SBDC CONTROVERSY Teno calls on CDA, NMC to iron kinks

Taking his hands off a brewing controversy dragging his name into the picture, Gov. Pedro P. Tenorio urged the Northern Marianas College and the Commonwealth Development Authority to iron out their differences to ensure that federal funding for the Small Business Development Center stays.

He disclosed that he has yet to receive a letter signed by both CDA Board Chair Juan S. Tenorio and Jack Peters, former director of NMC-SBDC, detailing the planned removal of the center under the wings of the college.

“I did not receive any letter or suggestions that [it’s] going to be transferred [to CDA],” said the governor in an interview Friday. “Nothing has been submitted to my office about the transfer of the [SBDC].”

Mr. Tenorio, however, revealed meeting with NMC President Agnes M. McPhetres and Vice President Jack Sablan to discuss some of the issues, but said there was no commitment and that “there has been nothing provided to my office for any transfer or which department is going to be responsible for the center.”

The chief executive has been dragged into the controversy following his meeting Oct. 29 with Mr. Peters and Mr. Tenorio as well as Ken Lujan, Guam branch manager of the U.S. Small Business Administration, at his office during the turnover of $330,000 loan granted by SBA to CDA.

While he denied conducting secret meeting with those officials immediately after the brief ceremony covered by the local media, the governor said the issue on “how they can operate [the center] more effectively” was brought up by the party.

“I had no knowledge if there was any intention to remove [the center] from the college and to be placed on other department,” he explained. “I was not even aware what was the issue to be discussed at that time.”

But Mr. Tenorio said he instructed them to meet with NMC officials to try to reach an agreement. “I was not aware until these things come up. I was not even advised that there were some proposed changes to be made during their visit to my office,” he added.

In a letter to Mr. Tenorio dated Nov. 17, both the CDA chairman and Mr. Peters, who now heads the Pacific Islands Small Business Development Center Network based at the University of Guam, outlined the transfer of the local SBDC.

They indicated that they were submitting these recommendations as requested by the governor during the Oct. 29 meeting, who, according to the CDA chief, had expressed concern that the CNMI may lose federal funds without making commitment as to which institution should handle the program.

The center, which opened in 1989 at the college, receives as much as $200,000 a year — funding at risk of being defaulted if corrective measures are not immediately put in place in the wake of recent findings that NMC has reportedly mismanaged them.

According to sources privy to the deal, it will only take the governor’s signature to complete the transfer. But Mr. Tenorio called on both parties to settle their differences.

“All they have to do is to get together and try to come up with best solution because it’s very important that they resolve those issues,” said the governor.

He also vowed to implement, if necessary, corrective measures “before we lose the funds.”

Under fire

NMC officials and some lawmakers have lashed out at Mr. Peters for allegedly pressuring the government to close down the current center and fire all its employees, which they claimed is “highly suspicious” just months after leaving the college.

Mr. Peters, who moved to Guam last April to assume his new post, has come under attack for allegedly waging a “personal vendetta” against NMC after failing to forge a $10,000 contract involving a project he used to administer as NMC-SBDC director. He has denied the charges.

Rep. Oscar M. Babauta, who rejected Mr. Peters’ offer as he had the authority of approving contracts for the recent OIA-funded CNMI economic conference, has vowed to have the controversy probed by the U.S. Inspector General.

Downplaying the investigation, the governor asked the college and the Board of Regents to draw up a list of recommendations on SBDC.

“I leave (the probe) up to the Legislature. That’s their prerogative but I think the Board of Regents and the college should come up with their strong recommendations on what needs to be done. Based on that, we could appropriately see that it would be done,” said Mr. Tenorio.

SBDC has been in the forefront of economic activities since its inception in 1989. The BDC network encompasses the Business Incubator, the Graduate Internship Program, the Business Assistance Services Program and the Education & Training Program.