The Senate Select Investigative Committee learned Wednesday from Treasury officials that more than $100,000 from ASG’s General Fund was used to make up the total amount due to LBJ Hospital but which was erroneously transferred to Wells Fargo Bank.
The total amount that made its way to Wells Fargo based on what was later discovered to be a fake email was $4,474,207.09. Wells Fargo Bank has returned $4,373,997.02 leaving a balance of $100,210.07
But Treasury has already paid to LBJ Hospital the total amount that was erroneously transferred to Wells Fargo. And it was revealed during questioning by the Senate Select Investigative Committee that this amount was drawn from the General Fund.
Treasury is still working with the Federal Bureau of Investigations on getting the final amount from Wells Fargo.
It did not escape SSIC Chairman Senator Togiola Tulafono and Senate President Tuaolo Manaia Fruean that there was no appropriation authority given by the Fono for the expenditure from the General Fund.
Treasury’s Chief Accountant CarrieLee Magalei explained that what set off the transfer to Wells Fargo was an email from LBJ requesting an ACH payment.
Play Audiocarrielee
The payment for LBJ Hospital were $3.3 million reimbursement from Medicaid and $957,192.7 reimbursement from FEMA.
Committee Chairman Togiola and other senators found it incredible that there was no verification process and Treasury took the email seeking the transfer to Wells Fargo Bank at face value.
Play Audiocarrie-lee-2
Also at the hearing were Treasurer Malemo Tausaga, Deputy Treasurer Levi Reese, Accountant Akenese Lealamanua, and IT Manager Meko Aiumu.
