THE U.S. Department of the Interior has barred businessman Jesus S. Sablan and his Sablan Construction Co. Ltd. from participating in federal projects for a three-year period.
The ban order took effect last March 1 and was issued by Debra E. Sonderman, director of the department’s Office of Acquisition and Property Management.
Variety contacted Sablan yesterday for comment, but a staff said he was not available. Brien Sers Nicholas, counsel for Sablan and Sablan Construction, refused to comment.
According to Sonderman, the decision was based on Sablan’s plea agreement with the U.S. Attorney’s Office in which the businessman admitted committing bribery in federally funded projects.
“Your documented actions clearly exhibit a lack of business integrity, and you have not demonstrated any change in your business practices,” Sonderman told Sablan in her Feb. 27 letter, a copy of which was obtained by Variety yesterday.
The director said Sablan and his company will be excluded from acting as either participants or principals in transactions involving the executive branch of the federal government.
Covered transactions include grants, cooperative agreements, scholarships, fellowships, contracts of assistance, loans, loan guarantees, and transactions that are charged as direct or indirect costs by assistance recipients.
Sonderman said debarment does not affect any statutory entitlements such as insurance for deposited funds, transactions with foreign governments, personal entitlements, federal employment, or disaster-related benefits.
The director told Sablan that his attorney in a letter dated Dec. 12, 2001 attempted to recast his actions as “an innocent misunderstanding.”
“I find this unwillingness to acknowledge the seriousness of your criminal conduct to be evidence of your continuing unsuitability as a government business partner,” she told Sablan.
Sonderman added that in some circumstances, “installation of new corporate officers can indicate a change of management direction sufficient to mitigate against imposition of debarment.”
However, “in this case, installation of your daughters as vice president and secretary/treasurer respectively does not sufficiently insulate the new managers from your influence,” she said.
Sonderman said Sablan “appears to remain very much an integral part of the company since his retirement and in fact retained status as a majority stockholder.”
She added, “I am convinced that there is a high risk that the (federal) government’s interests would be compromised by further dealings with yourself and Sablan Construction.”
