‘I recused myself because of association, not ownership’

Jesus Taisague, who is the Economic Development director at the Department of Commerce, clarified before the House of Representatives joint committee yesterday that he does not have financial interests in any of the five businesses that received over $1.2 million from the Building Optimism, Opportunities, and Stability Together program. Instead, he claims his recusal from reviewing these companies’ BOOST application was because of his association with their owner.

During the continuation of Taisague’s testimony before the House joint committee yesterday, he said he wants to put on the record that he does not partly own all five businesses that, collectively, received a total of $1.2 million from the BOOST program, the same program in which he serves as a panel member.

Instead, he claims that he only partly owns Love Birds Restaurant and serves as a resident agent for two others: Flower Tea House and Saipan Horse Course. As for Sakura Group and Saipan Goddess, Taisague said he felt it was a conflict to review these businesses’ applications as he is closely associated with company owner Alexandria Jing. Jing is the owner of all five companies.

“It’s a grave misunderstanding that I partially own all these five businesses. Let the record reflect [that] the only company I partly own is Love Birds restaurant. The reason I recused myself from reviewing the rest of the businesses is because of my association with these businesses, being a resident agent for two of these companies, namely Flower Tea House and Saipan Horse Course. The rest, it’s just business association,” he said.

The House Ways and Means Committee and House Judiciary and Governmental Operations Committee continue with their investigation of the Torres administration’s BOOST grant program yesterday. (KIMBERLY ESMORES)

However, following his clarification, Rep. Christina Sablan (D-Saipan) questioned Taisague about chief of staff and BOOST panel member Will Castro’s personal interest in all of Jing’s BOOST grant applications.

“Will Castro personally followed-up on the awards for Jing, namely Love Birds and Sakura group. Both were awarded early on into the program. How did all these businesses rise to the top of the stack? How are they so unique that Mr. Castro, a member of the review panel and chief of staff, would follow up on these applications and checks personally?” she asked.

“Do you expect people to believe that somehow these applications were all prioritized, somehow, without other intermission?” Sablan added.

Rep. Celina Babauta (D-Saipan) echoed Sablan’s sentiment.

“So you expect the people and this committee to believe that it’s purely coincidental that your partner Jing, who owns all these companies, was awarded over $1 million because they somehow rose to the top of the stack and that’s purely coincidental because of the uniqueness of her businesses?” she asked.

To this, Taisague said he has no comment.

“I have no comment because I recused myself from all of her applications. Whether it’s coincidental or what, I can’t comment,” he said.

During his first appearance before the committee last Tuesday, Taisague refused to give a direct answer when asked about the ownership of the five businesses and his relationship to them. Instead, he cited his Fifth Amendment right (protection against self-incrimination) to not answer those questions.

According to Saipan Tribune archives, on the BOOST program ledger that named all the BOOST awardees, all five businesses received a large portion of the over $10 million BOOST program allocation—about 11%.

Flower Tea House received $325,000, Saipan Goddess received $125,000, Saipan Horse Course received $200,000, Sakura Group received $50,000, and Love Birds Restaurant received two grants, one for $125,000, and another for $100,000. In addition, the companies were the very first to receive their grant awards.

The Commerce director claims he was not involved in the review process for his company’s applications as he had recused himself.

The House Ways and Means Committee and House Judiciary and Governmental Operations Committee are jointly looking into the BOOST grant program process.

Funded by the American Rescue Plan act, BOOST is project of the Office of the Governor and the Department of Commerce that aims to provide financial assistance in the form of grants to CNMI businesses and non-profit organizations.