Pai: IG report leak was not from OPA

Public Auditor Michael Pai yesterday denied accusations that he leaked the Inspector General investigation on the Fitial administration’s $392,406 sole-source contract with former Commerce secretary Michael Ada’s firm.

The Office of the U.S. Attorney for Guam and the CNMI, meanwhile, released a statement to Pacific News Center saying that the IG report on the Commonwealth’s management of ARRA funds is currently pending and under review.

“We are unable to comment on the U.S. Department of the Interior, Office of the Inspector General’s report as the matter is currently pending and under review by our office,” the statement reads.

Forced response

Attorney General Edward Buckingham last Sunday lashed out at Pai in a press release to Saipan Tribune for failing “to ensure the confidentiality of OPA documents.”

Although usually reticent about making public comments, Pai said he believes that a response to Buckingham’s allegation is required.

“I take the responsibilities entrusted to OPA very seriously. One of those responsibilities is to maintain certain records in a confidential manner. I have taken, and always will take, all reasonable and necessary steps to ensure that confidential records are maintained confidentially, including dealing severely with any OPA employee or contractor who violates such confidentiality requirements,” he said.

Pai said OPA didn’t have a hand in leaking the IG’s report on the privatization of CNMI ARRA funds to the media.

“No circumstances have been presented to me to indicate any breach of our confidentiality standards. The complained of record was distributed to numerous other CNMI and federal government officials,” he said.

The public auditor added that a copy of the report was issued in redacted form and can be accessed thorugh: http://www.doioig.gov/images/stories/reports/pdf/CNMIARRAManagement%20-%20Public.pdf

“Why OPA has been accused of such a leak I do not know or understand,” he said. (See full text of Michael Pai’s statement on Page 11)

Pai, meanwhile, confirmed that OPA is in the process of routing a contract with the Law Offices of Sean E. Frink to represent them at a discounted hourly rate in the attorney general’s lawsuit.

“Having to hire an attorney to handle a lawsuit filed by one government official against another is not something that I would like to see government spent money on. Unfortunately, the subject matter of the lawsuit requires outside counsel due to conflicts of interest with existing OPA attorneys,” he said.

Pai said other allegations the attorney general raised in his press release to the Saipan Tribune, is better answered face to face.

“As to the other allegations contained in the Tribune article, I respectfully disagree and urge the Attorney General to address any issues with me and the way that my office is run, directly with me, rather than meeting with the press.”

What will happen to ARRA funding?

Human rights advocate Wendy Doromal, for her part, hopes the “apparent violations” of CNMI procurement and ethics rules and regulations of Ada’s sole-source contract wouldn’t hurt the islands’ chances of getting more ARRA fundings.

“It was apparent last October that the awarding of the ARRA contract to Ada raised questions, which is obviously why the DOI Inspector General and the Office of the Public Auditor conducted investigations. The DOI report revealed that there were indeed ethics and procurement violations, and stated that the contract was null and void. So the question now is, will any federal funds have to be returned and is remaining ARRA money in jeopardy because of the violations?” she said.

Doromal said as a federal taxpayer it is disappointing to keep hearing about the misuse of federal funds in the CNMI.

“Whether it’s with an Arts Council grant, an Americorps grant, or ARRA funding, the refusal of the offending parties to take responsibility for the violations, the lame excuses and the ridiculous and unfounded criticism of Congressman Sablan is disturbing. The fact that the U.S. AG declined to prosecute the case is also perplexing,” she said.