Written Testimony of Wendy L. Doromal, July 14, 2011 Hearing

July 28, 2011

The July 14, 2011 hearing on U.S. P.L. 110-229 and H.R. 1466 was disappointing. At this hearing (and at all of the House hearings that have been held in Washington, DC since 1999 to address issues related to CNMI immigration and nonresident workers) is that there was a conspicuous absence of any advocate or representative from the nonresident worker community on the witness panel. Even though the nonresidents make up an estimated 80 to 90% of the private sector workforce and a majority of the CNMI's adult population, their voice at the hearing was and will remain silent except for written testimony that has been submitted. This fact diminishes the credibility of this hearing and any other hearing where issues regarding the nonresident workers are discussed and no nonresident workers are invited to testify. This minimizes their importance and vital contributions to the CNMI.

Every time that a congressional committee or subcommittee holds a hearing addressing with the status or concerns of the CNMI's nonresident workers and it fails to invite a nonresident worker or a representative advocate to give oral testimony it suggests that like many CNMI leaders, the committee members also regard these people as second-class citizens.  It suggests that they too regard the nonresident workers as people to be talked about, but not to speak; people who are valued as labor units, but not as equals deserving of basic social, political and economic rights.  

My written testimony argues for the U.S. Congress to immediately fulfill their moral obligation to grant permanent residency status to all of the 16,000 legal, long-term nonresident workers of the CNMI.

Some of the major points I have regarding H.R. 1466:

In May 2008 the Consolidated Natural Resources Act (CNRA) of 2008, U.S. P.L. 110-229, was signed into law, extending the Immigration and Nationality Act (INA) to the CNMI. The only mention of immigration status in the CNRA is a provision that mandated the Secretary of the Interior to report to the U.S. Congress by May 2010 on the status of the nonresident workers, including “recommendations to the Congress related to granting alien workers lawfully present in the Commonwealth on the date of the enactment of such Act United States citizenship or some other permanent legal status.”

The mandated the Department of the Interior (DOI) report was issued in April 2010. Among the recommendations was this statement:

Consistent with the goals of comprehensive immigration reform, we recommend that the Congress consider permitting alien workers who have lawfully resided in the CNMI for a minimum period of five years to apply for long-term status under the immigration and nationality laws of the United States.

The sole response from Congress to the mandated DOI report has been H.R. 1466, a bill “to resolve the status of certain persons legally residing in the Commonwealth of the Northern Mariana Islands (CNMI) under the immigration laws of the United States.” This bill was introduced in the U.S. House of Representatives in April 2011. This proposed legislation falls critically short of the only acceptable Congressional action, which would be to provide green cards and a pathway to citizenship to all of the long-term, legal nonresident workers in the CNMI as recommended in the CNRA-mandated DOI Report.

Rather than advancing the principles and ideals of our great nation, H.R. 1466 will take our country backwards to reflect some of the very same unjust provisions that were written in the post-Civil War Black Codes to regulate the freed slaves. These un-American, undemocratic laws restricted travel and employment and denied basic human and civil rights by prohibiting these second-class citizens from voting, serving on juries and holding government offices. These exact provisions of travel restrictions and disenfranchisement are contained in H.R. 1466 to regulate legal long-term nonresident workers. Surely, this kind of shameful status should not even be considered as a way to upgrade the status of dedicated legal long-term nonresident workers in 2011. It has been 150 years since the Black Codes scarred the reputation of the United States. Are members of the U.S. Congress seriously going to revive these un-American laws? Is the Administration of the first elected African-American President of the United States seriously going to support these xenophobic laws? Permanent residency with a direct pathway to citizenship is the only status that should be considered.

SERIOUS FLAWS IN H. R. 1466

H. R. 1466 excludes many more of the legal, long-term nonresident workers than it includes. There are an estimated 16,000 legal, long-term nonresident workers in the CNMI. H. R. 1466 addresses the status of only an estimated 4,000 or a mere one quarter of the total number of legal, long-term nonresident workers in the CNMI. Neither the CNRA nor the mandated DOI Report suggested that the U.S. Congress propose legislation to upgrade the status of only some of the legal long-term nonresident workers. The intent was clearly to upgrade the status of every legal, long-term nonresident worker. The bill includes those legal aliens who had a U.S. citizen spouse or child before May 8, 2008. Such nonresident workers are already eligible to be petitioned by their U.S. citizen spouses at any time, or petitioned by their U.S. citizen children when those children reach the age of 21, as the INA provides. However, thousands of other legal, long-term nonresident workers would not qualify for this status or any status under H.R. 1466. This bill throws 12,000 equally dedicated and deserving legal, long-term nonresident workers under the bus.

H.R. 1466 has been promoted as a bill intended to “keep families together”, but applies only to a limited number of select families. Since this bill provides security for families that have a family member who is a U.S. citizen, excluding thousands of other families, this is not a valid argument. It excludes nonresident families in which both parents are nonresident workers with no U.S. citizen children and families in which the married nonresident workers are childless. It excludes nonresident workers who are gay. It excludes nonresident workers who live and work in the CNMI and support their families who remain in their homelands. These distant families are hoping that the difficult and lengthy separation from fathers, mothers or spouses will be worth it if the family member is granted permanent residency.

Many of the thousands of excluded legal, nonresident workers have lived and worked for more years in the Commonwealth than nonresident workers who married a U.S. citizen or have given birth in the CNMI! A unmarried nonresident worker who dedicated 30 years of work in the CNMI would not qualify for status, whereas a nonresident woman who worked in the CNMI for any amount of time and gave birth during that time would qualify. This bill is discriminatory, unjust and un-democratic.

H.R. 1466 provides for a CNMI-only status that promotes the two-tiered society created by the abusive CNMI labor and immigration system that the CNRA attempted to end. Instead of granting permanent residency now to the legal, long-term nonresident workers, H.R. 1466 proposes the creation of a new “CNMI-only” category to be created under the U.S. immigration system.

This “CNMI-only” status sets a dangerous precedent for states and territories that may also choose to pre-empt or tweak federal immigration laws to suit their own purposes. Do we really want to see “Florida-only” status, “Arizona- only” status or other states and territories creating separate status categories to push their self-serving political agendas so that they can maintain a permanently disenfranchised underclass?

The proposed legislation fails to grant to the legal, long-term nonresident workers U.S. status with full political and social rights. This bill’s proposed new “CNMI-only” immigration status is no less than a separatist, apartheid-type status that would continue the unsustainable two-tiered society in which the persistent exploitation of the foreign workers would prosper under federal rule.

The proposed “CNMI-only” status would create an unnecessary new category that continues disenfranchisement. This type of status represents a status closest to the current unjust status that the nonresidents have endured for decades under the corrupt and abusive CNMI labor system. Foreigners invited to our shores to work and to build our economy should be regarded as future citizens rather than as replaceable commodities.

H.R. 1466 attempts to grant “special status” to the legal, long-term nonresidents workers of the CNMI.
About 12,000 legal, long-term nonresident workers were purposely left out of this bill because of the racist and the extreme indigenous rights sentiment of those who want to maintain political, social and economic control over the disenfranchised underclass of the CNMI’s two-tiered society. This bill will perpetuate all that was wrong with the CNMI system that P.L. 110-229 attempted to correct. Slapping the “federal” label on a broken CNMI system will fix nothing. It will only perpetuate the abuses and corruption. The 12,000 legal, long-term nonresident workers who were omitted from this bill for political purposes will have no chance to improve their status unless the U.S. Congress takes action to include them.

