The contract, which the U.S. Interior Department’s inspector general said may have violated CNMI procurement and ethics laws, was signed by Gov. Benigno R. Fitial, Attorney General Edward T. Buckingham and Procurement and Supply Director Herman S. Sablan.
“At the end of the day,” Demapan said people should realize that the contract was to ensure that the CNMI would make the best use of the ARRA funds.
The governor, he said, had to make the decision whether to avail of millions of dollars in funding or risk losing them.
Demapan said prior to the awarding of the contract to IPS, Commerce admitted it was not ready to administer all the ARRA projects.
Ada resigned as Commerce secretary and formed IPS.
Demapan said the administration recognizes the concerns of the report, but the governor, in making the decision to approve the contract, “felt that the benefits to the commonwealth in receiving the ARRA programs outweighed ethical concerns.”
Asked if the administration will nullify its contract with IPS which the inspector general described as “null and void,” Demapan said “not at this time.”
He said taking the money back from IPS is something that the administration has not decided at this time. The governor, he added, is reviewing the report.
Demapan said the administration cannot stop the Senate from conducting its own investigation of the matter.
When the Senate’s findings come out, the administration will address them accordingly, he added.
