GOVERNOR Ralph DLG Torres on Friday said “there is nothing political” in giving money to small business owners through the Building Optimism, Opportunity and Stability Together program which is funded by the American Rescue Plan Act.
Meanwhile, the House Judiciary and Governmental Operations Committee and the House Ways and Means Committee will hold a joint meeting today, Monday, Nov. 21, to discuss their request to Finance Secretary David DLG Atalig for information pertaining to BOOST.
The JGO chair, Rep. Celina Babauta, D-Saipan, said they may issue a subpoena duces tecum to compel the Finance secretary to provide them with information about the names of approved and disapproved BOOST applicants and the funding source of the program.
Atalig’s deadline to submit the documents was on Friday. As of Saturday, Babauta said they had yet to receive the requested information from the Republican administration.
Eligible expenditure
The Office of the Governor issued the following statement on Friday:
“As Gov. Ralph DLG Torres has stated many times before, there is nothing political about providing our community, our businesses, our non-profits, and anyone who seeks assistance to fulfill their dream, an opportunity to grow, especially after the negative economic impacts of the global pandemic.
“The BOOST program is an eligible expenditure under ARPA, because it provides direct assistance to small businesses and nonprofits within a given community. We remind political opponents that when they question a legal and proper expenditure in line with U.S. Treasury guidance, they denounce the work being done to help young people and entrepreneurs pursue their dreams.
“Our young entrepreneurs deserve opportunities in the same way that we as elected officials use the opportunities given to us to serve our people.
“The BOOST Program expands opportunities and enhances our independent abilities to diversify our economy, so that when tourism is fully recovered, people have an income to use to do business in a post-pandemic economy. We thank all our volunteers, our private partners, and government agencies for working hard to give people an opportunity to realize their dreams through hard work and passion.
“Passion should always be prioritized over politics, and it is unfortunate that certain people are politicizing a proper expenditure allowed under ARPA for economic recovery for selfish interests and personal agendas, and are overlooking our young and aspiring entrepreneurs that are looking for help to pursue their passion for our community.”
Follow-up letter
Rep. Babauta sent Atalig a follow-up letter on Friday:
“On November 15, 2022, the House Standing Committees on Ways and Means and Judiciary and Government Operations…wrote to you requesting 4 categories of documents relating to the Building Optimism, Opportunities and Stability Together Program. We asked your respective office/ department to produce these documents by today, November 18, 2022.”
Babauta said Finance had failed to comply in any way with the committees’ request and had not even sent a formal reply.
She said by withholding the documents and/or refusing to engage with the House committees, the Finance Department “is obstructing the inherent duty under the Northern Mariana Islands Constitution and statutes to protect our Commonwealth’s democratic process.”
Babauta said, due to the urgent matters before the committees, they will “have no choice but to move towards compulsory process next week unless the department/your office produces the documents we have requested.”
‘There’s nothing to hide here’
In an interview, Torres said the House probe is based on “misinformation” and “false allegations.”
“We get accused for so many things,” he added. “They throw names in there that have been paid. Again, it’s misinformation and false allegations. This is the practice that they have been doing.”
“They’ve been throwing rocks, and I hope the community sees that,” the governor said. “You want information? Ask for it. You’ll get the information you need, instead of going out and trying to bash other people — innocent, hardworking people.”
Secretary of Finance Atalig said the program is “designed to help our small businesses,” adding that it was an idea conceived when “we got the [American Rescue Plan Act] funds.”
The spending plan for these funds includes $10 million for small businesses. He said there are no other funding sources for the BOOST Program.
He said the Bank of Saipan was brought on board because of its employees’ experience in processing loan applications in compliance with U.S. Treasury regulations and guidelines.
“It would have needed an additional five to six staff members full-time in my office to handle small businesses,” he added.
Atalig said the process involves a lot of work and a lot of paperwork, and “that’s why the bank was selected… It’s because of the fact that they have the staffing to review loans. They [understand] that and they do that every day. My staff do not do that. We are not a bank. We are not a provider of loans.”
He added, “We tried to contact the Commonwealth Economic Development Authority, but they weren’t ready at the time to administer [the program].”
Atalig said the BOOST Program helps small businesses and those who want to start reliable, legitimate businesses to help contribute to the islands’ economic tax base.
As for the House inquiry into the BOOST Program, Atalig said he has already requested information from the grant administrator, Bank of Saipan President and Chief Executive Officer John Z. Arroyo, who was off-island.
Atalig said as soon as he receives the requested information from Arroyo, he will forward it to the House.
“There’s nothing to hide here. [Bank of Saipan] are the administrators…. We provide the funding and they do their due diligence,” Atalig said.
BOOST program applicants form a line outside the Bank of Saipan building in Chalan Laulau.
