Asked yesterday if he agrees that IPS should return the money now that the Department of the Interior’s inspector general found the contract to be null and void, the AG said “no.” He declined to elaborate.
Congressman Gregorio Kilili Camacho Sablan, in an email, said the “implications” of the contract’s invalidity “may be a matter for the appropriate law enforcement agencies and legal authorities to answer.”
His primary concern, Sablan said, is to ensure that ARRA funds, one of the very first pieces of legislation he voted for as a member of the U.S. Congress, “are not wasted, but are used as effectively as possible to stimulate economic activity and keep people working in the commonwealth.”
Sablan said the CNMI people should not be once again, “punished for the unfortunate acts of a handful of individuals.”
IPS, which is headed by former Commerce Secretary Michael Ada, issued the following statement yesterday:
“IPS very much understands and appreciates the interest and concern that has been generated by the recent inspector general’s report. IPS would like to be as responsive to public concerns as it is able.
“As required under the contract, IPS has assisted with the management of ARRA funds, and this work has directly benefited the people and economy of the CNMI in ways that should be apparent to all who live here. The following are just a few examples of these projects:
“1. Direct funding of 91 staff salaries for the Public School System
“2. 6,100 netbook computers provided directly to CNMI public school students
“3. 1,225 new street lights throughout the CNMI
“4. Numerous, system-wide construction projects for PSS, and
“5. Four new energy efficient [Commonwealth Utilities Corp.] turbochargers
“Again, these are just a few of the projects with which IPS has assisted. IPS continues in its efforts, in close collaboration with numerous public agencies and private companies and entities, to efficiently and effectively manage the ARRA funds that have made these and other completed and ongoing projects possible.
“ARRA funds allocated to the CNMI, including those funds allocated but not yet spent, should not be in jeopardy due to the current controversy.
This perception among some members of the public seems to be based upon a misunderstanding of the way the relevant funds are allocated, administered, and used. IPS and its staff will work to correct these misunderstandings in the coming days and weeks.
“IPS would like the public to note that the inspector general did not find any violation of federal law in its report, nor did it identify the misuse of any ARRA funds. There has been no such misuse of funds by IPS. IPS would also like the public to know that IPS and its staff, particularly Mr. Michael Ada, have fully cooperated with the investigation process.
“IPS does understand that the report identified possible violations of CNMI Ethics and Procurement requirements. IPS must, however, reserve comment on these issues pending further statement by the Office of the Public Auditor.
“IPS has provided quality and consistent service to the CNMI government, its agencies, and vendors. IPS has offered guidance to address and facilitate payment issues, answered questions on the allowable uses of ARRA funds, assisted with program compliance requirements, and performed numerous other services as required under the contract.
“IPS and its employees remain proud of their efforts and the results they have achieved, and will continue to achieve, for the benefit of the CNMI.”
