Project Nemo: StarKist & COS Samoa Canneries Might Merge ff

American Samoan Congressman Faleomavaega Eni Hunkin revealed to the federally appointed minimum wage committee, that anonymous allegations were sent to him in a letter saying that the two tuna canneries in American Samoa are secretly planning to consolidate their operations in American Samoa.

”The objective of this plan will be to substantially reduce tuna production, which will allow the companies to increase prices,” the letter said in part. “The effect will be closure of one of the two tuna canneries in Samoa and the elimination of more than 2,000 jobs.”

Called “Project Nemo”, the letter alleges that the two companies have agreed to create a third, "neutral" company to operate the tuna canneries in the territory, producing canned tuna exclusively for Chicken of the Sea and StarKist. The letter, dated May 27 and addressed to Faleomavaega and copied to Gov. Togiola Tulafono, US Department of Justice (DOJ), US Federal Trade Commission (FTC) and Samoa News, went on to name officials of Chicken of the Sea and StarKist who are allegedly involved in the consolidation plan as well as the person who will oversee the new venture.

Faleomavaega told the wage committee that he is “distributed” by the allegations in the letter and noted that while he cannot and will not act on an unsigned letter, he will take steps to forward it to proper officials at FTC and DOJ, according to a copy of his testimony.

The letter is signed ‘A Friend of the Mermaid’.

The Congressman said the letter is included as an attachment to his written testimony before Special Industry Committee No. 26 and should anything ever come of this, the record of the matter is on file. He also said he hopes that the two canneries, “under oath” will deny before the committee “any knowledge of a plan to reduce American Samoa's production or to increase prices.”

COS Samoa Packing general manager, Herman Gebauer said Friday that he had no comment at this time, as the matter is being referred to corporate office for review. StarKist Samoa said that any comments to media inquiries must come from their corporate office and by afternoon, there was still no official statement from the company.

A spokesperson for DOJ could not confirm whether or not the agency has received such a letter but noted that this type of issue is usually forwarded to the Antitrust division for a review and follow-up.