HAGÅTÑA (The Guam Daily Post) — The Port Authority of Guam board of directors has been left one member shy of being able to make quorum, as eight lawmakers decided against passing the nomination for Judith Guthertz to continue serving as a director.
That outcome raised serious concerns for Port General Manager Rory Respicio, leading to some back-and-forth between the general manager and Sen. Joanne Brown, his immediate predecessor.
Lawmakers cast their vote on Port board nominees during this past session. Another nominee, Dorothy Harris, got the green light from the majority of lawmakers. But without Guthertz, only two board members remain seated at the Port and three are needed to form a quorum.
As the Port is now without a functioning board, Respicio urged opposing lawmakers to reconsider their vote on Guthertz, stating to most of them that their decision appeared to have been influenced by “the agenda” of another senator.
“Your decision to vote against (Guthertz), seemingly swayed by the agenda of another sitting senator, raises serious concerns about the prioritization of political considerations over the Port’s needs and our community’s welfare,” Respicio told all but one of the lawmakers who voted against Guthertz’s nomination.
Respicio later identified the “sitting senator” as Brown, the Port general manager before him. Respicio also wrote to Brown regarding concerns about “the prioritization of political considerations” over the Port’s interests, but he did not include the statement about being “seemingly swayed.”
However, to all the opposing senators, Respicio said their actions hampered the Port’s ability to effectively oversee and advance vital functions. Guthertz was also instrumental in the Port obtaining favorable credit ratings from S&P Global Ratings and Moody’s Investors Service, according to Respicio.
“The lack of a quorum for Guam’s most vital agency has the potential to jeopardize future rating reviews and reduce our credit rating reviews and reduce our credit rating status. And subsequent potential increases in the Port’s interest rates would have a negative impact on Guam’s entire economy,” Respicio stated.
Brown’s concerns
When asked for comment, Brown told The Guam Daily Post that Respicio is “very good at twisting words.”
“I have bills I would love to get voted on to be put on the session agenda and out of committee, if I’m simply influencing other senators,” Brown said.
“I think there’s a bigger issue here. The senators who attended the confirmation hearing for (Guthertz and Harris), the questions were asked on a number of key issues and the positions of these individuals as board members and the actions they took or didn’t take that, we thought, were in the public’s best interest,” she added.
A specific issue that stood out to Brown regarded a Port tariff, which she said wasn’t charged to a Guam Power Authority contractor that stored equipment at the Port. That tariff should be charged after a five-day grace period, according to Brown.
“Her position was it’s for the good of Guam. I very clearly read out what the statute requirements were, and she seemed to be consistent that she was doing it for the good of Guam. … Storage and loading and loading of cargo, under the tariff, is how the Port Authority makes its revenue. And when you selectively determine who has to pay these fees and who doesn’t, that’s when the opportunity for corruption arises. And the law does not allow for that,” Brown said.
“There’s a clear procedure if there’s any request to change what those tariff requirements are, that have to go through the (Public Utilities Commission). And I don’t believe that occurred with regard to the so-called waiver,” she added.
Hiring of relatives
Brown also raised issue with the possible hiring of relatives of board members during their tenure at the Port.
“Maybe that’s something you need to ask about in terms of these board members and the influence they may be having, especially at a time when we find out that the general manager, as a result of (the Harris and Guthertz confirmation hearing), when an inquiry was made, they said the general manager and his deputy were allowed to cash in their annual leave because it was the ending of the governor’s first term,” Brown said.
She added that she inquired about that issue because she didn’t believe “there’s any such thing” under autonomous agencies.
“That’s why board members’ terms overlap. It’s not connected to the governor’s first term or second term. I, as general manager, when I was there, did not cash in my annual leave when (former Gov. Eddie Baza Calvo) won his second term to office. I cashed in my annual leave, what I had available, when I actually stepped out and retired and separated from the Port,” Brown said.
Based on a Sunshine Act request by Sen. Thomas Fisher, Brown said it was her understanding that Respicio received $26,000 from cashing out annual leave, while operations Deputy General Manager Dominic Muna received $20,000 from leave.
“We have a responsibility (to ensure) that these board members are also performing responsibly. I first voted for Guthertz when she was appointed a couple (of) years ago. But when we see these types of actions occurring that are questionable, that may even allow the opportunity for corruption, … that’s a very big concern. And that’s a very big concerns as to why I did not vote for her reconfirmation,” Brown said.
Port responds
Some of Brown’s comments also were made to other media outlets, prompting a quick response from Respicio and the Port Authority.
The Port stated in a release that the board did not waive storage fees for the GPA contractor. An extension of free storage days was made under the authority of the Port’s tariff agreement and by Respicio, considering the unique circumstances and operational requirements of the power plant cargo that was being stored, the release added.
“This decision avoided undue cost transfer to (GPA) ratepayers,” the Port stated in the release.
As for Brown’s contention that this could cause corruption, the Port release stated extending the number of free storage days was a necessary response to challenges beyond the control of the power utility and its contractor.
“This decision was not influenced by any political agenda or negligence, but was made in the best interest of Guam’s ratepayers and the Port’s efficiency,” the Port said in the release.
Regarding hiring practices at the Port, the release stated that no immediate family member of Guthertz was employed during her tenure. All hiring practices have been compliant with regulations and reviewed by the Civil Service Commission, the Port added in the release.
Respicio also asked Brown to disclose the circumstances behind the hiring of her two former legislative staffers and several relatives of board members during her time as general manager of the Port. Respicio’s comments and the Port release go on to address other issues as well.
‘Upright citizens’
The Post asked Brown if she ever saw herself voting for any of the current Port board nominees, which include another former director and a former deputy general manager. There have been concerns with these other nominations, too.
“I think what the governor needs to do is find some upright citizens in this community, and there are a number of them that she can select from and recommend, including from the Democratic side of the aisle if that’s the case, that can serve on the board that will be responsible and not misuse and abuse the positions that they have,” Brown said.
“It’s not a personality issue as to why I didn’t vote for Dr. Guthertz. … I have nothing against her with regard to her credentials. … While she was confirmed, I did have an issue also with Harris. Because she is also just as responsible for these issues I bring forth,” Brown added.
While the Port board is now without a quorum, it wasn’t without some foresight on the current situation.
In late August, the board authorized a survivability clause, essentially allowing the fiscal 2024 budget authorization to remain until supplanted or the board says otherwise, in the event there is no new superseding annual budget promulgated by the board.
Respicio also was authorized to exercise discretion in increasing spending, up to 3% compounded, for each consecutive fiscal year after fiscal 2024.
The board also authorized the general manager to go before the Public Utilities Commission in the event the board does not have enough members to form a quorum.
The Port Authority of Guam container terminal is seen Wednesday, Oct. 25, 2023, in Piti.
