Local and federal investigations are underway into a local contractor who has multiple jobs with the Government of Guam.  One particular job the company is tasked to accomplish must be completed in three months or the government stands to lose $3 million in federal funds.  While there were allegations of political pressure to get the company paid despite the dismal performance, the public works director is now speaking out refuting the allegations.
 
"My team did not do what it was supposed to have done is what I'm saying," maintained Larry Perez.  The director of the Department of Public Works added, "And we're at a juncture now at the tail end when everything is due and I can't just say performance bond. You see there's a proper way, wording and timing and even reasonable of this of when you're going to serve these kind of activities."
 
DPW's top man contends it was his staff that dropped the ball when it came to staying on top of local contractor CHB and its agreement with the government to provide generators, water tanks and hardening shelters at five of the island's public schools.  The company's failure to perform has resulted in the threat of the government losing out on $3 million in federal funds if the work is not completed by August 15.
 
Explained Perez, "I'm down to the tail end of this thing, saying 'Guys, stop it - let's get to work.  I don't know what you guys are doing or not doing, but get to work.' But I'm saying get to work, finish this thing now. $3 million is at stake."  
 
Perez couldn't get into specifics on when he and deputy director Andy Leon Guerrero learned that his staff dropped the ball on ensuring that CHB was performing on its contract at five of the island's schools, saying a local and federal investigations prevent him from doing so.  
 
As we reported GPSS Disaster Recovery Office coordinator Fred Moser has documented two years of CHB's lack of performance on its contract with the government. Specifically, Moser estimates that CHB has done less than half of the work despite the fact the project should have been completed two years ago.  "I believe the chief issue is CHB's exaggerated invoicing practices it seems a pattern exists whereby CHB essentially attempts to get the government of Guam to finance their obligations," said Moser.
 
"Mr. Moser is right. I agree with Mr. Moser and it's for the same reason that the deputy and I are interceding now," Perez replied.
 
Despite the two years of documented evidence showing CHB's dismal performance, Perez says he presumed his staff were doing their jobs and wasn't made aware of how serious the situation was until the Disaster Recovery Coordination director informed him of the potential loss of federal money.  The agency is now working with the Attorney General's Office and is now pursuing the company's performance bond for failing to perform its work under the contract with the government.
 
While there were allegations that he forced his staff to sign invoices under duress and threat of termination and signed-off on invoices that other staff refused to sign, Perez explained, "All I know is that I don't force anybody to sign.  My communication, my email to my team is very explicit. Guys if a contractor rendered a service pay them if they didn't render then refute it, deny it.
 
"I force them to get to work. I force them to do what they're paid to do as public servants and if you don't do it then get out of DPW.  So if he's claiming duress, then yes, I'm duressing him to get to work."
 
As for a memo he sent out last month telling his staff to make friends with CHB, Perez said, "I'm basically in a desperate situation where I'm saying 'get another contractor guys, fine, hurry up or make friends with these people.'"
 
CHB president Cynthia De Castro meanwhile is scheduled to appear in Superior Court next week to find out when she will go to trial for allegedly giving DPW staffer Timothy Gonzaga a bribe.  KUAM News has also learned that Gonzaga allegedly didn't report the alleged bribery until several months later.
 
Meanwhile, FBI supervisory senior resident agent Karen Lewis tells KUAM News that she can neither confirm nor deny whether the local FBI office is in fact conducting an investigation into CHB and the possible misuse of federal funds.