Pago Pago, AMERICAN SAMOA — The Senate has unanimously approved legislation creating the Anti‑Kickback Prohibition Act of 2026, a measure aimed at closing long‑standing gaps in procurement oversight and establishing a uniform, enforceable standard across all government entities.

According to the bill’s preamble, while certain anti‑kickback protections already exist in administrative rules and within the Procurement Act, no comprehensive, territory‑wide prohibition currently governs kickbacks, gratuities, or referral fees across all agencies and public corporations. Lawmakers say the absence of a unified standard has left room for inconsistent practices and vulnerabilities in government contracting.

The bill states that it is therefore necessary to consolidate, strengthen, and expand existing protections to ensure that government agencies, vendors, contractors, and subcontractors operate under a single, clear, and enforceable framework.

The Act establishes broad prohibitions covering every stage of government contracting. It specifies that no person may provide, offer, solicit, request, or accept any kickback, gratuity, or referral fee connected to the award of a government contract, the extension, modification, or renewal of a government contract, any procurement‑related recommendation, evaluation, or decision,  and any official action taken by a covered individual.

The bill further prohibits indirect payments made through intermediaries, affiliates, subcontractors, or related parties for the purpose of influencing government action.

KEY CONCEPT: KICKBACK VIOLATIONS

Individuals are also barred from requesting or accepting any kickback or gratuity from vendors, contractors, subcontractors, or any person seeking or performing government work.

Subcontractors are explicitly prohibited from making payments to contractors or other subcontractors to secure a subcontract award or favorable treatment under a government contract.

To strengthen transparency, the Act requires all bids, proposals, and contract submissions to disclose any commissions, fees, or compensation arrangements with third parties, any ownership, familial, or financial relationship with a covered individual, any subcontractor or intermediary receiving compensation related to the bid, and any contingent fee arrangement.

Failure to disclose required information may result in disqualification, contract termination, suspension or debarment, and civil penalties.

The bill includes provisions for reporting suspected violations and offers whistleblower protections to individuals who come forward with information.

Penalties for violations include contract termination, suspension or debarment, a $25,000 fine per violation, recovery of improperly obtained funds, voiding of contracts secured through prohibited conduct.

These measures aim to deter misconduct and ensure that government procurement processes remain fair, transparent, and accountable.

The bill, sponsored by Senator Togiola T.A. Tulafono, now moves to the House of Representatives for review.

If approved by both the House and the Governor, the Anti‑Kickback Prohibition Act of 2026 would take effect 90 days after the Governor signs it.