Investigative report unearths American Samoa corruption

Updated October 29, 2009 08:05:08

A report aired by US television network CNN has described American Samoa's tsunami disaster as 'a man-made tragedy'. The explosive story says the local American Samoan government misused millions of US dollars, including funds for a tsunami warning system. The investigative report, which began screening yesterday, says the 34 American Samoan fatalities from September's tsunami could have been avoided.

Presenter: James Oaten
Speaker: Togiola Tulafono, Governor of American Samoa

OATEN: The September tsunami killed 34 people in American Samoa. But according to a report by US television network, CNN, some, if not all, of those deaths could have been avoided. The CNN report says the Department of Homeland Security awarded millions of dollars for disaster preparedness, including a tsunami warning system. But the funds were frozen after department inspectors alleged the American Samoan government was diverting funds for inappropriate uses. The 2007 Audit of State Homeland Security Grants Awarded to the America Samoa Government, says of the $US2.3 million given to American Samoa, $1.7 million was determined to be ineligible, unallowable or unsupported. Some of the questionable funds include the purchase of six flat-screen televisions for more than $25,000, $4,000 spent on leather chairs, $328,000 spent on vehicles not fitted with the agreed equipment, and $70,000 dollars on equipment that couldn't be accounted for.

Birdsall Alailima was the director of America Samoa's territorial office of Homeland Security from 2003 to 2007. He told CNN reporter Drew Griffen over thirty sirens were to be erected throughout the territory. These sirens could be activated by the push of a single button. But Mr Alailima told CNN the money for the warning system went missing.

Governor of American Samoa, Togiola Tulafono, told CNN there was a study into the system, but not a plan to build it.

TULAFONO: I was trying to get verification of what happened to that application, but I wasn't able to get the definite information.

OATEN: The CNN report says American Samoa would have access to the frozen funds if it agrees to pay back some of the money it misused. Mr Tulafono told CNN he has tried to correct the problem but to no avail.

TULAFONA: All I'm saying to you is that we've tried to work with them and we've tried to get some partial releases, but so far it hasn't happened. I say work with us. We're not bad people, we're not crooked people.

OATEN: CNN says the FBI is investigating allegations of corruption. The ABC was unable to contact the Governor of American Samoa. No one was available for comment from the United States Department of Interior, which oversees American territories. It has, however, issued a public statement saying a new position had been created within the Department to address issues of corruption. It says this role has been given to Tony Babauta, a native of Guam.

STATEMENT: Mr Babauta has quickly begun to implement an agenda of careful oversight, reform measures, and inter-agency coordination to increase accountability of federal dollars. Taxpayers and citizens deserve to know that federal investments are measurably improving the quality of life - and safety - of our fellow Americans in these insular areas.