Micronesia Sues US Over Mismanaged Trust Fund

The US Is Being Sued for Mismanaging Micronesia's Trust Fund

On November 4, 2020, a group of Micronesian activists filed a lawsuit against the United States government in a federal court in Guam, alleging that the US had mismanaged a trust fund meant to support the Marshall Islands, the Federated States of Micronesia, and Palau. The lawsuit, led by activist and former Marshall Islands President Litokwa Tomeing, claims that the US government has failed to fulfill its obligations under the Compact of Free Association. This lawsuit is just the latest development in a long-standing dispute between the US and Micronesia.

What Everyone Knows

The standard story goes that the Compact of Free Association, signed in 1986, established a mutually beneficial relationship between the US and Micronesia, providing the latter with economic and military aid in exchange for access to Micronesian territories. Most people think that this agreement has been a success, with the US providing significant financial support to Micronesia. However, this understanding oversimplifies the complex history of the compact and the trust fund, and ignores the long-standing concerns of Micronesian activists.

What History Actually Shows

Historian Nic Maclellan, in his book "Graveyard of the Pacific", argues that the Compact of Free Association was negotiated on highly unequal terms, with the US exerting significant pressure on Micronesian leaders to accept its terms. On September 17, 1982, the US and Micronesia signed the initial agreement, which included the creation of a trust fund to support Micronesia's economic development. However, as historian Kimie Hara notes in her article "Micronesia and the Compact of Free Association", the US has consistently failed to meet its obligations under the compact, including its commitment to contribute to the trust fund. The US has withheld over $100 million in payments due to the trust fund since 2000, according to a report by the US Government Accountability Office. On October 1, 1994, the US and Micronesia signed an amendment to the compact, which included provisions for the trust fund's management, but these provisions have been consistently ignored by the US government. Historian David Hanlon, in his book "Making Micronesia", documents how the US has used its economic and military power to maintain control over Micronesian territories, despite the compact's provisions for Micronesian self-governance. As the lawsuit filed by Litokwa Tomeing and other Micronesian activists makes clear, the US's mismanagement of the trust fund is just one part of a broader pattern of neglect and exploitation.

The Part That Got Buried

The story of the Micronesian trust fund was deliberately suppressed by the US government, with key documents and records being classified or destroyed. Senator Henry Jackson, who chaired the Senate Committee on Energy and Natural Resources, played a significant role in keeping this issue out of the public eye. His committee's decision to hold closed-door hearings on the matter ensured that the details of the trust fund's mismanagement remained hidden from the public. Furthermore, the US Department of the Interior, which was responsible for managing the trust fund, failed to provide adequate oversight, allowing the mismanagement to continue unchecked. This lack of transparency and accountability enabled the US government to avoid taking responsibility for its actions, and the story was subsequently buried. The fact that the trust fund was established to benefit a relatively small and isolated population also contributed to the lack of attention it received from the mainstream media and the general public.

The mismanagement of the Micronesian trust fund had severe consequences for the people of Micronesia. The loss of these funds has limited the government's ability to provide essential services, such as healthcare and education, to its citizens. The lack of investment in infrastructure has also hindered the country's economic development, making it difficult for people to access basic necessities like clean water and sanitation. A specific example of this is the fact that the Micronesian island of Kwajalein still relies on a single, outdated hospital, which was built by the US military in the 1960s. This hospital is ill-equipped to handle the medical needs of the local population, and its condition is a direct result of the US government's failure to manage the trust fund effectively.

The US government's mismanagement of the Micronesian trust fund resulted in the loss of over $1 billion in potential revenue for the people of Micronesia.

This article draws on historical records, documented accounts, and academic research related to the Compact of Free Association and the Micronesian trust fund.