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Pago Pago – American Samoa
Last Tuesday, after postponing the first review on Monday, the Government Treasurer, Mr. Malemo Taosaga, and the Director of the Budget Office, Ms. Catherine Saelua, appeared before the Senate and House of Representatives Appropriations and Budget Committees to discuss the FY2025 budget.
The review was delayed from Monday because lawmakers and government witnesses did not agree on an estimate of $165,907,000 in domestic revenue, one of four funding sources in the budget that was introduced.
The other three funding sources include Federal Special Grants – $282,683,500 million; Required Efforts – $274,463,000 million; and Capital Improvement Programs at $106,296,670 million. Together, these four funding sources total $733,683,167 million, which is the projected budget for fiscal year 2025.
However, Senator Magalei Logovii, who has also been one of the government treasurers in the past few years, said that the amount of funds raised in the past nine months, but in his theory, the government will not be able to raise $165.9 million. It is expected for the fiscal year 2025. The actual recoverable amount held by Magalei is $139,728,596 million, or $140 million, but the amount that cannot be recovered is $165.9 million.
The vice-chairman of the committee, Senator Utu Sila Poasa, floated the idea of postponing deliberations from Monday until they share the government’s input and testimony to produce another achievable budget. In Utu’s view, the budget cannot be made based on uncertain assumptions, a situation that needs clarification.
Senators Malaepule Saite Moliga and Solai Tuipine Fuimaono supported Utu’s argument to end the hearing on Monday but to give time to Utu and Honourable MP Vailoata Amituanai, who chairs the Budget and Allocation Committee of both houses, to negotiate for the inclusion of local collections in the budget for the region.
The Speakers of the House of Representatives and the Senate reminded in the government’s evidence that the reason why local collections in the fiscal year 2024 budget reached $165 million was due to an increase of $22 million.
The Speaker of the House of Representatives, His Excellency Savali Tallawo Ale, said there was a need to have a budget that was achievable and there was a need to address the issue of local collections, otherwise, when they pass an amount that is unachievable and could affect the work and activities of government.
Savali also expressed regret over the decision made by the chairmen of the two committees in relation to the budget, insisting that it was the right of the House.
When the vote on the postponement of the case came, many lawmakers joined the idea of stopping the hearing on Monday. The two sides also reached an agreement that the chairmen of the committees of both chambers will meet with the finance chief and the director of the budget office to negotiate on the matter.
However, the government’s witnesses left the parliamentary chamber after the hearing that morning.
During the review held the next day, Mr. Utu announced that his meeting with the treasurer and the director of the budget office was not yet forthcoming, which was confirmed by the vote of lawmakers on Monday.
Utu said this was a situation that had to be pursued because many members of the Mauta Council of Elders had already made a decision and that the meeting would take about five minutes to convene before resuming deliberations of the chapter.
Utu also spoke about the government using $36 million without the council’s approval, which was a past issue.
However, if the amount collected locally is not enough to meet the $165.9 million mentioned in the government budget, the remaining $22 million is not expected to be used to fill the six areas of the budget, but to fill the budget for this fiscal year 2025 has passed.
Utu said that this is why the government budget is high because they keep filling up the areas where the poor have strength with extra funds and this happens every year (fiscal year). He decided to put an end to this.
He reminded again that according to the law, all revenues outside the fiscal year 2025 budget cannot be used for any project before they are passed and allocated by the legislature.
Utu said the difference is the $165.9 million the government expects to receive from local funds and the $139.73 million the committee believes it can raise.
If the government does not meet their forecasts, it will not stop using the $22 million. But all rules and regulations must be followed before we can move forward with a clear mind.
When the government finance minister was given the opportunity to speak, Malemo said he had no further comment but now that the proposed 2025 government budget has been submitted to the American Samoa Legislative Assembly, he paid tribute.
Utu asked Malemo if he was willing to join the group as he explained it or if he was willing to proceed with the budget that had been submitted.
Malemo spoke again and as he said before, the draft government budget for the 2025 fiscal year is now before lawmakers and whatever changes the parliament wants to make, they will accept.
Therefore, Utu announced a review of the fiscal year 2025 budget starting from the Budget Office.
According to Catherine Saelua, director of the Budget Office, their budget amount is $1,175,000.
Personnel – $925,000; supplies – $30,100; contract services – $50,000; transportation – $35,000; equipment – $60,000; and other – $70,000.
The total number of employees is 14.
Magalei asked Saelua a question about how many vehicles their office has. Saelua replied that they have three vehicles. Magalei filed a motion to pass the office budget and be able to send witnesses.
The Senate President doubled down on the idea and said staff numbers have not changed from last year.
The proposed budget for the Finance Office was then considered, which Malemo said was the same amount as in fiscal year 2024, $11 million.
Malemo disclosed that their office also has three staff members, including an assistant secretary and two Customs office staff members.
Utu asked if there was a “Comptroller General”, to which Malemo replied that there was no “Comptroller General” at the moment, but that the opportunity was announced every year.
The finance director expressed the importance of the job opportunity, which offered a salary of more than $200,000. He also mentioned that a person had interviewed for the position last year and that person had accepted the position, but was rejected again at the last minute due to unavoidable complications.
Utu also expressed the importance of this job opportunity and the need for the Finance Office to find someone qualified and able to oversee the financial responsibilities of the office, especially federal funds.
Other offices and departments whose budgets were reviewed yesterday included the Police Service, the Office of Samoa Affairs, the Governor’s Office and the Attorney General’s Office.
A review by Samoa News of the government’s proposed budget for the 2025 financial year does not appear to include $36 million that was used by the government without any consent, with those funds becoming additional funding for the 2024 financial year.
It is not reflected in additional funding for fiscal years 2024, 2023 or 2022.
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