Port hearing heats up

by Sabrina Salas Matanane

Guam - An information briefing for the Port Authority lasted four hours. But it wasn't until the tail end of the hearing things began to heat up. It was after six pm when controversial issues such as the tenure of certain board members and the contract for the agency's legal counsel finally made it on the agenda.

The Democrats didn't let up and port general manager Joanne Brown wasn't backing down either. The former Republican senator was ready to respond. Up first Senator Tom Ada's concerns about the tenure of board members Dan Tydingco and Mike Benito who he believes terms' have expired and have been acting illegally. Ada has said it appears there was an oversight during the appointment process. He believes Tydingco and Benito were appointed to fulfill the unexpired terms of previous board members they replaced and therefore their terms would have expired.  Adelup and brown however argue they are serving a three year term and their appointments are valid. Ada has since asked for the attorney general to intervene and provide guidance.

Brown said, "Guess we'll all wait and see what they have to say." Ada said "OK and come April one could argue that the board would not be able to meet quorum because a third member would have then expired and also one could interpret that the board the legislature's confirmation of the board of the appointees was as to their fitness." Brown said, "You could argue that as well this could go beyond us it could go to court it could go in other direction but that's simply where we're at. All those questions that you're bringing up and the information you're providing could have been addressed at the time your committee previously addressed confirmation. Ada said, "Sure now everybody knows so we're now trying to rectify it."

Senator Rory Respicio pressed on. Asking acting port board chair Christine Baleto whether the topic was ever brought up during a board meeting. Baleto responded that it was but through email communication between board members which was later decided an oversight and that the position of the board was that their appointments were for three years.  Senator Respicio added that should the AG g take the position of the port and support the administration it makes a big opportunity for the legislature to seek remedy through the courts.

Respicio said, "But you're not concerned at all." Brown said, "I dont think it's a question of being concerned senator I'm sure we're all concerned in wanting to ensure the operations of the port because there's a lot at stake for everybody but at the same time at this juncture we have a disagreement. And that's where we're at, and we'll wait and what action from the attorney general or certainly the legislature decides to take action, we'll take it from there it's not going to be decided this evening here." Respicio said, "But consider the matter raised." Brown said, "I think it's been raised in the media certainly that's how we found out about it and certainly with the letter from Senator Ada."

As for the issue involving the port's legal services contract, Senator Respicio said he had specifically asked chairman Ada to include this on the agenda for discussion. According to port procurement manager Alma Javier she said the port's legal services contract with the lawfirm of Phillips and Bordallo took effect in May 2011 to replace the previous law firm of Lujan, Aguigui and Perez. The contract was renewed in May 2012 with a cap of $499,999 on fees and costs. Senator Respicio said he was trying to make sense of the cap saying from what he can determine the $499,999 cap was necessary to avoid the attorney general's office review of contracts. Javier however clarified the AG's Office was actually involved in the process.

Javier said, "Actually sir the contract, when we solicited this contract it was through legal oversight of then attorney assigned to us by the Attorney General's Office."

Senator Respicio and Vice Speaker B.J. Cruz would then express concerns about how the law firm was 8 months behind in billing the port and whether the agency would exceed the cap. Respicio mentioned how Javier during a November board meeting raised the issue that the port could exceed the cap by March 1st of this year. Javier told senators that the law firm has been paid $326,000 to cover expenses from 2011 up until June 2012 when it was last billed.   Baleto told senators that the board had instructed the legal counsel to provide the agency with current billings so that it can assess the true amount owed in legal fees.

"But the thing is I'm trying to figure out how you're continuing to run up attorneys fees not knowing whether or not you can pay for them," Cruz said. Respicio said, "So as the procurement manager don't you think it would be prudent to stop any legal services work until you can ascertain how much is owed by the port so you can see if your still within that cap." Javier, "We've made request for invoices."

Brown raised the issue of the timing of the senators concerns over the legal services contract. And whether there was as much scrutiny by this same committee over the previous port law firm of Lujan Aguigui Perez.

Brown said, "I also wanted to bring up senator because when this question was brought up with regards to legal services and the idea that perhaps that we're paying a large amount I actually had the records pulled with legal services contract most recently for the previous law firm which over a period of four years went over $2,274,573.63 of which one year in particular $700,000 in legal fees was paid by the port in legal fees, 73,995 in FY 10." Cruz said, "And as you so very eloquently put it I'm not trying to explain what happened in the last four years as of why it didn't." Brown said, "But no I'm also going to point out, I understand but I'm also pointing out inspite of the laughter in the room here I'm also pointing out while I understand your interest in the amount of money we want to be responsible but we also had the same committee oversight and these are exceeding high amounts I'd also be curious if the committee also went and reviewed these. I do want to point out that the amount of $326,000 was since the contract originated in 2011 up until June of last year. I also want to point out that previous legal firm in 2011 almost accumulated $326,000, for 2011. Respicio said, "Well the previous legal firm didn't go through a cap of $499,999." Brown said, "Well I would be curious as to why not because these are considerable charges." Respicio said, "No no no.. but.. Mr Chairman very quickly I'm not questioning the amount of legal services." Brown said, "Well I'm just curious why this particular juncture we're questioning the legal counsel in particular at this time , particularly at the most recent history of the port." Respicio said, "Because had a procurement manager who raised an issue with the board that says come March of this year she would have exceeded the $499,999 cap." Brown said, "You just want to ensure that we have continued legal services? Is that the point senator?"

Brown also pointed out that the  the port made a payment to the previous law firm in February 2012 even though their contract expired in 2011. We should also note one of the terminated employees, Bernadette Stern Meno now works for Senator Respicio, likewise another terminated employee Vivian Leon is second cousins to chairman Ada.

What wasn't on the agenda but was brought up during last night's information briefing was communication chairman Ada received from a port employee who was recently deployed. He was concerned because his wife who is his designated power of attorney will not be recognized at the port, evidently she is also one of the terminated port employees. Ada said, "And to simply say I'm not going to recognize you I don't care if you have power of attorney I think it flies in the face of what every official on the island has been saying to the guardsmen before they deploy that we will take care of families." Brown said, "Okay will you allow me to respond because that is not a statement that I  made and to begin with I have no problem with patriotism and supporting the guard senator my father was a 44 year Vietnam veteran m combat 24 years in the navy and the remaining years in the civil service so everything I have has been pretty much is through the support of the military so I'm not anti military in any way shape or form."

Brown said, "Unfortunately in this particular case we have hI'm designating a representative who was terminated by the port of which there are ongoing procedures involved with this particular individual so contact with this individual  including with the appropriate hr staff of the port is a concern."

Brown said the situation was unique and that the soldier was told he could designate anyone else he would like to deal with the port on his issues.