Marianas Variety

Last updateSat, 21 Apr 2018 12am







    Sunday, April 22, 2018-8:29:15P.M.






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OPINION: Regarding CUC’s latest procurement fiasco

IN his letter to Marianas Variety on Monday, Fairbanks Morse Segment Manager David McCallum clarifies that Fairbanks Morse was not a partner to GPSM.

Here are a few quotes from his letter:

“Fairbanks Morse was not a “partner” to GPSM nor were they a signatory to the agreement between GPSM and CUC.”

“Fairbanks Morse has submitted a letter of withdrawal (dated April 13, 2017) to Robert Toelkes, GPSM, officially retracting its proposal for the project as sub-contractor and requesting receipt of official termination of their relationship with GPSM.”

So what does this mean, exactly? It clarifies that there never was a partnership.

However, in the RFQ submitted by GPSM president Amelia Toelkes, they used a letterhead with the Fairbanks Morse logo at the top of the RFQ introduction that appeared at the top as a letterhead adjacent to the GSPM letterhead.

Furthermore, they claimed to have teamed up and that they are in fact working together and have collaborated on multiple successful projects, which turns out to be completely untrue.

At our House hearing for CUC on April 11, CUC legal counsel James Sirok stated during public comments that on the first day of negotiations, GPSM’s spokesman and representative, Guam Sen. James Espaldon claimed there was a partnership between GPSM and Fairbanks Morse (the contract could only go through if the RFQ had an OEM, or Original Equipment Manufacturer, and GPSM claimed Fairbanks Morse was their partner).

On the second day of negotiations, Espaldon said that GPSM would be the main contractor and that they would purchase the engines from Fairbanks Morse.

Incidentally, Espaldon’s chief of staff for his Guam Senate office is Philip Roberto, who is also the vice president of GPSM. Roberto is also the stepson of CUC Board Chairwoman Adelina Roberto. Chairwoman Roberto also notarized the articles of incorporation for GPSM, but claims that her stepson, Philip Roberto, did not have his name on the articles of incorporation when she notarized it, which means it must have been added on after she notarized it, which would be illegal.

What is important to remember is that Amelia Toelkes, who is the president of GPSM, was never present at any time during the negotiations of the RFQ. But her husband, Robert Toelkes was present, as he was the local representative for CapFA. Robert Toelkes was trying to have the generator financed through a third party lender named CapFa. CapFa is the same lender he tried to use to sell CUC a reverse osmosis system for $160 million and the same lender he used for Guam’s JFK High School contract that is now going to cost the government of Guam $202 million, even though the value of the contract was estimated at $65 million (

Robert Toelkes claimed that CUC would not have to get the Legislature’s approval for the finance loan, but fortunately, CUC counsel Jim Sirok insisted they did have to, so the agreement was never signed.

Among the many red flags we have uncovered, what I find perplexing is the fact that Fairbanks Morse submitted a letter of withdrawal to Robert Toelkes, who is not listed anywhere on GPSM’s articles of incorporation, instead of submitting it to his wife, Amelia Toelkes, who is the president of GPSM.

Why would Fairbanks Morse address Robert Toelkes if he is only a local representative for a stateside loan corporation?

The numerous conflicts of interest, the fraudulent information submitted in the RFQ, the insistence that the CUC board approve the GPSM contract even after CUC management and their legal counsel advised them not to, are deeply troubling.

We hope and pray that the Office of the Attorney General, the Office of the Public Auditor, and the FBI work together in investigating this RFQ that involves people from Saipan, Tinian, Rota, and even Guam.

CUC rate payers deserve better than this.

* * *

The primary duty of a notary public is to verify the identities of each signer on a document. This is done to protect against fraudulent acts that may otherwise void the notarized document. The notary public typically requests each signer to provide identification that verifies their identity. If the client fails to provide an acceptable form of identification, the notary public is legally obligated to refuse the service.

CUC Chairwoman Adelina Roberto was the notary public for the articles of incorporation for General Pacific Services Marianas, or GPSM.

During a PUC House Hearing for CUC on April 11, CUC Chairwoman Adelina Roberto, who refused to take an oath to tell the truth, stated when questioned about the notary public that only Amelia Toelkes and Kimberly Smith had their names on the articles of incorporation that she notarized and that the vice president of GPSM, Philip Roberto, who is also her stepson, did not have his name on the articles of incorporation and was not present.

Furthermore, she stated that she had no idea that Philip Roberto was the GPSM vice president.

Chairwoman Roberto also claimed that she had no idea that her fellow CUC board member Albert Taitano was the agent for GPSM.

At this point, if what Chairwoman Roberto is claiming is true, then she needs to be asked to testify against GSPM president Amelia Toelkes for adding her stepson Philip Roberto’s name on to the articles of incorporation after she had notarized it.

It is illegal to amend any document after it has been notarized, so I look forward to Chairwoman Roberto pressing formal charges against GPSM president Amelia Toelkes.