Pago Pago, AMERICAN SAMOA — Last week, the Senate Economic Development Committee unanimously approved Brett Butler as a member of the Board of Directors for the American Samoa Economic Development Authority (ASEDA) with a decisive 17-0 vote.

Senator Magalei Logovii, acting chairman of the Board, expressed his gratitude to Governor Pulaalii for appointing Butler to assist with the increasing workload. He noted that Butler’s appointment completes the Board’s membership, enabling them to appoint a chairman and alleviate the pressure he has been facing.

Magalei underscored the critical role of the Board in collaborating with government funding sources, emphasizing that Butler’s expertise will be invaluable to their efforts. Butler succeeds former Attorney General Fainu'ulelei Falefatu Alailima-Utu, whose term was the only one to have expired.

Senator Utu Sila Poasa also praised Butler’s achievements, highlighting that he was the first Samoan to serve as the general manager of StarKist Samoa. Utu thanked Butler for returning to serve the Territory and expressed appreciation to the governor for appointing him. He reiterated his full support for Butler’s appointment, emphasizing that Butler possesses all the necessary skills and experience for this important body.

Senator Togiola T.A. Tulafono expressed concern about the absence of a legal expert on the Board following the removal of the former Attorney General. He emphasized that a legal background is crucial, given the significance of the issues the Board addresses. Tulafono stressed that sound legal advice is imperative to guide the Board’s decisions effectively, warning that the consequences of a wrong decision could be far-reaching and have a detrimental impact on the government.

Togiola asked Butler if they had discussed this with the Governor and Lt. Governor. Butler explained that the matter had been thoroughly discussed, and his appointment was deemed feasible due to the presence of Terry Van Eaton, an attorney, on the Board. He added that should he choose to step down in the future, the plan is to bring the Attorney General onto the ASEDA Board to ensure continuity and maintain the necessary legal expertise.

Togiola also expressed concern about the sizable projected deficit which the governor spoke about in his address to the Fono, and whether the government would be able to meet the bond repayments. Butler gave a positive response, "In regards to the ASEDA debt service, I am aware of the excellent debt service that this government is in with the ASEDA bonds, which is very reassuring for the government. I am aware that we have a lot of bills to pay in the government and the good news from the Treasurer yesterday is that the second quarter collections came in very favorable versus first quarter.

"We still have a lot of work to do paying debt to our vendors but we developed a strategy to make sure we get back in the green versus the red with the money we owe. In regards to the bonds, from what I've seen and with what I've discussed with the executive secretary, it's in excellent shape."

Togiola concluded by commending Butler on his appointment and recognizing his remarkable achievements. He highlighted that Butler had previously been chosen to lead an institution with a workforce second only to the government during his tenure in the private sector — a testament to his leadership and expertise.

He urged Butler to approach his new role with diligence, emphasizing that the development of American Samoa rests heavily on the Board’s efforts. Togiola also underscored the critical responsibility entrusted to ASEDA in managing the repayment of government debts. He stressed that the government has placed its full faith and credit in the Board, warning that any default could result in the sale of government assets to settle the debt.

ASEDA Acting Chairman Senator Magalei assured the hearing that bond repayments are up-to-date, confirming that the March repayment has already been made. He explained that the government transfers $1 million each month to Wells Fargo Bank, from which the bond repayments are subsequently withdrawn.

BACKGROUND

Samoa News should point out that a Senate hearing on the status of payouts to ASG employees included Treasurer Donald Kruse reviewing for the senators the state of current revenue collections, where he confirmed what Butler noted during his confirmation testimony to become a member of the Board of Directors for the ASEDA — that collections in the 2nd Quarter are doing well.

However, it was noted by some senators that while 2nd Quarter collections seem to be doing well, there are two issues still on the table: How much debt does the ASG exactly have (not just what’s entered into the ASG accounting system) and is the 1st Quarter deficit covered by 2nd Quarter collections, as well as these collections still meeting the ‘budgeted’ 2nd Quarter collections total.