ASG $10 million investment is in the UAE, 1st return installment awaited
Pago Pago, AMERICAN SAMOA — Senators learned on Wednesday that the $10 million in interest earnings from the American Samoa ARPA Fund is currently being invested in the United Arab Emirates, according to testimony before the Senate Government Operations Committee.
The disclosure came from Brett Butler, Executive Advisor for Finance in the Governor’s Office, who appeared before the committee to answer questions about the administration’s handling of ARPA funds and related financial activities.
Butler was joined by ARPA Office Director Puiali‘i James Faumuina and Medicaid Director Louise Kuaea, who also provided updates on their respective program areas.
Committee Chairman Senator Togiola T.A. Tulafono opened the hearing by seeking confirmation of a reported $11 million account at Zions Bank under the name of the American Samoa Government. He said the funds represented interest earned from the ARPA allocations deposited with Zions as part of the territory’s federally funded COVID‑19 recovery program.
Togiola asked whether such an account existed and whether the administration had formally designated it for ARPA interest earnings.
Butler responded that he was not aware of a separate ASG account at Zions Bank containing $11 million. However, he acknowledged that he was aware of an account maintained by the Treasury Department that is used to deposit ARPA interest revenue.
Senator Togiola continued by asking how much money was in the ARPA interest account at the time the administration began exploring what Butler described as a “funding opportunity.”
Butler testified that the account held approximately $17 million at that time.
Togiola then asked who had signing authority over the account.
The Executive Finance advisor replied that the account signees were the Treasurer and the Deputy Treasurer. He went on to explain that between May and June 2025, the American Samoa Government entered negotiations with an independent broker, Entelles, which he said was responsible for bringing ASG and McKinley together for what he described as a funding opportunity.
Responding to Senator Togiola’s question about whether he personally knew anyone at Entelles, Butler stated that he did not.
Butler told senators that the investment proposal first surfaced when two retired Samoans living in Hawai‘i, both associated with the broker company Entelles, approached the ASG Hawai‘i Office in mid‑2025. The office then contacted him directly about the opportunity.
He said he spoke with them by phone, during which they outlined the proposal and its potential benefits. Butler testified that the pitch “sounded too good to be true,” and he made clear he would not bring anything to the Governor without a face‑to‑face meeting.
During one of his government trips, Butler met with the two individuals separately: Agnes Telles in Hawai‘i and Don Sa‘aga in California.
When Senator Togiola asked whether the pair were employees of Entelles, Butler said he was not sure if they were formal employees or contracted workers. He added that, in their discussions, both expressed a desire to support development in American Samoa.
One of the issues they raised, Butler said, was the need to modernize the Pago Pago International Airport, noting that Faleolo International Airport in Samoa had far more modern, state‑of‑the‑art facilities.
Togiola responded with a pointed remark, saying this was because “China loves Samoa, but the United States won’t give us enough money to improve our airport.”
After hearing the initial pitch and learning about the company, and what Entelles proposed bringing to American Samoa for further discussions. Butler said he felt the matter should not be handled directly by the Governor’s Office. Instead, he referred the proposal to the Board of Directors of the American Samoa Economic Development Authority (ASEDA), describing it as a potentially significant economic development opportunity for the Territory.
However, Butler testified that ASEDA did not support moving forward, telling him they needed more evidence of the project’s credibility before endorsing any action.
Senator Togiola asked whether Butler sought alternative avenues after ASEDA declined. Butler said his initial reaction was to abandon the project, given ASEDA’s lack of support.
But he said the proposal was revived after Vandy Agrawal, a senior member of Entelles whom Don Sa‘aga and Agnes Telles reported to, provided additional information about Entelles’ relationship with McKinley. Butler testified that Agrawal’s explanation convinced him to continue pursuing implementation of the project despite ASEDA’s reservations.
(Samoa News should point out that in the draft document of the Master Project Funding Agreement a Mrs. Vandana Agrawai would be receiving from ASG a funding facilitation fee equal to 10% of the applicable installment or tranche draw down, in consideration for funding coordination and placement services rendered under this Agreement.)
Butler testified that Vandy Agrawal argued McKinley was among the very few companies capable of providing non‑recourse funding, a structure in which the borrower is not personally liable beyond the pledged collateral.
He said Agrawal emphasized that the initial contract presented by Entelles was not a request for ASG to hand over money, but simply an agreement to advance to the next step — a meeting with McKinley’s legal team.
Togiola asked whether ASG had any formal agreement with McKinley for the investment of funds. Butler responded that, after discussions with the independent brokers, ASG agreed to sign the preliminary contract and meet with McKinley’s lawyers without releasing any money, in order to understand what the proposal meant for the American Samoa Government.
Following those discussions, Butler said the next step before releasing any investment funds was to meet directly with McKinley CEO Halen Bach. He stressed that no ASG funds would be released until he had a face‑to‑face meeting with Bach to understand who he was and what kind of venture ASG would be entering.
Butler said the opportunity arose unexpectedly when he traveled to Bangkok, Thailand, to attend a fuel suppliers meeting. While in Thailand, he learned that Bach was in Phuket, in the country’s southern region. Butler said he contacted Bach and asked if they could meet in Bangkok — and they did.
Butler testified that only after his face‑to‑face meeting with McKinley CEO Bach were investment funds finally released — but not directly to McKinley. Instead, he said the money was first transferred to an ESCO‑affiliated attorney in Leawood, Kansas, who served as a neutral intermediary representing both ASG and the McKinley parties.
According to Butler, the attorney’s role was to hold the funds in escrow until ASG received fraud‑insurance documentation from McKinley. He explained that the arrangement required McKinley to provide insurance guaranteeing the funds would be protected against fraud, and only after ASG verified that insurance would the attorney be given the green light to release the money.
Butler emphasized that this structure was intended to ensure no ASG funds were exposed until the promised insurance was in place, framing the escrow step as a safeguard built into the investment process.
Senator Togiola asked whether there was confirmation that ASG’s investment funds had been transferred to McKinley, and whether a formal contract — signed and delivered — outlined the terms between ASG and McKinley. Butler answered yes to both questions.
Togiola then referenced Acting Treasurer Carrie‑Lee Magalei‑Tulafono’s testimony from Tuesday, in which she stated that the transfer of investment funds required three signatures: hers, the Governor’s, and Butler’s. Those signatures authorized the movement of ARPA interest funds from Zions Bank to Timothy Stein, the ESCO‑affiliated attorney in Leawood, Kansas, who served as the escrow inte