Chief Procurement Officer Frederick Ledoux says he was not involved in drawing up or review of an agreement between ASG and off-island companies McKinley, Beech Tree or MBT LLC. He was never called to any meeting to discuss agreements with any of this companies and neither did he review or approve any contracts or agreements with them.
Ledoux was testifying at a hearing of the Senate Government Operations Committee concerning the investment of $10 million of ARPA interest .
Committee Chairman Senator Togiola Tulafono said it’s the Committee’s understanding that all such contracts and agreements should be reviewed and approved by the Chief Procurement Officer and the Attorney General.
The Committee wanted to know if the agreement or contract was given to the CPO for review to ensure that it follows the law and the government is protected.
Togiola said the agreement that has been submitted to the Committee was signed by Brett Butler and not the Governor or the Attorney General. He asked the CPO if Butler has been authorized to sign government agreements and contracts. He expressed concern that the law was not followed to ensure protection for the $10.1 million in government funds that has been expended.
Ledoux said he was never informed of a contract with these companies and he was never asked to attend any discussions relating to the matter.
He said usually such contracts or agreements are routed to his office for his review after which he forwards them to the Attorney General. After the AG signs the agreement he will then give his approval.
He did not know if the AG was notified about the contract. He said he only heard Brett Butler’s comments on television and on the radio that he consulted the AG but she did not give her approval.
On the question of whether Butler has been given authorization to sign government contracts or agreements Ledoux said he has often told directors that he is the only one in the government that can negotiate contracts. He has told cabinet members they can negotiate contracts but should know that unless contracts are signed by he and the AG he will not honor them .
Ledoux said up to now he has not been given any information or held any discussion about the contract with the said companies.
Senate President Tuaolo Manaia Fruean asked if has discussed the contract with the Attorney General.
Ledoux said he has not talked with the AG concerning the contract. He stated that he was saddened with what has happened as he thought he had the Governor’s trust .
For now he is just doing his job and listening out as to what will become of the contract.
Tuaolo also asked if he has had any discussion with the Governor concerning the investment agreement and the CPO replied no.
Tuaolo told Ledoux he should not be sad, that he has spoken the truth.
Senator Magalei queried if an executive order was issued to authorize Butler to sign contracts. Ledoux said no executive order was issued to this effect and even if one was issued he would not approve it.
Senator Utu Sila Poasa asked the CPO if contracts for airport and port projects were routed to him for approval. Ledoux responded yes. Utu said his reason for asking this is because the contract with the investment company is for the purpose of raising capital to fund port and airport projects. He said it follows that the contract for the investment should be subject to approval of the Chief Procurement Officer.
Committee Chairman Togiola thanked Ledoux for his candid and honest answers and for explaining the Procurement Office’s role in government contracts and agreements. He complimented the CPO for being alert and firm to ensure that the law is followed.
