands distributed by GHC Reid & Co., including Vailima beer, Coca-Cola products, and Ford vehicles.

Togiola then asked whether withholding those details had been her own decision.

"Yes, sir," Folasaitu replied.

The exchange led the chairman to ask whether the CEO effectively possessed more authority than the board itself.

Folasaitu defended her actions by pointing to a 2018 executive order issued by Governor Lemanu P.S. Mauga.

According to the CEO, the order grants ASTCA management authority to spend funds that have already been approved through the budget process without obtaining additional approval from the board.

She emphasized that the board's primary responsibilities include hiring the CEO and providing governance oversight, while management decisions and personnel matters fall under the authority of the chief executive officer.

Former Board Chairman Avamua Dave Haleck confirmed that board members had raised concerns about the spending and sought legal guidance from ASTCA attorney William Ledoux.

According to Avamua, the attorney advised the board that the CEO possessed the spending authority outlined in the executive order.

As a result, board members concluded that they had limited ability to prevent expenditures once the funds had been approved through the budget.

Nevertheless, Avamua said he advised the CEO to exercise caution and use the money responsibly.

Togiola remained unconvinced.

Throughout the hearing, he repeatedly pressed witnesses on whether the board had any practical power to stop questionable expenditures or intervene when they disagreed with management decisions.

Avamua acknowledged that one of his final actions before stepping down as board chairman was initiating resolutions urging the Governor to amend the executive order and restore stronger oversight authority to the board.

His testimony suggested that board members believed changes were needed to clarify governance responsibilities and strengthen accountability within the agency.

The hearing eventually evolved into a broader discussion about ASTCA's status as a semi-autonomous agency.

Togiola argued that the testimony indicated the board's authority had been significantly diminished while operational control had been concentrated in the CEO's office.

He further suggested that because the CEO serves as a Cabinet member and reports directly to the Governor, ASTCA functions more like a government department than an independent public corporation.

The senator pointed to a previous controversy involving the use of approximately $110,000 in ASTCA funds for child support payments related to former CEO Chuck Leota. Togiola recalled testimony during an earlier hearing indicating that the board had opposed the expenditure, but that approval was ultimately obtained from the Governor.

According to Togiola, that situation raised further questions about where ultimate decision-making authority resides within the agency.

Folasaitu pushed back against suggestions that the board has no oversight role.

She testified that the board receives monthly expenditure reports and reviews management's financial activities after expenditures have been made. Similar reports are also submitted to the Governor.

When pressed by Togiola about the extent of the board's authority, the CEO explained that board members are empowered to review reports, evaluate compliance with laws and policies, and hold management accountable through that process.

She added that while the CEO reports to both the board and the Governor, the executive order establishes the framework under which those responsibilities are carried out.

Senator Magalei Logovii raised the question concerning the process for selecting and removing ASTCA's chief executive.

Avamua testified that the Board of Directors selected Folasaitu from a pool of about half a dozen applicants, eventually narrowing the field to two or three who were shortlisted, before making its choice.

Asked whether the board or the Governor has the authority to remove the CEO, Folasaitu responded that if the board has the power to hire the CEO, it would logically also have the authority to terminate the CEO's employment.

The hearing also touched on the circumstances surrounding the dissolution of ASTCA's former Board of Directors and whether that action should have affected the status of the agency's chief executive officer.

Senate President Tuaolo Manaia Fruean asked CEO Folasaitu whether she believed she should have been removed from her position when the Governor dissolved the previous board that had hired her.

In response, Folasaitu said she could not speculate on the Governor's thinking at the time. However, she acknowledged that there was an argument that her tenure should have ended when the board that appointed her was dismantled.

"I don't know what the Governor's thought process was," she said. "But I agree that I should have vacated the CEO position because I was hired by that board."

The exchange added another layer to the committee's ongoing examination of ASTCA's governance structure and the balance of authority between the Governor, the Board of Directors, and the CEO.

SEVERANCE  PAY AS CHILD SUPPORT PAYMENT

Senators also revisited a previous controversy involving the use of ASTCA funds to cover child support obligations owed by former CEO Chuck Leota.

Folasaitu explained that a check totaling approximately $110,000 had been made payable directly to the High Court of American Samoa rather than to Leota personally. According to the CEO, that decision was made in the interest of transparency and to ensure there would be a clear record of how the funds were used.

She testified that the court held the check for roughly 30 days and later subpoenaed her to explain the transaction and provide supporting documentation.

Senate President Tuaolo challenged that explanation, arguing that the unusual nature of the payment was likely what led the court to question the transaction.

According to Tuaolo, standard government procedure would have been to issue Leota his severance payment and allow him to settle his own personal obligations, including any child support arrears.

"The Chief Justice delayed the payment because this is not normal government procedure," Tuaolo said. "ASTCA should have simply issued Mr. Leota his severance check and allowed him to take care of his own affairs."

The Senate President further argued that concerns about documenting the payment did not justify having ASTCA make the check directly to the court.

"If you wanted proof that the payment was properly issued, Mr. Leota's signature on a severance check would have provided that record, unless the money was paid in cash," Tuaolo said. "Instead, ASTCA went through a process that effectively handled what should have been Mr. Leota's personal responsibility."
Tuaolo added that the circumstances surrounding the payment also explained why the former ASTCA board had objected to the transaction.

"I don't blame them," he said, referring to board members who had previously testified that they did not support using ASTCA funds in that manner.

Tuaolo then issued a stern warning to the ASTCA CEO.

"Folasaitu, slow down," he advised. "You're acting like the Secretary of War. Too fast. You should take heed of the Samoan saying, 'The plant that grows too fast will wither and die fast too.’”

LEADING WITH RESPECT & HUMILITY

Toward the end of the hearing, Senator Tuana'itau Malaki Togiola expressed disappointment over comments made by Folasaitu  during a recent interview on 93KHJ/ V103 FM, where she reportedly criticized lawmakers for questioning ASTCA's actions without first reading the laws governing the authority.

Addressing the CEO directly, Tuana'itau said her remarks were inappropriate and unfairly portrayed members of the Legislature in a negative light before the public.

"I was very disappointed when I heard you belittle and disrespect the integrity of the Fono on the radio while the entire Territory was listening," the senator said. "It was inappropriate and disrespectful because it reflected poorly on the members of the Legislature."

Tuana'itau acknowledged the CEO's educational background and professional qualifications but urged her to exercise greater caution when speaking publicly about elected officials.

"Everyone recognizes that you are a well-educated and highly qualified individual," he said. "But I encourage you to be mindful of what you say and who you are referring to because we are not children."

The senator emphasized that members of the Fono represent their families, villages, and constituencies, and take seriously the responsibility of serving the people of American Samoa.

"Fono members are leaders in their families and communities, and we carry with pride the integrity of those we represent," Tuana'itau stated. "Listening to you mock the Legislature was very saddening."

He went on to stress that intelligence, education, and professional success must be accompanied by respect and humility, particularly when dealing with public servants and elected leaders.

"It is admirable to have the knowledge and ability to lead government departments and agencies," he said. "But when respect and humility are absent, those qualities lose much of their value."

The comments reflected growing frustration among some senators over what they view as an increasingly strained relationship between ASTCA leadership and lawmakers, as the Senate continues its examination of the agency's spending practices, governance structure, and accountability mechanisms.