H.R. 1466 proposes restricting travel and employment of the upgraded nonresident workers. Not only does H.R. 1466 provide a status that would deny the legal, long-term nonresident workers political and social rights including the right to vote, but it also restricts the travel and employment of the qualifying nonresidents. They will remain chained to the CNMI. The bill states, in regard to aliens who would be granted CNMI-only permanent resident status:

(ii) Unless otherwise authorized, the alien shall not be permitted to travel to, or reside in, any part of the United States, as defined in section 101(a)(38) of such Act (8 U.S.C. 1101(a)(38)), other than the Commonwealth.

This is an unjust and backward attempt at ensuring a stable workforce in the CNMI that mirrors the Black Codes that brought shame and disgrace to our country 150 years ago. The vast majority of the foreign workers cannot return to their homelands because most left so many years ago that they have no property, job prospects or family to return to. The CNMI has become their home. There is a suggestion that if permanent residency is granted to the nonresident workers, they will leave the CNMI to go to other U.S. localities where they will earn more and be treated better. This mass departure of mass nonresident workers is unlikely since the majority of the foreign workers lack the financial ability to even buy an airplane ticket, never mind relocate a family to look for a new job and start a new life. More likely, given permanent residency status they will remain in the CNMI and with newly acquired political and social rights they will be able to contribute even more than they have over the last few decades.

H.R. 1466 attempts to put economic and political needs over human needs. At the July 14 oversight hearing of the House Committee on Natural Resources Subcommittee on Fisheries, Wildlife, Oceans and Insular Affairs, which included discussions on H.R. 1466, the majority of the discussion concerning nonresident workers focused on them as instruments that are essential to pump up the economy, and as labor units needed for their talents and skills. Where people are concerned, decisions cannot be made solely based on what is perceived to be good for a place. The discussions at the hearing centered on "what is good for the CNMI" rather than what is just, what is moral and what is best for those legal, long-term nonresident workers who sacrificed so much to serve the CNMI.

H.R. 1466 is co-sponsored by members of Congress who are immigration advocates. I am dismayed that more than a few of the cosponsors of H.R. 1466 are among the most outspoken supporters of immigration reform. Many of the cosponsors are members of the Congressional Hispanic Caucus or the Congressional Asian Pacific American Caucus, and they are recognized as champions for our country’s undocumented aliens. How can these members of Congress advocate for undocumented aliens to be provided with a pathway to citizenship, yet sign a bill that would deny the same status for the CNMI’s legal aliens?

Read the testimony:

More Problems with IPS and the ARRA Contract

July 27, 2011

Last year Governor Benigno Fitial confidently mocked the efforts of Congressman Gregorio Sablan who  contacted Vice-President Joe Biden with concerns over the questionable CNMI ARRA contract. The governor awarded the almost $400,000 contract  to former Secretary of Commerce Michael Ada's still-to-be-licensed company, Integrated Professional Solutions (IPS).

A November 1, 2010 Saipan Tribune article illustrated the cockiness of the governor who appeared to think that he is above the law:

The governor also lashed out at Delegate Gregorio Kilili C. Sablan for writing the governor a letter telling him that U.S. Vice President Joe Biden contacted his office to ask for a copy of Ada's IPS contract and other related information.

“Do you believe that?” Fitial asked, adding that it was Sablan who told Biden about the issue in the first place.

Fitial had responded to Sablan's letter, telling him that the governor's office forwarded the documents directly to Earl E. Devaney, chairman of the Recovery Accountability and Transparency Board and a former inspector general for the U.S. Department of the Interior.

The governor said he personally know both Devaney and Biden.

So smug and defensive. The governor received some other national publicity aside from the not so falttering article in the New York Times highlighted in the previous post. On July 18th the governor's tweet to Utah Governor Herbert made the Salt Lake Tribune:

Tweet of the day: From @governorherbert: "Governor Fitial, Northern Mariana Islands: 'I'm thinking of moving all my 65,000 people to #Utah.'"

Hmm, are the residents of the CNMI really "his" people. Do they want to move to Utah? Are there even 65,000 people left in the CNMI?

Also defensive is Ada's ISP partner, Jose Padilla who allegedly threatened a concerned citizen, Brian Kendall yesterday.  Kendall said that Padilla invited him to the IPS office to review some documents to prove the legality of IPS's contract. The Marianas Variety reports that once at the office Padilla verbally attacked and threatened Mr. Kendall.  Kendall reportedly contacted DPS to file a complaint. (Good luck with that!)

Jose Padilla, principal partner of IPS,
photo from ARRA Recovery website

Jose Padilla is a former executive at Red Rock LLC.  Red Rock was awarded an $50,000 ARRA contract by Ada.  Padilla also was awarded a contract for energy saving lights at the library, the CHC, and legislative buildings. The partnership with Padilla also adds to the mix of alleged violations including violations of the Government Ethics Act of 1992.

Another concern is that a report conducted by the Office of the Public Auditor and the DOI Inspector General found some deficiencies in the CNMI ARRA program that have not yet been corrected. One concern was that the CNMI ARRA website "should be kept current and complete for better transparency." The report stated:

For improved transparency and accountability, the CNMI should prepare data in a uniform format that is easy to update and can be used by the public to access all relevant grant information. Appropriate categories of information include grant amount, project name, contractor name, images, jobs created and expenditures as of the previous quarter that pertain to a specific grant. The timeliness, accuracy, and uniformity at the local level is crucial, as the federal website is updated quarterly using information obtained from the CNMI website. Thus any inaccuracies will likely be duplicated.

The website is not complete. There is no listing of grants funded by ARRA or other vital information that I could access. There should be a list of all agencies, departments or businesses that have been awarded ARRA funds, with funding amounts, names and other vital information. Check out the website at: http://recovery.gov.mp

From the Pacific News Center:

Fitial, Ada, Buckingham Go National in Contract-Gate

July 27, 2011

When there is a scandal in the CNMI, and it seems that there always is, the same pattern is followed.  The public expresses outrage, those who violate the public trust lie, there are no prosecutions or consequences for the offenders, the public expresses outrage, the offenders lie some more and then the public forgets about it.  In the CNMI the people have such bad memories that they even re-elect some of the worst offenders.

But what if the scandal goes national? What happens then? Let's see if it makes a difference. Today the New York Times published a story, Interior Watchdog: Islands' Deal With Former Commerce Secretary's Company Violated Rules. The New York Times somehow made the story seem even more damning than any of the Saipan papers did.

Maybe the national publicity will inspire the U.S. Attorney Office for Guam and the NMI to take another look at the contract violations that the DOI Inspector General found to violate numerous CNMI ethics and procurement laws. I mean seriously, how many violations can one Administration get away with?  There's the governor's gun-toting driver who was busted for dealing drugs from the governor's vehicle; the federal prisoner that the governor had released from jail to give him a massage; and the alleged Hatch Act violations during the last election to name a few. No charges and no consequences. But hey, the New York Times is among the top five most respected national U.S. newspapers. Maybe that will inspire federal law enforcement officials to say, "Enough is enough already."

The Times even labeled Governor Fitial (R) for Republican. The governor was so certain that the Republicans could help him push his agenda in Washington, DC that he switched from the Covenant  (or Corruption) Party to the Republican Party. Bet this publicity will really sway the national Republican Party leaders to back Fitial as the governor predicted. (Not!)

The paper also mentioned the fact that Fitial was an ally of the CNMI's very own "he who should not be named", none other than Jack Abramoff.  You have to appreciate the connection that the Times made between this unethical Ada ARRA contract and the Abramoff  contract that was renewed through the efforts of then Speaker Fitial in another unethical deal. The article connected more of those dots that paint a detailed picture of CNMI corruption for the American taxpayers.

