He said he was “clarifying” yesterday’s Saipan Tribune’s report which claimed that “fraud is found in some ARRA funds use.”
Ada said the fraud and lies were made by some companies submitting requests for proposal to be eligible for a contract funded by ARRA.
But he said those companies were not granted any funds because the local ARRA office and the Attorney General’s Office found out that the proposals they made were fraudulent and contained false information.
He said an investigation is ongoing.
Ada did not disclose the names of these companies, but added that they will be debarred from applying for contracts with government projects.
For a company to be eligible for a contract with the government regarding ARRA projects, it must submit a proposal and pass certain requirements.
Sometimes, Ada said, some companies “try to deceive us so they can win the contract.”
“That is the fraud we are talking about,” he said. “It is not the local ARRA office, nor the government, but those who are applying for the grants who made lies.”
He added, “There is a miscommunication between [the Tribune’s] reporter and ARRA’s communications manager.”
