Pai recuses self from OPA probe on sole-source ARRA contract award

Public Auditor Michael Pai has recused himself from any involvement in a requested investigation into the Fitial administration’s almost $400,000 sole-source ARRA management contract to former Commerce secretary Michael Ada’s Integrated Professional Solutions back in October 2010.

Pai cited perception of conflict of interest in recusing himself from the Office of the Public Auditor investigation, as requested by an adopted Senate resolution in August 2011.

In a letter to Senate President Paul Manglona (Ind-Rota), Pai said he delegated OPA legal counsel George L. Hasselback to act on his stead “and have ultimate responsibility for the investigation, analysis, and prosecution of any wrongdoing that may be discovered as may be appropriate.”

“He (Hasselback) will, in effect, stand in my shoes as Public Auditor for the purposes of this investigation,” Pai told Manglona.

Manglona declined to comment on the matter at this time.

Pai apologized for the delay in responding formally to Senate Resolution 17-63, adopted in August 2011. SR 17-63 requests OPA to supplement a U.S. Interior Inspector General report on the CNMI ARRA management contract with its own report and recommendations to the CNMI Legislature.

The Senate resolution was authored by Sens. Juan Ayuyu (Ind-Rota), Pete Reyes (R-Saipan), Jude Hofschneider (R-Tinian), and Jovita Taimanao (Ind-Rota).

Pai and Attorney General Edward Buckingham have not been seeing eye-to-eye on a host of issues including the sole-source ARRA management contract.

Back in December, Gov. Benigno R. Fitial told OPA to remove itself from any role re-investigating the award of the ARRA management contract.

Fitial blamed the public auditor for failing to raise ethical concerns back in October 2010 when the governor asked him to review the possible sole-source contract for OPA clearance.

Both Pai and Buckingham are Fitial’s appointees.

Pai, in his two-page letter to Manglona yesterday, said there have been many accusations, both personal and professional, claiming that there exist impermissible conflicts preventing him from being capable of continuing the investigation mandated by Senate Resolution 17-63.

“I would like to first assure you that there are no legitimate grounds to support these accusations, and that I stand ready and willing to continue to discharge my duties as public auditor, free from any actual conflict. Since some of these accusations surround events outside of my direct control, however, there may remain a perception that these allegations of conflicts of interest may have some merit,” Pai told Manglona.

Sen. Frank Cruz (R-Tinian), chairman of the Senate Committee on Executive Appointments and Government Investigations, said yesterday he looks forward to the OPA report on the ARRA contract award.

Cruz said this investigation is separate from the Senate request to also investigate Buckingham related to the sole-source ARRA management contract award and his alleged hosting of a delegate campaign in the 2010 elections.

Cruz said the NMI Bar Association, which the Senate asked to investigate Buckingham, referred the matter to the Judiciary. Cruz said he believes Superior Court Presiding Judge Robert Naraja is the one handling the matter but he has yet to get an update on this.