As Commerce chief, Santos had outside business

At the time James Santos was serving as Commerce Secretary—a job that required him to regulate corporations in the CNMI—he was also involved in private business dealings with a Japanese corporation and continued with them long after his appointment by Gov. Benigno Fitial, as shown in newly uncovered government documents.

According to an annual corporation report filed with the Department of Commerce and obtained by the Saipan Tribune, James Santos in 2005 was serving as a registered local agent for the T.M.T. Corp., a photography and photograph developing company owned by a Japanese businessman. His wife, Joaquina Santos, is also listed as one of the corporation’s local officers.

Appointed first as acting Commerce secretary in January 2006, Santos continued to be paid by T.M.T. Corp. at least until around March 31 2006, as shown in a tax record that says he was paid $996.24 for the first quarter of that year.

Santos’ involvement in the corporation continued well beyond his appointment as Commerce’s official chief in May 2006, as noted in a Division of Employment Services and Training form he signed Nov. 11 of that year, which says he was still working as T.M.T.’s local “personnel manager.”

In an interview Thursday, acting Commerce Secretary Michael Ada—who replaced Santos last week—acknowledged that his department regulates corporate interests in the CNMI, adding he has already divorced himself from outside business dealings to “avoid any conflicts of interest” that might arise in his new job.

“Ethics are subjective,” Ada said. “I removed myself from any businesses that we regulate. I’m abstaining from entering into business simply because of my position. It’s important that I don’t put myself into a position that could be called into question down the road.”

As a government appointee, he said, “I’m on the clock 24-7, so that leaves little room for me to conduct side business.”

Earlier this month, authorities indicted the Santoses, Lt. Gov. Timothy Villagomez and former Commonwealth Utilities Corp. executive director Anthony Guerrero on three counts of conspiracy, wire fraud and theft involving federal funds over an alleged scheme to pilfer thousands of dollars from CUC through needless chemical purchases.

Villagomez and the Santoses have pleaded not guilty. In a deal with federal prosecutors, Guerrero has pleaded guilty to one count of conspiracy and will likely testify when the case reaches a jury trial in October.

Attorneys for the Santoses could not be reached. James Santos declined to comment.