“Since Fono members were already in telework capacity prior to COVID-19 due to the ongoing constriction of the legislative building, we believe the stipend payments of $20,000 and $10,000 respectively, are unrelated to the COVID-19 health emergency.”
That’s a statement from Richard Delmar, Deputy Inspector General of the US Department of Treasury in a July 14 letter to ASG Treasurer Ueligitone Tonumaipe’a.
A meeting between Tonumaipe’a and executive assistant Lulu Barber and the US Treasury Inspector General’s Office took place on July 10, four days after the checks were distributed tor representatives and senators by the Speaker and Senate President respectively.
The letter from Mr Delmar to Tonumaipe’a was to follow up on some points discussed at their meeting.
According to the US official it was confirmed at the meeting that direct payments were issued to members of the Fono from Coronavirus Relief Fund proceeds to support members tele working from their homes.
It was also noted that prior to the COVID-19 public health emergency, the Fono building had been under construction and lawmakers were using other facilities such as the Fono guest house and Lee Auditorium to meet and hold hearings. Additionally Fono members were already teleworking.
Mr Delmar pointed to guidance for State, Territorial, Local and Tribal Governments for use of the relief funds. Specially that payments from the Fund may only be used to cover costs incurred during the period from March 1, 2020 to December 30, 2020.
“State, local or tribal governments may use payments from the Fund only to cover previously unbudgeted costs of necessary expenditures incurred due to the COVID -19 public health emergency during the covered period.”
The deputy inspector general also cited from the Frequently Asked Questions (FAQ) by US Treasury concerning use of the funds.
“Expenditures paid for with payments from the Fund must be limited to those necessary due to the public health emergency. As such unless the government were to determine that providing assistance in the form of a stipend is an administrative necessity, the government should provide such assistance on a reimbursement basis to ensure as much as possible that funds are used to cover only eligible expenses.”
Mr Delmar said, “Since Fono members were already in telework capacity prior to COVID-19 due to the ongoing construction of the legislative building, we believe the stipend payments of $20,000 and $10,000 respectively, are unrelated to the COVID-19 health emergency.
“In fact it was noted that one representative returned the payment while another senator donated the payment to a hospital. There appears to be inconsistencies in the interpretation of Treasury’s Frequently Asked Questions.”
The ASG Treasurer was told “Accordingly we request that payments issued to Fono members are returned to the American Samoa Government for future uses related to addressing the COVID-19 pandemic. To the extent that Fono members have already used payments, our office will seek recoupment of those funds in accordance with the CARES Act. As they relate to future telework due to the ongoing health emergency for individuals, not in a telework status prior to the COVID-19 emergency, payments to individuals should be on a reimbursable basis to ensure that the funds are used to cover only eligible purchases that support telework and receipts for such purchases must be maintained.”
When KHJ News first interviewed Governor Lolo Moliga about the payments he said that the money will go towards a lease of Sadie’s by the Sea to be used as lawmakers officers.
Mr Delmar referred to the lease in his letter to Treasurer Tonumaipe’a.
He wrote that although American Samoa had not used its Coronavirus Relief Fund proceeds to execute the $390,000 lease with the hotel as of July 10, “it is unclear how this lease for office space is related to the pandemic.”
He pointed out that other facilities were being used by legislators to hold hearings, and they were already teleworking prior to the pandemic as the Fono building was under construction.
FAQ by the US Treasury addresses leases that are necessary for COVID-19 uses: “A government should not make prepayments on contracts using payments from the Fund to the extent that doing so would not be consistent with its ordinary course policies and procedure.”
Mr. Delmar told the ASG Treasurer that before any payment for the Sadies by the Sea lease is executed, Tonumaipe’a must provide the Treasury Office of Inspector General with clarification and other support on how this lease related to the COVID health emergency and meets the use of funds under the CARES Act.
“This should include a written explanation of how planned uses of the leased office and meeting spaces for Fono members will differ from the home telework and the use of other facilities for hearings that have been ongoing prior to the COVID-19 pandemic.”
The deputy Inspector general also addressed the $10,000 given to the villages of Leone, Pago Pago, Nu’uuli and Faleniu/Mesepa for village aumaga enforcement.
Photo: Rep Andra Samoa