Read the New York Times article here.

Major Fail: DPS and OAG

July 26, 2011

It doesn't take a rocket scientist to figure out that the CNMI Department of Public Safety and the Office of the Attorney General are bungling entities that are often ethically challenged and incapable of functioning to meet minimal acceptable standards. It may take a judge to wake up the people to the seriousness of the problem.

Associate Judge David Wiseman of the CNMI Superior Court slammed both the DPS and AGO for "failing to coordinate and cooperate in prosecuting cases." The Saipan Tribune quotes the judge:

“It is a complete waste of government resources and expense to have suspect criminals arrested and placed in a judicial prosecutorial process, only to have it all fall apart as a result of an absence of rigid standards of coordination and cooperation to be adhered to with respect to the investigations of DPS and the Criminal Division of the Attorney General's Office,” Wiseman said.

Wiseman was referring to the government's dismissal of the case involving Fu Zu Lin who was arrested in October 2010 for trafficking ice. Lin was peddling the drug at the Tinian Dynasty where he was employed. He was nabbed in a sting set up the CNMI Drug Task Force and the DPS Criminal Investigation Bureau, the very agency that blew the case.

According to the Tribune the detective handling the case left the island and the agencies could not obtain his files and report on the case.  Detective Sean White was handling the case and the prosecutor was AAG Benjamin Peterson. Isn't it customary that when employees leave their job they hand over the files and cases that they were working on and brief the person who is taking over the case/s?

Wiseman noted that this was not the only case that was dismissed for similar reasons and warned them to get their acts together.

In March 2011 the U.S. District Court of the NMI extended time for the Office of the Attorney General to respond in a police brutality case against Jesse Reyes Babauta.

Earlier in October 2010 DPS officers botched a drug bust in Saipan where police officer Jesse Dubrall brutally beat an innocent Chinese man who was incorrectly identified as the drug dealer. That officer left the DPS days later and was reportedly working at the Office of the Public Auditor. No charges were filed by CNMI or federal law enforcement officials. Rumor has it that the Chinese barber and his wife reportedly left the island.

How many assault, rape and theft cases against foreign employees in the CNMI were never prosecuted? I would guess thousands. What criminal employer that stole wages from an employee or employees was ever prosecuted?

Even church leaders are "disappointed" with DPS as was reported today in the Marianas Variety. Churches have been burglarized over the years and DPS has failed to nab the offenders or recover stolen items.

Furthermore, an astounding number of CNMI law enforcement officials have been charged with criminal violations, many of them violent.  The following is a list of some Department of Public Safety and Department of Corrections officials who have been arrested over the last 10 or so years:

• July 2011 - Saipan Police Officer 1 Gordon Odoshi Seman arrested for assault and battery and disturbing the peace for beating his wife
• July 2011 - former Police Sergeant Hillary John Tagabuel arrested for assault and battery, disturbing the peace and criminal mischief in beating his girl friend
• September 2010 Rota Customs Officer Albert Taitano and former Police Officer Adrian Mendiola were arrested for poaching on a breeding colony of fruit bats, an  endangered species.
• July 2010 - Saipan Patrol Officer Florencio Richards arrested for the trafficking of methamphetamine (ice)
• June 2010 - Saipan Corrections Officer Tyron Farley Reyes Fitial arrested for sexually assaulting a minor detainee
• May 2010 - Tinian Police Officer 1 Gilbert Macaranas arrested for trafficking methamphetamine (ice)
• April 2010 - Saipan Office of Public Auditor's chief investigator Juan M. Santos arrested for manufacture, sale or possession of firearms and dangerous devices; failure to show an identification card prerequisite to purchase, possession and use; and possession
• March 2010 - Police Officer 1 Kelani Vincent Pangelinan of the Patrol Section assault with a dangerous weapon, assault and battery, criminal mischief, disturbing the peace, illegal possession of firearms, kidnapping, and sexual assault in the first degree.
• March 2010 - Saipan Firefighter Dewain Borja arrested for assault with a dangerous weapon, assault and battery (reinstated)
• January 2010 - Tinian Police Officer Jason N. Ayuyu two counts of sex abuse of a minor in the first degree
• December 2009 - Unnamed Saipan police officer pointed a gun at a farmer
• November 2009 - Saipan Detective Christopher Leon Guerrero arrested for extortion
• November 2009 - Saipan Sgt. Joseph Agulto arrested for beating up his girlfriend and charged with assault and battery, and disturbing the peace
• October 2009 - Saipan Corrections Officer Jesse R. Babauta arrested for two counts of assault and battery, one count of assault, one count of interfering with a domestic violence report, and one count of criminal coercion (previously arrested and reinstated)
• October 2009 - former Rota Police Officer Victor Val B. Hocog, Jr. arrested for assault and battery and disturbing the peace for beating up his former girlfriend in Senator Paul Manglona's office.
• August 2009 - Saipan Florencio Q. Richards accomplice in a burglary and theft case (reinstated and rearrested)
• August 2009 -Saipan Corrections Sergeant Arnold Kaipat Seman arrested for beating up an inmate with charges of misconduct in public office, and assault and battery (reinstated and promoted)
• August 2009 - Saipan Corrections Officer II Manuel Quitano arrested for beating up an inmate with charges of misconduct in public office, assault and battery and obstruction of justice
• August 2009 - Saipan Firefighter Combiniano Taisakan arrested for theft and possession or removal of government property
• July 2009 - Saipan Customs officer Ramona M. Magofna, unlawful carrying of a firearm, carrying a firearm under the influence of alcohol, and disturbing the peace
• June 2009 - DPS Bureau of Motor Vehicles driver license examiner, Dereck Robert Duenas arrested for conspiracy in illegally issuing CNMI drivers licenses in exchange for fees.
• March 2009 - Saipan Police Officer John Kaipat Wabol, Jr.  beating his common-law wife and threatening to shoot her with his service firearm, assault and battery, and disturbing the peace. (reinstated)
• March 2009 Peter R.  Reyes, Jr., Fitial's bodyguard, a DPS employee, was arrested for dealing ice
• November 2008 - Saipan Police Officer Nick Leon Guerrero arrested for allegedly firing his personal gun and assaulting his brother (reinstated)
• July 2008-  Saipan Sgt. Hillary Tagabuel - conspiracy to commit theft by deception in insurance fraud
• November 2007 - Rota Police Sgt. Steve M. Mendiola arrested for pointing a gun at his common-law wife and threatening to kill and charged with attempted murder, assault with a dangerous weapon, assault and battery, and disturbing the peace.
• July 2007 - Saipan Police Officer 2 Misael L. Romolor was charged with one count of sexual abuse of a minor in the 4th degree.
• June 2007 - Saipan Corrections Officer Jesse R. Babauta arrested for assault with a dangerous weapon, assault and battery, and disturbing the peace (reinstated and rearrested)
• March 2007 - Tinian Police Officer Vicente N. Cruz two counts of assault and battery, assault with a dangerous weapon, criminal mischief, and disturbing the peace and violating an order for protection for domestic violence against his wife
• January 2007 - Saipan unnamed Police Sergeant strangled and beat his wife and was charged with assault and battery, assault, and disturbing the peace
• November 2006 - Probation Officer Robin Norita Sablan arrested for theft and foregery stole money from numerous probationers by collecting money from them and issuing fake receipts.
• June 2006 - Customs Officer John Reyes Lizama assault and battery, criminal trespass, and disturbing the peace.
• May 2006 - Saipan Corrections Officer John Lairopi William assualting a minor inmate and charged with assault and battery, and misconduct in public office
• March 2006 - Tinian Police Sergeant Pedro B. Cepeda selling methamphetamine or “ice” Previously arrested for assaulting another police officer and a woman in October 2005 and in February 2004 - for one count of sexual assault in the second degree, two counts of assault and battery, one count of disturbing the peace, one count of illegal carrying of a firearm, two counts of criminal mischief, one count of misuse of government vehicle, one count of resisting arrest, one count of obstructing justice, one count of reckless driving, and one count of driving while under the influence of alcohol.
• February 2006 - Saipan Police Shooting Range Master Ambrosio T. Ogumoro arrested on charges of assault and battery, illegal possession of a firearm, and illegal possession of ammunitions. He was not chraged for threatening to blowup the police station and for threatening to kill Governor Fitial (record expunged in 2008 and he was reinstated)
• February 2006 - Saipan Police Captain Aniceto T. Ogumoro arrested on charges of two counts of unlawful possession of a firearm, one count of possession of a weapon without proper registration, and one count of unlawful possession of ammunition. The case was dismissed because of improper search warrants, evidence was suppressed. (reinstated)
• October 2005 - Saipan Police Officer Kui Rogopes on charges of misconduct in public office and accessory-after-the-fact in connection with the criminal case against Daniel Kintaro Santos
• January 2005 - Saipan Police Detective Eric John Tudela Mafnas stealing seized drugs and selling them, charged with legal use of public supplies, services, time, and personnel; theft; and theft by deception
• January 2005 - Saipan Police Detective Charley K. Patris stealing seized drugs and selling them, charged with legal use of public supplies, services, time, and personnel; theft; and theft by deception
• January 2005 - Saipan Police Officer Edward Maritita illegal use of public supplies, services, time, and personnel; theft; and theft by deception
• December 2004 -  Saipan Police Detective Juan R. Limes arrested for charges of disturbing the peace and assault and battery in two separate incidents
• February 2004 - Tinian Police Officer Peter Borja Cepeda arrested for sexual assault, assault and battery, resisting arrest, reckless driving, DUI, criminal mischief and obstructing justice...
• February 2003 -  DOC officers Stanley Kintaro Patris, Anthony Leon Guerrero Cruz, Nick Masga Reyes and Felix Jonathan Maratita Camacho were arrested for assaulting inmates.
• August 2002 - former police Officer Riang Yosino charged with disturbing the peace of two female cousins at a theater and assault and battery of a police officer. He was previously charged with hit and run with a police car involving 4 damaged vehicles and two injuries while he was DUI.
• March 2001 - Former Police Investigation Chief Delbert R, Sablan was arrested for one count of theft concerning federal money.
• February 2001- Former Police Officer Emmanuel Limes Norita was arrested for disturbing the peace, assault and battery and assault

