Zaji Zajradhara
IN response to the federal court dismissing his second amended complaint, Zaji Zajradhara filed another amended lawsuit against former officials of the Building Optimism, Opportunities, and Stability Together or BOOST program, alleging violations of the Racketeer Influenced and Corrupt Organizations Act.
He is also claiming violations of his First Amendment rights and is demanding damages in the amount of $1.2 million for “lost opportunity.”
In his third amended complaint filed in the District Court for the NMI, Zajradhara named as defendants in their individual capacities former Finance Secretary David Atalig, former Economic Development Director Jose Taisague, Bank of Saipan President and CEO John Arroyo, and the Bank of Saipan in its corporate capacity.
Atalig, Taisague and Arroyo were involved in the implementation of the federally funded $17 million BOOST program, which provided grants and loan assistance to CNMI businesses and non-profit organizations.
Zajradhara also claimed that House Resolution 21-05, which labeled him as “persona non grata,” was introduced as a retaliation for his criticism of the CNMI government, and was “instrumental in systematically denying him access to federal funding programs.”
In addition, he said the BOOST program’s implementation lacked transparency.
“The absence of a formal application process, lack of public notice of meetings, and lack of records of review panel deliberations demonstrate a deliberate attempt to conceal potentially fraudulent activity. This lack of transparency and the overt discriminatory actions against Mr. Zajradhara directly caused a constructive denial of funding. The predominantly non-American composition of the entities involved in the receipt of federal funds and their potential lack of familiarity with American legal procedures underscores the CNMI government’s intent,” Zajradhara said in his complaint.
He attached a timeline of email communications with the BOOST officials “to illustrate a pattern of obstruction and delay,” and “highlight…the ‘constructive denial’ of funding and the timing relative to Zajradhara’s protected speech.”
On Nov. 7, 2024, Judge Manglona dismissed Zajradhara’s second amended complaint for failure to state a claim for which relief can be granted, but allowed him to file an amended complaint.
In his first amended complaint, Zajradhara accused the CNMI government, Bank of Saipan, Atalig, Taisague and the former governor’s chief of staff, Wil Castro, of conspiring to retaliate against him for exercising his First Amendment right to free speech and “constructively denying him equal access to federally funded programs and services.”
Zajradhara also accused the defendants of conspiring to defraud the United States government by “misusing and misappropriating American Rescue Plan Act funds.”
In March 2019, six House members introduced House Resolution 21-5 “to declare Zaji O. Zajradhara, formerly known as Steven Carl Farmer, a persona non-grata in the Commonwealth of the Northern Mariana Islands.”
According to the resolution, the Legislature is “cognizant of the malicious and ill-mannered actions of Zaji O. Zajradhara…in his filings of numerous labor claims against various businesses in the CNMI….”
The BOOST program, for its part, was the subject of several House oversight hearings.
