Public auditor clarifies why he dismissed an appeal that led to the contractors licensing board head's resignation

Questions on confidence, allegations of fraud, and the resignation of one of the CLB's top board members. Public Auditor BJ Cruz gave his comments on his decision of dismissing an appeal that was filed. Tyler Matanane has the story


Public Auditor BJ Cruz is looking forward to JMI Edison taking his decision to court. The Office of the Public Auditor threw out the company's appeal involving procurement at the airport. It was supposed to be an issue as to whether the competing company had a required contractor's license but instead turned into something much bigger that ultimately led to the executive director of the Contractor's Licensing Board submitting his resignation.

"I'm glad they're going to take it to the Superior Court," Cruz said.

That's Cruz's reaction to JMI Edison's announcement that it will appeal to the Superior Court to intervene in a decision by the OPA to dismiss with prejudice its appeal in an airport RFP to baggage services. The contract was awarded to off-island company, Menzies. JMI protested the selection arguing the company didn't have a license from the Contract icense board. Backing up the company was CLB Executive Director Cecil Orsini who sent over a findings and fact document to the OPA. That document came into question after documents were produced by Menzies showing an email between JMI and Orsini. JMI's Ed Ilao asking a "bro" to help him out prior to the hearing. But that wasn't the only reason why Cruz dismissed the case. He also cited another instance in which Orsini may have helped another company involved in a separate case before the OPA.

 

 

"This was the 20th of December, the 23rd of December I get almost an identical document filed in this case and I was fuming," Cruz said. "I thought, oh wow what is this they look alike. I said alright that's good at least now I have an issue."

The document was produced by a CLB investigator who also testified in the separate case that in order for a findings and fact document to be issued, by law it must be approved by a quorum of the board, none of which was done in either cases, according to Cruz.

"But then when I get the problem that there isn't a quorum of the board, there board hasn't met since last September, they're filing the director is filing documents purporting to be findings of the board in two cases," he said. "It's very hard to believe anything as I said in my decision. It just makes it difficult to accept anything from the CLB."

It's led the OPA to determine that in the JMI case it was a bro just helping out another bro.

"I guess I was getting too cute in my decision, but it just bothered me that you could reach out to someone like that and have something signed," Cruz said. 

As we reported JMI defended its use of the word 'bro" as just a island way of speaking in open communications adding that the OPA did not give them an opportunity to defend themselves. Today, it was announced that Department of Public Works Deputy Director Linda Ibanez was appointed as acting executive director of the CLB. 

In a press release issued this afternoon, JMI Edison continues to maintain that the Public Auditor failed to follow due process. The company claims that they requested a hearing on the allegations raised against it, but that Public Auditor BJ Cruz refused to provide them with a meaningful opportunity to be heard.


The company argues that "instead, our elected public auditor rendered his judgment based upon his false perception of impropriety, and not based on the facts and evidence. He rendered a decision invalidating the actions of another agency that had nothing to do with procurement or audits. Process matters, and the result of his choice is allowing an unlicensed billion-dollar off-island company to profit from Guam's taxpayers and airport customers."

The release further claims that contrary to Cruz's statements about the law requiring a quorum in order to issue a findings and decision is in fact false. JMI affirms that they will appeal to the Superior Court.