There's more. In February 2010 Li Gui Xiang alleges she was assaulted by police officers on Saipan. In May 2007, employees of the Top Fashion garment factory in Tanapag alleged police brutality when during a sit down protest police officers pepper sprayed and kicked some of the protesters. (The brutality was captured and posted on You tube.) In October 2005 Dan Gao Bright, a tour agency operator was pulled over while driving, allegedly assaulted by Police Officer John C. Sablan and falsely imprisoned for 8 hours. In August 2005 a Chinese store owner alleged police brutality.  In August 2003 then DPS commissioner Edward Camacho and an unnamed policeman were sued by Zhang Qisen who was allegedly assaulted and falsely detained. In August 2002 another Chinese victim, Kwon Woo Kim, sued DPS officer Ralph Mendiola Torres for false arrest, assault and battery and other civil rights violations.

The DPS remains ineffective. Last month the commissioner announced that DPS personnel will be subjected to random drug testing because there are officials who abuse drugs. This week DPS sexual offender registry coordinator Officer Jason Tarkong stated that the CNMI Legislature's failure to pass a new sexual offender law will mean the loss of $370,000 in federal funds.

The Office of the Attorney General is no better. Over the two years attorneys have left the OAG in droves, 14 have left since Buckingham took office.  Maybe it is time for AG Buckingham to step down. Perhaps he is so preoccupied defending himself, the governor and the Administration's political allies against ethics charges that he doesn't have time to do his job.

More Abuse of Chinese Nationals in Saipan

July 26, 2011

In the last few months several Chinese nonresident workers have been attacked. In April 2011 a Chinese delivery man, Hua Ming Zhang of Feng Ze Corp. was beaten, stabbed and robbed in Chalan Kanoa at a market where he was delivering tofu. He required 31 stitches to close the deep wounds on his arm. As far as I know the suspects were not apprehended.

On July 7, 2011 another Chinese man was attacked while selling vegetables on the side of the road in San Antonio. The roadside vendor was choked with a string and then his truck was stolen. The truck was found on fire in Koblerville.

There is something very wrong with the details of this incident. The Marianas Variety reported that the police arrested the attacker, but have failed to release his identity except to say he is a 20 year old "local" man. The dangerous criminal was released the same weekend he was arrested.

From the Variety:

The defendant was initially booked on charges of theft of vehicle, robbery, assault with a dangerous weapon, and alcohol sale to minors and persons without identification.

Variety was told that authorities have 48 hours to process a defendant and file a complaint in court.

No charges have been filed in court and neither the Department of Public Safety nor the Attorney General’s Office have issued a statement regarding the incident.

The victim, a Chinese, said two local men approached him while selling vegetables on a roadside in San Antonio.

Odd that the story is broke over two weeks after the incident happened. The Variety reported in a story yesterday that the vendor and his Chinese employer are requesting information from Police Commission Ramon Mafnas:

“We will also seek further legal action against the criminals. From my understanding, [the Department of] Corrections is still holding one of the men. It has been over two weeks now but DPS has so far not released information to the victim … and his employer,” their letter to Mafnas stated.

The victim and the employer said the case involved charges of assault with a dangerous weapon, personal injuries/attempted murder, vehicle theft, robbery, destruction and loss of personal properties, loss of income and harassment.

DPS had yet to respond to the inquiries of this reporter.

The employer said the matter has not been referred to the Attorney General’s Office.

Yesterday, this reporter went to an open boonie area on Adobo Drive in Koblerville, where the victim’s burned pick-up was left by the perpetrators.

The victim and the employer noted that the vehicle was not towed and preserved as evidence.

Individuals were earlier seen carrying scrap metals taken from the vehicle.

The DPS better announce the name of the thugs and do it soon or there will be a demand for an investigation of this agency.  The OAG better prosecute to the fullest extent of the law. Both agencies get federal funding and taxpayers will not stand for this garbage.

Last year a DPS officer, Jesse Dubrall brutally beat an innocent Chinese nonresident worker in a drug bust gone bad. Again what was his punishment? None!

Stolen Stimulus Checks
Meanwhile DPS received a complaint two weeks ago that stimulus checks were stolen and cashed. What was their response? Why, none.

In July 2010 the Tax and Revenue Office started mailing out tax refunds and stimulus checks.  Many nonresident workers never received their checks.  In fact, I received numerous emails from nonresident workers who reported they were given the run around at Tax and Revenue and are still waiting for their checks. How many nonresident workers and residents never received their tax refunds and stimulus checks? I would guess thousands.

Bin Pan and two other employees of Saipan Triple Star Recycling filed a police complaint two weeks ago concerning stimulus checks that they never received, but Tax and Revenue reported as cashed. They told the Saipan Tribune that they still have not received a police report on the complaint.

