GPA to receive $5.1M from settlement - KUAM.com-KUAM News: On Air. Online. On Demand.

GPA to receive $5.1M from settlement

Posted: Updated:

by Janjeera Hail

Guam - The Guam Power Authority is getting an early Christmas present this year - $5.1 million. Bank of America is paying out millions to agencies all over the country, including GPA, as part of a settlement agreement for misconduct related to insider deals.

The Guam Power Authority is slated to receive about the money in restitution from BOA as part of a settlement agreement for the bank's involvement in a conspiracy to rig bids in the municipal bonds derivative market.  According to Consolidated Commission on Utilities chairman Simon Sanchez, Bank of America was a financial advisor for the Government of Guam during the Joe Ada and Carl Gutierrez administrations, and had handled the 1993 and 1999 GPA refinancing bonds.

Sanchez explained, "When you borrow money on the bond market, you don't spend it all at once so you have these large amounts of money that sit there and what you do is you invest them until you need to draw down when projects need money."

According to the Justice Department, Bank of America came forward and reported its own wrongdoing before the department began its investigation into anti-competitive conduct inside the industry. "They were supposed to invest this money and get the most money for the Guam Power Authority," the chairman said. "But apparently they didn't go out for straight forward bids. They went out for bids that they were basically awarding to their friends or someone's friends and a senior person at bank of America has pleaded guilty to, essentially, insider trading."

Bank of America has agreed to pay out a total of $137.7 million to various federal and state agencies and, because of its voluntary disclosure, will not have to pay penalties.  Sanchez says that while Bank of America's actions may have cost GPA, this settlement makes up for that. 

"To me, it's a positive no matter what," said Sanchez. "And usually when they do this they calculate what the interest rate should have been and they bring it forward all the way to today and I think in that $5 million is us recapturing all that lost investment. So, it's kind of like an extra savings account. There's $5 million we should have had 17 years ago or 11 years ago. We have it now with interest and now we can use it."

GPA executives are currently looking into the laws and bond agreements to determine how the money can be used - whether for capital improvement projects, operations, or to pay off loans.  A report on that is expected during next week's CCU meeting.

  • NEWS HEADLINESMore>>

  • Derrick Baza Hills back in court for theft

    Derrick Baza Hills back in court for theft

    Back in court - this time, for theft charges. A violation notice was filed in the District Court of Guam against Derrick Baza Hills. Back in December 2017, the former senatorial and Agat vice mayoral candidate reportedly stole less than $100 worth of items from the Navy Exchange. He already faces several other charges involving prescription drugs and theft in the local court. He'll make his first appearance in federal court on March 6.More >>
    Back in court - this time, for theft charges. A violation notice was filed in the District Court of Guam against Derrick Baza Hills. Back in December 2017, the former senatorial and Agat vice mayoral candidate reportedly stole less than $100 worth of items from the Navy Exchange. He already faces several other charges involving prescription drugs and theft in the local court. He'll make his first appearance in federal court on March 6.More >>
  • Dededo students march for world peace

    Dededo students march for world peace

    Rain or Shine, these Roadrunners want World Peace. Benavente Middle School hosted their 8th annual March for Peace Thursday morning. Students, along with Superintendent and members of the Board, marched to Maria Ulloa and Wettengel Elementary, with signs promoting peace. Principal Patrick Egrubay said, "Peace is something that each of us should strive for, especially more recently we know that there's tragedy that's going on across the country and around the world, we want our s...More >>
    Rain or Shine, these Roadrunners want World Peace. Benavente Middle School hosted their 8th annual March for Peace Thursday morning. Students, along with Superintendent and members of the Board, marched to Maria Ulloa and Wettengel Elementary, with signs promoting peace. Principal Patrick Egrubay said, "Peace is something that each of us should strive for, especially more recently we know that there's tragedy that's going on across the country and around the world, we want our s...More >>
  • Bomb threat made to Guam High

    Bomb threat made to Guam High

    Guam High School and surrounding homes at Naval Hospital have been evacuated after a bomb threat is called in Thursday afternoon. The threat specifically targeted the school. GPD and Navy police are sweeping the area with K-9 units. The Naval Base Guam Explosive Ordnance Disposal unit is standing by in the event anything is found. Guam Homeland Security officials say all measures are being taken to ensure the safety of the public and first responders involved.

    More >>

    Guam High School and surrounding homes at Naval Hospital have been evacuated after a bomb threat is called in Thursday afternoon. The threat specifically targeted the school. GPD and Navy police are sweeping the area with K-9 units. The Naval Base Guam Explosive Ordnance Disposal unit is standing by in the event anything is found. Guam Homeland Security officials say all measures are being taken to ensure the safety of the public and first responders involved.

    More >>
Powered by Frankly