No fees for storage of rock crusher and conflict of interest disclosed

This is in response to the article that was published in the Marianas Variety on Monday, July 17, 2023, titled “Official: Rock crusher storage at Rota harbor should not cost government money.” As mayor of Rota, I believe it is important to respond to all information that I believe is inaccurate. If asked directly, I would have gladly shared factual information regarding the status of the rock crusher equipment.

Background

Former Mayor Efraim Atalig sought the assistance of the Office of Grants Management to procure a rock crusher needed to produce construction materials such as sand and aggregate. OGM was awarded funds to procure the equipment, transport it to Rota and deliver it to an identified location on Rota. The container carrying the crusher equipment arrived on Rota on Dec. 5, 2023. When the equipment arrived, there were many copper wires attached and exposed. For safety purposes, the former mayor thought it was prudent to leave at the port where the equipment would allow for greater security.

As a result, the municipality sought the assistance of the Rota Transportation Terminal and entered into an agreement to waive all storage fees until the municipality can identify the location. Part of the transportation contract included the delivery and set up of the crushing equipment. Since there has been no identified location, the rock equipment continues to sit at the port site. Again, there are no fees associated with the storage of the rock crusher at its current location.

Bidding

Since I entered public office, I have tasked my staff to email and inquire information from the Division of Procurement Services regarding the bidding process on Rota for the rock crusher. We completed a bidding application and were told we needed to submit a letter identifying the requirements for the bid. We submitted a letter to the Procurement Office on Feb. 23 for the bidding process to avoid any potential impropriety. I received a letter from acting director Brien San Nicolas regarding the process and he provided guidance on how to proceed, especially after disclosing my relationship with the current vendor who has an operating quarry license.

Conflict of interest

I would like to point out that since the beginning of my inquiry regarding the rock crusher, I have disclosed information of my relationship to the current business vendor that has a quarry operating permit. I was then advised to recuse and withdraw myself as the expenditure authority from any dealings with the rock crusher. I was also advised that since public funds were not expensed, that the municipality could enter into a public private partnership, or PPP, pending approval of the contract by the Office of the Attorney General. This PPP agreement would allow a local vendor to operate the equipment and pay a royalty fee to the municipality to generate local funds to support our operation.

As a result of the letter given to my office, I submitted a letter addressed to the acting director of Procurement Services on May 18, 2023, as my statement of disqualification and appointed Jim Atalig, who currently serves as the chairman for the 19th Rota Municipal Council. Since then, chairman Atalig has been the one responsible to represent the municipality and the only one participating in any negotiations, correspondence regarding the rock crusher.

I hope this will clarify and make it known that all procurement policies and procedures have been followed. We live in a small community and ask that our people continue to work together toward helping build a productive Rota. I ask that our Rota leadership continue to communicate and collaborate with one another so that we can continue to work for the best interest and welfare of our people. I strongly believe we can build Rota to a standard that we can all be proud of that will safeguard our island for the benefit of our children and their future generation.