The F.B.I. is now investigating the report of stolen stimulus checks. Ten Chinese employees of Saipan Triple Star Recycling reported that their stimulus checks worth $400 each were released by the Tax and Revenue Office and cashed. 

Ge Zhoa the office manager of Triple Star Recycling told the Tribune that he was aware that this was a problem:

Zhao said that an FBI special agent entertained their complaint and encouraged all other Chinese nationals to step forward if they believe their stimulus checks were also fraudulently encashed.

“We have to find out what happened to the checks because it's for our employees' benefits. Our employees did not sign the checks, so how were the checks cleared?” he asked.

Zhao said that they had obtained information before that many Chinese nationals did not get their stimulus or rebate checks but because of the language barrier, they just went back to China without getting their checks.

He said they decided to expose this scam because they don't want this fraudulent scheme to happen again.

Zhao said they learned of the scheme when, after repeated follow-ups at Tax and Revenue, a staff gave them a list of checks that were supposedly released to their 10 employees.

The list indicates that the checks were released on July 24 and Aug. 13, 2010, and subsequently cleared on Sept. 29, 2010, Oct. 4, 10, 13, 18, 2010, and Nov. 1, 4, 15, 16, 2010.

Zhao said it is very suspicious that the checks cleared after three months of their release.

“If you receive your check, you don't wait for three months to cash it to the bank,” Zhao said.

Maybe this is an inside job?  

Fitial-Willens on H.R. 1466

July 26, 2011

A memo written by Howard Willens (Is he still on the Fitial payroll?) on behalf of Governor Fitial concerning H.R. 1466 is a big yawn.  Willens argues that there are likely over 13,000 legal aliens who would receive the upgraded CNMI-only status under H.R. 1466.  Congressman Sablan claimed that only 4,000 would qualify. In his oral testimony at the July 14 hearing Governor Fitial estimated 11,000 would qualify.

H.R. 1466 does not address granting status for all of the estimated 16,000 legal, long-term nonresident workers, but only a select number of aliens with a U.S. citizen spouse or child. It is the number in this group that is being debated.

The memo argues about continuous residency, splits statistical hairs and has the same xenophobia nuances that permeated Fitial's testimony and the written testimony of his appointee, Susan Blas De Leon Guerrero.  The memo was written to support Fitial's written testimony that contained the argument that granting shitty CNMI-only status only some of the qualified long-term  aliens will negatively impact the CNMI is baseless since these same aliens have been in the CNMI for decades!  They already impacted it. They impacted it positively building the economy and as contributing members of the community.

The memo concentrates on births of U.S. citizen children with aliens parents, as if somehow they are less than full U.S. citizens because their parents are aliens. It suggests that their parents' status should remain second-class even though these aliens have become de facto citizens having been renewed by the CNMI government for years and decades.

Willens suggests that as many as 7,557 U.S. citizen children in the CNMI have alien parents and estimates that as many as 13,602 could take advantage of gaining second-class CNMI-status through  H.R. 1466.  As if giving only 13,602 legal aliens an inferior status could hurt anything? These people are all immediate relatives of a U.S. citizen.  The aliens who are married to a U.S. citizen spouse are already eligible for green cards now; those aliens who are parents of U.S. citizen children can be petitioned for permanent residency when their U.S. citizen children become 21 years of age. What's the problem?

The nonresident workers being debated entered the Commonwealth legally. They were brought in by CNMI leaders with the blessing of the indigenous people. What Fitial and his cronies really object to is having the disenfranchised underclass have any chance of obtaining social, political or economic rights. But not to worry, H.R. 1466 does not upgrade the affected alien workers to permanent residency status as it should.  It proposes the creation of a CNMI-only status that mirrors the status granted to the freed slaves under the post-Civil War Black Codes.

The truth is that it does not matter if there are 4,000, 11, 000 or 13,000 aliens with a U.S. citizen spouse or child. So many have left because they were robbed of wages and could not survive, lost their jobs because of the depressed economy or moved to greener pastures that it would take another census to determine how many are actually left. Who really cares?  The fact that Congressman Sablan left out other equally deserving long-term nonresident aliens is unacceptable and makes the bill defective anyway.  Arguing over what number of the legal, nonresident workers could be granted a CNMI-only status that restricts travel and chains them to the CNMI in their current disenfranchised state seems to be a waste of time.

The only morally correct move would be to grant permanent residency status to every legal, long-term (5 or more years) nonresident worker.  If they have jobs, they will stay and continue to contribute to the betterment of the CNMI. If they are no longer employed then they can take their chances in other U.S. localities where, being the hardworking and intelligent people that they are, they will find jobs and prospects for a brighter future. Give these people freedom and return their dignity!

Appearance of Federal Crime in CNMI ARRA Contract Scheme

July 25, 2011

In researching ARRA regulations and guidelines, it appears that federal law was violated in the ARRA contract scheme in which CNMI Governor Fitial awarded Michael Ada's Integrated Professional Services, LLC a controversial $392,406 sole source contract to oversee the CNMI's ARRA funds.

I am basing that conclusion on information from a few sources. It appears that "recipients of American Recovery and Reinvestment Act (ARRA) funds must comply with applicable state and federal contracting laws and regulations." The investigation conducted by the the Department of the Interior Office of the Inspector General and the CNMI Office of the Public Auditor found clear evidence that CNMI ethics and procurement laws were violated:

Our investigation collected evidence suggesting that the contract to IPS violated multiple CNMI ethics rules, including 1 Commonwealth Code (CMC) § 8543: Post-Employment Restrictions; 1 CMC § 8531: Use of Office, Staff or Employees of Public Office; and 1 CMC § 8532: Restraint on Use of Public Position to Obtain Private Benefit; and 1 CMC § 8544: Negotiating for Nongovernment Employment. In addition, we found that the contract may have violated CNMI Procurement and Supply Regulations, Part 700, “Ethics in Public Contracting.” Under the terms and conditions, the contract is null and void if the procurement processes or execution fails to comply with CNMI Procurement and Supply Regulations. 

The U.S. Attorney’s Office for the District of Guam and the Northern Mariana Islands declined prosecution of this investigation. We conducted this investigation jointly with the CNMI Office of Public Auditor (OPA). OPA will provide its opinion separately to the CNMI Government.

The Recovery Oversight Office states that ARRA fraud criminal violations include: forgery, mail fraud, conspiracy, false claim, embezzlement, false statement, theft and bribery, conflict of interest, obstruction of federal audit, fraud by wire, radio, or television, major fraud against the United States.

I would say (from a non-attorney perspective) that conflict of interest was clearly revealed by the DOI Inspector General's report. Perhaps also conspiracy in the way the contract was awarded to Michael Ada before he even had a company formed.  Multiple meetings between Fitial and Ada were conducted to come up with the scheme and create the contract to ease Ada from the position of Secretary of Commerce, the agency that oversaw ARRA funds, to ISP, the company that Ada formed so that he could personally benefit by securing the ARRA contract.  The transaction that was approved by Attorney General Buckingham who acknowledge knowing that CNMI laws were violated.

As revealed in an October 26, 2010 post, Ada's IPS business partner is Jose Padilla who is a former executive at Red Rock LLC.  Red Rock was awarded an $50,000 ARRA contract by Ada.  Padilla also was awarded a contract for energy saving lights at the library, the CHC, and legislative buildings. The partnership with Padilla adds to the mix of alleged violations including violations of the Government Ethics Act of 1992.

