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Missing money: Governor's chief of staff moves millions into special account


by Mindy Aguon, KUAM News
Friday, November 19, 2004

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Since they were elected into office, the Camacho/Moylan team has had numerous disagreements. As time has passed, despite efforts to get Governor Felix Camacho and Lieutenant Governor Kaleo Moylan to reunite, the rift between them has only grown. It appears with actions taken by the Governor's chief of staff, communication between the two offices has now completely shut down.

While the governor is off-island, his second-in-command was left with a half-million dollar surprise. As KUAM News did some more research, we confirmed the two top public safety agencies are left with a million dollars less in lapsed funds, as the Governor's Office has transferred all of the money into their accounts.

With Governor Camacho off-island, Acting Governor Moylan was in for a surprise Thursday when he learned his office was missing $500,000. According to Bureau of Budget and Management Research documents, Governor's chief of staff Tony Sanchez requested $189,000 be transferred from the Lieutenant Governor's Office and the Guam State Clearinghouse to the Governor's Office. Sanchez also requested another $310,000 be transferred out of the Lieutenant Governor's account and placed into the Governor's Office.

Legislative Vice-Speaker Frank Aguon, Jr. confirms the Governor advised him of several recent transfers of money, adding that the Governor is required by the budget law to provide notice to the Legislature of any transfers within ten days' time. According to a copy of the notice provided to lawmakers, the half-million dollars from the Lieutenant Governor's Office's budget went to the Governor's Office to cover contractual services and office space rent.

While the island's chief executive and his chief of staff are away from Guam, senior advisor to the Governor George Bamba says under the law, Governor Camacho used his authority to transfer all lapsed funds from the previous fiscal year into a separate account at the Governor's Office. While the transfer report to the Legislature indicates the lapsed funds were going to cover contractual services and rent, Bamba says he doesn't know why that was put in the report.

The advisor says the money will be going to other agencies that may run out of money or need extra funds for increments or overtime. Bamba maintains the Governor would lose his transfer authority ability if the funds had not been transferred, and instead the money would have ended up back in the General Fund. Bamba confirms $1.2 million was transferred out of the Guam Police Department and $1 million from the Guam Fire Department.

With the money in the Governor's separate account, Bamba maintains that money can be transferred back to the agencies, if the need arises.

As for the half-million taken from the Lieutenant Governor's Office's budget, KUAM News has confirmed the money was put back into the acting governor's account late Thursday after the acting governor learned it had been transferred out. Bamba says he authorized the return of the money upon Acting Governor Moylan's request, adding as a matter of courtesy Moylan should have been notified - but wasn't.

Bamba maintains the transfers are the first of more to come, as BBMR continues doing a government-wide search for lapsed funds. Meanwhile, both the Guam Fire and Guam Police departments were not aware of the transfers. While the acting governor was able to get the half-million returned to his office, GPD and GFD are still left holding the short end of the stick, with $1 million less for each agency.

Bamba told KUAM News that he did speak to Acting Governor Moylan and relayed the Governor's apologies. Moylan's spokesperson, Phil Roberto, says Bamba indicated to the acting governor that the transfers were inadvertent and contrary to the Fiscal Year 2005 budget, which clearly separates the budgets of the two offices, as well as their respective lapses.

Roberto says corrections have been made and BBMR has since reversed the transfers back to the Lieutenant Governor's accounts. As for the transfers out of the Guam Police and Guam Fire accounts, Roberto says Acting Governor Moylan is not aware of those transfers, saying the Governor would have to answer for his actions.