$58M of $120M ARRA yet unspent

Federal tracking agency recovery.gov says the CNMI has already used almost $62 million but has yet to spend over $58 million of the more than $120 million in American Recovery and Reinvestment Act money awarded to the Commonwealth from Feb. 17, 2009 to June 30, 2011.

Recovery.gov updated its data for the CNMI on Saturday, July 30.

This was a few days after the U.S. Department of the Interior’s Office of Inspector General posted online an investigative report that says ethical and procurement rule violations may have been violated in the Fitial administration’s award of a $392,406 sole-source contract to former Commerce secretary Michael Ada’s company, Integrated Professional Services, to manage ARRA funds.

IPS said that ARRA funds allocated to the CNMI, including those funds allocated but not yet spent, “should not be in jeopardy due to current controversy.”

Gov. Benigno R. Fitial, who approved of the sole-source contract award, is still reviewing the IG report, having just returned on Sunday after almost a month of travel for medical reason and official functions.

Press secretary Angel Demapan, when asked for comment yesterday, said the IG report was delivered to the office when the governor was en route to Pohnpei.

“Having just returned, Governor Fitial will review the report and respond accordingly,” Demapan told Saipan Tribune.

The IG report says the U.S. Attorney’s Office for Guam and the NMI declined prosecution of the investigation, which was jointly done by the IG and the CNMI Office of the Public Auditor.

The Fitial administration and the CNMI ARRA Office have been repeatedly saying that the delay in spending ARRA funds is caused mainly by the “Buy America” waiver process, which could take up to four months.

As of June 30 this year, ARRA funds funneled to the CNMI totaled $120,242,621. Of this amount, $61,917,637 has already been received or spent. The remaining over $53 million has yet to be spent.

Of the 61 ARRA-funded projects in the CNMI, only eight have so far been completed. Three projects haven’t even started; 26 are more than 50 percent completed, while 24 are less than 50 percent completed.

Recovery.gov says ARRA has created or preserved 459 jobs in the Commonwealth in the second quarter of the year.

Some of the most recent contract awards posted on the CNMI ARRA Office website include a $785,421 contract to Pacific Cooperation Ltd. for the replacement and upgrade of air conditioners at Tinian Elementary School and Tinian High School.

Also recently awarded was a $696,000 contract, also to Pacific Cooperation Ltd., for air conditioners’ replacement and upgrade at Sinapalo Elementary School, Rota Junior High School, and Rota Junior High School.

AMX International was also recently awarded a $43,230 contract for a CNMI government financial management system upgrade project.

Delegate Gregorio Kilili Sablan has been reminding the Fitial administration to be faster in spending ARRA money that’s already been awarded it.