The Recovery Oversight Office guidelines further state:

ARRA expands protection to non-federal employees who reasonably believe there is reasonable evidence of:

• Gross mismanagement of contract or grant
• Gross waste of ARRA funds
• Substantial danger to health and safety
• Abuse of authority
• Violation of law, rule or regulation regarding contract or grant

Another question is whether the contract is now considered valid. The report states:

Under the terms and conditions, the contract is null and void if the procurement processes or execution fails to comply with CNMI Procurement and Supply Regulations.

Will the ARRA oversight office declare this grant null and void? Will the ARRA funds have to be returned?  Will the three conspirators be held accountable?

The U.S. Department of Justice should issue a statement informing the public and federal tax payers why this investigation will not be prosecuted by the U.S. Attorney's Office for the District of Guam and the Northern Mariana Islands.

See these previous posts for background information:
Crossing the Line, July 24, 2011
More CNMI Corruption From the Ethically Challenged Fitial Administration, July 21, 2011
CNMI Abuses, October 26, 2010
Office of the Public Auditor Dropping the Ball? October 22, 2010
Contract Concerns Continue, October 21, 2010
OIA: "We don't want people messing with our money." October 19, 2010
Just as Suspected, October 18, 2010
Ada Steps Down as Commerce Secretary and Lands Contract From Governor, October 16, 2010

Read the DOI Report on the Investigation:

Crossing the Line

July 24, 2011

CNMI and federal officials should not run for public office or accept a position of authority if they don't expect criticism and disagreement from the public,  taxpayers and the press.  This includes Governor Fitial, Attorney General Buckingham, every political appointee, every department head, every government employee; every member of the CNMI Legislature and the U.S. Congress; and all of their staffers.  Furthermore, if these elected officials and appointees are unwilling to act in moral and ethical manner; routinely engage in cover-ups and lie to the public; put their re-election ambitions before doing what is in the best interest of the people; and dole out  favors that benefit political allies then they should expect criticism and public outrage. Dishonorable officials too often attack the messenger or bully and threaten those who disagree with them instead of engaging in civilized discussion to come to an agreement or simply and respectfully agreeing to disagree.

When government officials and employees break laws and violate the public trust another line is crossed. Citizens expect and deserve to have full disclosure and see government officials that cross legal lines held accountable. They should leave office, face sanctions (such as being disbarred), be prosecuted or face a combination of these or other consequences.

Case in point is Attorney General Buckingham as quoted by the Saipan Tribune in one of his typical whines:

Attorney General Edward T. Buckingham lashed out yesterday against Public Auditor Mike Pai and CNMI Delegate Gregorio Kilili Sablan, saying both “will never miss an opportunity, even without merit, to attack me and the governor.”

Buckingham was particularly incensed by Sablan's statement relating to the Office of the Inspector General report that the people of the CNMI “can have little confidence that the Office of the Attorney General will press charges or seek recovery of funds.”

Buckingham said he was limited by law as to his comment because he received a report labeled “privileged and confidential” and limited to “official use.”

Is he talking about the Investigatory Report issued by the Office of the Department of Interior that exposes corruption involving him, Governor Fitial and Michael Ada's ARRA contract?  If so the "privileged and confidential" report is online. That is where I got it from to post on this site. Or is he talking about the OPA report that was released only to the governor and AG that the public should have access to, but is being withheld from the public?

The Saipan Tribune reported from a press release (press release from the AGO?):

Buckingham was particularly incensed by Sablan's statement relating to the Office of the Inspector General report that the people of the CNMI “can have little confidence that the Office of the Attorney General will press charges or seek recovery of funds.”

Incensed by the truth? Does that mean that the AG is going to take appropriate action to correct the violations?  If AG Buckingham doesn't think that he, the governor and Ada don't deserve attacks, then he is delusional. These three corrupt musketeers should take responsibility for violating CNMI laws. All unspent CNMI ARRA funds should be returned to the federal government. All misspent ARRA funds should be recovered. No more grants should be issued to this corrupt government.

Buckingham is the Attorney General of the CNMI, yet he feels he is above the law (see Election Gate and Vendetta Gate) and he allows the governor and the governor's appointees or pals to violate laws. What kind of attorney general is this? Shouldn't he be disbarred, if not forced to resign?  This attorney general's excuses for why he allowed a contract that violated a series of the CNMI's ethic and procurement laws to slide on by are pathetically flawed. An effective and law-abiding attorney general would have stopped the contract because it violates law rather than making up lame excuses to justify violating laws.

By the AG's reasoning anyone can violate CNMI law if it serves a better purpose. Hungry? No problem. According to the CNMI AG's logic one can rob a store in the CNMI for food because a law can be violated in order to "balance interests." After hunger, hunger is a serious interest.  I suppose one could rationalize breaking any law using the AG's logic. Or do excuses for violating CNMI laws only apply to elected or appointed officials. Frightening much?

How disingenuous that Buckingham tries to deflect his own violations by attacking Public Auditor Michael Pai. The AG also suggests the problems were created by Ada, but fails to acknowledge his participation and that of Governor Fitial. He states:

“I do believe, personally, that Mike Ada put the governor and the Commonwealth in a very difficult situation by leaving government service and then contracting privately for his services. That was unfortunate but it's a choice Mr. Ada made.”

Buckingham should re-read the DOI Inspector General's Report. The governor and the AG both have significant roles in this corrupt deal:

In August 2010, Ada informed Fitial of his intent to leave the government. Ada and Fitial discussed privatizing Ada’s duties of managing CNMI’s ARRA projects and funds. During Ada’s final month in office, at Fitial’s direction, Ada prepared the service contract for management of ARRA funds for award. Ada and Fitial dispute who first brought up the idea of a private contract to manage CNMI’s ARRA projects. Both agree, however, that they developed the Integrated Professional Services (IPS) contract while Ada was in office. 

Ada resigned from his position as Secretary of Commerce on October 8, 2010. On October 12, 2010, a $392,406 service contract (Contract 525276-OC) was approved for the not-yet-formed IPS to manage CNMI’s ARRA projects and grants. The contract was officially awarded on October 13, 2010. On October 14, 2010, Ada and his business partner obtained a business license for IPS. Based on Fitial’s justification, the contract was awarded as a sole-source award. Based on another justification from Fitial, CNMI advanced IPS $78,418. The contract was funded with administrative funds from ARRA awards. 

To fund the enhanced reporting and administrative requirements placed on recipients of ARRA funds, the Act includes a provision that allows recipients to add an additional 0.5 percent to their negotiated indirect cost rates for ARRA awards. Ada explained that his former governmental ARRA oversight office was funded solely with these administrative funds. 

Attorney General Edward Buckingham and Director of Procurement and Supply Herman Sablan reviewed the determination to award the contract as a sole-source award to IPS. Buckingham acknowledged that ethics concerns existed and that Ada had a conflict of interest. He thought, however, that the need for the contract outweighed ethics concerns. Sablan said he felt that the sole source award was justified because the justification indicated that the Attorney General reviewed the document. He acknowledged that he simply relied on the Attorney General’s opinion rather than his own review of the document.

Let's assume that no federal laws were broken, and that is why the DOJ will not be prosecuting.  Then at the very least perhaps the ARRA oversight agency could collect the $78,418 that Ada was advanced and any other funds that were federal tax dollars that were misspent in this scheme.

