THE Independent-Democratic-led House Committees on Judiciary and Governmental Operations, and Ways and Means on Friday conducted a joint hearing on the outgoing Republican administration’s Building Optimism, Opportunities, and Stability Together or BOOST program.
Appearing before the committees, the governor’s chief of staff Wil Castro was asked by Rep. Leila Staffler if he has special relationships with Bank of Saipan President John Arroyo or any of the bank’s employees.
Castro said he has no relationship, filial or business, with Arroyo.
When Rep. Tina Sablan asked him if he has personal relationships with any of the owners of the bank, Castro said, “I don’t even know who the owners are. Could you enlighten me?”
Staffler then presented a thread of WhatsApp messages between Castro and a BOS official that occurred on Nov. 18.
In the conversation, Castro told the BOS official, “I don’t forget my friends.” He also said, “John has been good to me in the past,” and “Now I met you, I got your back. Watch mine.”
Staffler told Castro that this conversation indicated “favoritism.”
Castro said, “No, I don’t agree. Those who know me well, may probably attest to the fact that if you left a favorable impression upon me and my family, if you treated us with due respect and accord, then I will forever hold you in the highest regard and esteem. That applies to you, too, senator-elect,” he added, addressing Rep. Celina Babauta, the House JGO chair.
Castro said he considers Arroyo his friend and has had positive exchanges with him in the past.
But to be clear, he said, he has never been to Arroyo’s house, and they are not in the same circle of friends.
“I do consider him my friend, but, if I may so express, that friendship in no way has been translated as overt advocacy toward him or the institution he represents, a contract, for and on behalf of the BOOST program,” Castro said.
He added that Arroyo, to the best of his knowledge, has been an outstanding professional and he, Castro, always appreciated the respect he, Arroyo, has shown him. It means a lot to him, Castro said.
Citing letters from Finance Secretary David DLG Atalig, Castro also informed the House members that $6 million in American Rescue Plan Act funds were recently allocated to BOOST in addition to the $11 million in ARPA funds initially allotted to the program.
He said the Finance secretary is the authorized signatory for the BOOST program, but he, Castro, would, “to the best of my ability and in a spirit of cooperation,” respond to the House members’ questions based on his recollection and knowledge.
Asked who decides how much ARPA funds go to BOOST, Castro said, “It’s beyond the realm of my knowledge who decided the amount but I would suspect the Finance secretary is the authorized signatory so I would have to assume, otherwise I will stand to be corrected, that it would be the Finance secretary upon advice and consent of the governor. It’s not me.”
Castro said BOOST applications are submitted to the Bank of Saipan, which was tasked as the administrator of the program.
Once the local bank checks if the applications meet the requirements, they are transmitted to a panel that will review the applications and make a recommendation to the governor “for his ultimate approval,” he added.
Castro is a member of the review panel for BOOST program applications. The other two members are Finance Secretary David DLG Atalig, and Commerce Secretary Edward “Tofila” Deleon Guerrero who, at times, would ask Commerce Economic Development Director Jesus Taisague to sit on the panel on his behalf.
The other House members who were present in the joint hearing were Ways and Means Chairman Rep. Donald Manglona, Vice Speaker Blas Jonathan Attao, Reps. Corina Magofna, Joel Camacho, Vicente Camacho, Richard Lizama and Edwin Propst.
Revitalize the economy
Following the hearing, Castro issued the following statement:
“The BOOST program is an initiative designed to revitalize the economy by providing federal relief funds to small businesses and non-profit organizations as well as fishers, farmers, and ranchers throughout the Commonwealth.
“This program has directly benefited hundreds of companies and has directly impacted thousands of lives.
“The source of funding is the American Rescue Plan Coronavirus State and Local Fiscal Recovery Funds, otherwise known as ARPA-CSLFRF.”
As a member of the review panel, Castro said his “job as I understand it to be is to review the submissions, or applications, and to confer with my colleagues on the review panel to make a recommendation of a list of applicants for review and approval by the Governor.”
The governor’s chief of staff, Wil Castro, answers a question during a joint hearing conducted by the House Committees on Judiciary and Governmental Operations, and Ways and Means Friday in the House chamber.