CNMI's Request Struck Down in FOIA Request Lawsuit

July 22, 2011

Last week U.S. District Judge Reggie B.Walton of the District Court of the District of Columbia filed an order denying the CNMI's request to “to compel the production of all records with respect to a census of aliens conducted by the defendant, the United States Department of the Interior, in the Commonwealth of the Northern Mariana Islands in December of 2009.”

This was the latest order in the Freedom of Information Act lawsuit that was filed in September 2010 against the U.S. Department of the Interior.  The lawsuit is seen by many as a witch hunt against Ombudsman Pamela Brown since the documents that the officials knew that the documents sought in the case do not exist. The Fitial Administration has been at odds with the Ombudsman's Office since the governor took office.

The order shot down attorney Deanne Siemer and attorney Teresa Kim's attempt to force the Federal Ombudsman's Office to produce documents that both attorneys admitted did not exist. The forms used to create the spreadsheets for the census of nonresidents used for the DOI status report were destroyed after the information from them was inputted.  The DOI report was mandated by P.L. 110-229.

The judge noted that typically there is no discovery in FOIA requests and that a FOIA request can only pertain to documents that are in the possession of an agency at the time of the request. The attorneys were well aware that the documents that they requested do not exist.

As part of the vindictive lawsuit, the CNMI attempted to have the DOI sanctioned for the destruction of the records, which were merely intake document used to create the spreadsheets and reports. The judge stated that in cases where sanctions were considered, the destruction would have occurred after the FOIA request was filed. The order noted that in this case the destruction of documents took place  five months before the FOIA request was filed.




Another FOIA lawsuit that Siemer and Kim filed against the Social Security Administration in October 2010 was dismissed this month. The wicked witch's cry, "I'm melting!" may be adopted by Siemer and Kim as their lawsuits fall apart. Their stupid witch hunts are unappreciated by the federal taxpayers.


Image of I'm Melting Wiz Of Oz

BACKGROUND


Additional Posts On Witch Hunt:
New Filings in Witch Hunt,  June 4, 2011
CNMI Witch Hunts, May 19, 2011
US Response in Witch Hunt Lawsuit, May 7, 2011
CNMI Witch Hunt, May 4, 2011
Much Ado, April 20, 2011

Read Attorney Jane Mack's post, The Power Struggle Over Alien Labor, Day in Court, March 16, 2010

Some Unheard No More! Posts providing background on the CNMI Government's attacks on and conflicts with the DOI and Ombudsman Office:

2010 Labor Report: More Lies, February 9, 2011
Listen Up!, January 13, 2011
Transition to Federalization: The long and winding road, January 11, 2011
Unreal, November 23, 2011
Flawed "Exit Survey", September 1, 2010
Status For Foreign Contract Workers, July 9, 2010
Seriously? July 1, 2010
Provisions in PL 17-1 are Unconstitutional, June 27, 2010
More Jive, June 10, 2010
Post Rerun, June 7, 2010
Short Takes from the CNMI, June 5, 2010
USCIS Parole, June 3, 2010
Educational Campaign?, May 27, 2010
Indigenous People to Hold Rally, May 21, 2010
THE LIE, May 15, 2010
Public Hearing on Resolution 17-4, May 10, 2010
CNMI to Submit Own Report to Congress, May 5, 2010
Predictable Reaction to DOI Report, April 30, 2010
Report from Interior: Status Recommended for Long-term Foreign Workers, April 29, 2010
More Siemer Garbage, April 27, 2010
Status for Foreign Workers, April 26, 2010
Politics As Usual, CNMI Style, April 22, 2010
Letter to Deanne Siemer from Malou, March 27, 2010
CNMI vs US, March 25, 2010
The Ominous Omnibus Bill Now PL 17-1, March 22, 2010
More Whine, Rant, Spin, March 21, 2010
Forum at Kilili Beach, March 20, 2010
More on CNMI vs Feds Fight, March 18, 2010
More Undermining of Federal Authority, March 15, 2010
How Do you Get Something So Wrong? March 14, 2010
Statement From DOI Assistant Secretary Babauta, March 12, 2010
Federal Position Clarified by Federal Labor Ombudsman Pam Brown, March 10, 2010
More Labor Jive, March 9, 2010
Kaipat, and the Battle Continues, March 8, 2010
Assistant Secretary Babauta to Conduct Worker Forums, March 7, 2010
Ombudsman Meeting Draws Huge Crowd, March 4, 2010
Do Not Go to DOL, January 19, 2010
Umbrella Permit Confusion at DOL, January 17, 2010
CNMI Department of Labor Hell, January 15, 2010
Status for Foreign Workers, January 12, 2010
Notice from Federal Ombudsman, December 30, 2009
CNMI News Bites, December 29, 2009
Alien Registration Ends at Midnight, December 28, 2009
Alien Registration Almost Complete, December 27, 2009
Holiday Scrooges, December 23, 2009
Guest Worker News, December 18, 2009
Alien Registration Form Clarified, December 13, 2009
Alien Registration Form, December 12, 2009
Alien Registration Begins, December 10, 2009
More Schemes, December 1, 2009

Even Older...(look in search on this site for more anti-federal posts and Fitial Administration spin )
Federal Ombudsman Responds to Kaipat, January 20, 2008

CNMI Government's Withholding of Data and Statistics (The Ombudsman's Office would not have had to conduct a registration if the CNMI shared data.)
More on CNMI Statistics and Data August 4, 2009
DOL's 10th Interim Report: Hidden data and statistics, July 23, 2009
Questions About the CNMI Department of Labor June 24, 2009
Hidden Data, June 4, 2009

More CNMI Corruption From the Ethically Challenged Fitial Administration

July 21, 2011

Corruption continues to ooze from the CNMI and as usual, it involves federal tax dollars. The U.S. Department of the Interior's Inspector General released a report on the investigation of a questionable $392,406 sole source contract that the Fitial Administration awarded to former Commerce Secretary Michael Ada to oversee ARRA funds.  The report stated:

Our investigation collected evidence suggesting that the contract to IPS violated multiple CNMI ethics rules, including 1 Commonwealth Code (CMC) § 8543: Post-Employment Restrictions; 1 CMC § 8531: Use of Office, Staff or Employees of Public Office; and 1 CMC § 8532: Restraint on Use of Public Position to Obtain Private Benefit; and 1 CMC § 8544: Negotiating for Nongovernment Employment. In addition, we found that the contract may have violated CNMI Procurement and Supply Regulations, Part 700, “Ethics in Public Contracting.” Under the terms and conditions, the contract is null and void if the procurement processes or execution fails to comply with CNMI Procurement and Supply Regulations. 

The U.S. Attorney’s Office for the District of Guam and the Northern Mariana Islands declined prosecution of this investigation. We conducted this investigation jointly with the CNMI Office of Public Auditor (OPA). OPA will provide its opinion separately to the CNMI Government.

The U.S. Department of Justice should issue a statement informing the public and federal tax payers why this investigation will not be prosecuted.

In October 2010 the Office of the Public Auditor announced that it was investigating the questionable sole-source contract awarded to former Secretary of Commerce Michael Ada to oversee the ARRA funds.   Ada oversaw ARRA funds as the Secretary of Commerce until he resigned on October 8, 2010. Just four days later he was awarded the $392,406 sole source contract. Not only was he already performing the same services under the Department of Commerce, but he did not even have a license for his business, Integrated Professional Services, LLC at the time the contract was awarded to him.

According to the DOI investigation, Fitial and Ada planned the transition of ARRA funds from the Department of Commerce to a business formed by Ada.  From the report:

In August 2010, Ada informed Fitial of his intent to leave the government. Ada and Fitial discussed privatizing Ada’s duties of managing CNMI’s ARRA projects and funds. During Ada’s final month in office, at Fitial’s direction, Ada prepared the service contract for management of ARRA funds for award. Ada and Fitial dispute who first brought up the idea of a private contract to manage CNMI’s ARRA projects. Both agree, however, that they developed the Integrated Professional Services (IPS) contract while Ada was in office. 

Ada resigned from his position as Secretary of Commerce on October 8, 2010. On October 12, 2010, a $392,406 service contract (Contract 525276-OC) was approved for the not-yet-formed IPS to manage CNMI’s ARRA projects and grants. The contract was officially awarded on October 13, 2010. On October 14, 2010, Ada and his business partner obtained a business license for IPS. Based on Fitial’s justification, the contract was awarded as a sole-source award. Based on another justification from Fitial, CNMI advanced IPS $78,418. The contract was funded with administrative funds from ARRA awards. 

To fund the enhanced reporting and administrative requirements placed on recipients of ARRA funds, the Act includes a provision that allows recipients to add an additional 0.5 percent to their negotiated indirect cost rates for ARRA awards. Ada explained that his former governmental ARRA oversight office was funded solely with these administrative funds. 

Attorney General Edward Buckingham and Director of Procurement and Supply Herman Sablan reviewed the determination to award the contract as a sole-source award to IPS. Buckingham acknowledged that ethics concerns existed and that Ada had a conflict of interest. He thought, however, that the need for the contract outweighed ethics concerns. Sablan said he felt that the sole source award was justified because the justification indicated that the Attorney General reviewed the document. He acknowledged that he simply relied on the Attorney General’s opinion rather than his own review of the document.

Ada's IPS business partner is Jose Padilla, a former executive at Red Rock LLC.  Red Rock was awarded an $50,000 ARRA contract by Ada.  Padilla also was awarded a contract for energy saving lights at the library, the CHC, and legislative buildings. The partnership with Padilla adds to the mix of alleged violations including violations of the Government Ethics Act of 1992.

In October 2010, the governor's press secretary, Angel Demapan claimed that the Government Ethics Law of 1992 does not apply to this contract. However, in October 2010 there were many newspaper articles and blog posts pointing out that the ARRA contract appeared to have been in violation of  The Government Ethics Act of 1992.

Section 8432. Restraints on Use of Public Position to Obtain Private Benefit states:

(a) A public official or public employee shall not use or attempt to use the public position to obtain private financial gain, contract, employment, license, or other personal or private advantage, direct or indirect, for the public official or public employee, for a relative, or for an entity in which the public official or employee has a present or potential economic interest.

(b) A public official or public employee or a former public official or former public employee, shall not disclose or use for the public official or employee, or a former public. official or former public employee's own economic benefit, or that of another person, confidential information acquired by the public position or employment that is not generally available to the public.

The DOI investigation concluded that this rule was violated:

Our investigation discloses that as the employee responsible for CNMI’s ARRA management efforts, Ada gained a distinct advantage in obtaining the ARRA management contract. Fitial said that Ada obtained the ARRA management contract because he was indispensable to CNMI’s ARRA management efforts. Buckingham acknowledged Ada’s conflict of interest in negotiating the contract but said that the governor awarded the contract to Ada because failure to approve the contract would put millions of dollars in ARRA funds at risk. Buckingham said that in negotiating for a private ARRA management contract, Ada had CNMI at a disadvantage, and Ada used his advantage to obtain the contract. 

Ada used information not generally available to the public for his own economic benefit. Only Fitial and Ada knew of the possibility of privatizing CNMI ARRA management until after they agreed to the framework of the deal. Ada did discuss the possibility of the contract with Lieutenant Governor Eloy Enos. Ada authored a letter requesting an opinion to the Public Auditor prior to the award of the contract. Fitial signed the letter. This information, however, was not available to the public. The ARRA management contract was never advertised, and the public did not know of the privatization of ARRA management until after IPS was awarded the contract. 

Further, the sole-source justification memorandum from Fitial to the Director of Procurement and Supply, Herman Sablan, on October 6, 2010, acknowledges Ada’s advantage. It reads, “Mr. Ada has extensive historical and current knowledge, as well as non-public information of all ARRA funds. His clear advantage with the intricacies of the ARRA funds creates a distinct advantage should the CNMI Government bid out the services according to procurement regulations.”

Section 8543(b), Postemployment Restrictions states that:

No former public official or public employee shall, for a period of one year after the termination of the official’s or employee’s term of public office or public employment, assist or represent any person in any business transaction involving the Commonwealth if the official or employee participated personally and substantially in the subject matter of the transaction during his term of public legal authority. With respect to a contract, this prohibition shall be permanent as to that contract.

The DOI investigation found that this rule was violated:

Ada participated personally and substantially in CNMI’s ARRA management while he was a government official. Fitial appointed Ada to manage CNMI’s ARRA projects and said that Ada was vital to CNMI’s ARRA management because he had been “very involved” with the program since its inception. Ada applied for ARRA grant funding and secured $97 million for CNMI. 

Review of contract documents indicates that Ada represented IPS in its contract with the CNMI government. Review of business registration documents shows that he is a full partner in IPS, and the contract bears his signature. When interviewed, Ada acknowledged that he arranged the contract with the government on behalf of IPS and substantially participated in preparing the contract documents on behalf of the CNMI government. 

IPS was awarded the contract just 5 days after Ada resigned from the government, which violates the regulatory 1-year period. Ada confirmed that he officially resigned his position as Secretary of Commerce on October 9, 2010, and signed the contract on October 12, 2010. Review of the contract file showed that the Director of Procurement and Supply processed the contract and issued the notice to proceed on October 13, 2010. A $78,418 check was issued to IPS on October 15, 2010.

The report also noted violations of Sections 8544, Negotiating for Nongovernment Employment and 8531, Use of Office, Staff or Employees of Public Office. Violations of CNMI Procurement and Supply Regulations were also exposed in the investigation.

The report states that both Fitial and Buckingham acknowledge the ethical concerns.

In April 2011 a report, Evaluation of the CNMI’s Oversight and Implementation of American Recovery and Reinvestment Act Programs, conducted by the CNMI Office of the Public Auditor and the Recovery Oversight Office, Office of the Inspector General of the U.S. Department of Interior was released. The report noted problems with the CNMI's ARRA funding including:

(1) recovery funds directly awarded to autonomous agencies fall outside the central Government’s visibility and control, (2) prior audit findings and risk management tools were not utilized to identify areas of potential fraud, waste and abuse and potential noncompliance with legislation and grant requirements, (3) monitoring functions performed by the finance department were not adequate with respect to transfers and receipt of recovery funds, and (4) expenditure and award information on the CNMI’s official website for Recovery Act programs was not current and complete.

It appears that the governor, the Attorney General and current and former CNMI officials are immune from prosecution and are free to violate CNMI ethics laws whether the violations involve issuing contracts to oversee the spending of federal dollars, or involve CNMI ethics violations and federal Hatch Act violations committed by CNMI officials during elections.

Again, the U.S. Department of Justice should issue a statement informing the public and federal tax payers why this investigation will not be prosecuted.

See these previous posts for background information:
CNMI Abuses, October 26, 2010
Office of the Public Auditor Dropping the Ball? October 22, 2010
Contract Concerns Continue, October 21, 2010
OIA: "We don't want people messing with our money." October 19, 2010
Just as Suspected, October 18, 2010
Ada Steps Down as Commerce Secretary and Lands Contract From Governor, October 16, 2010

Read the DOI Report on the Investigation: