Atalig, 2 contractors appear before House committee probing BOOST

Former Department of Finance secretary David DLG Atalig and two contractors of the previous administration’s Building Optimism, Opportunity, and Stability Together grant program appeared yesterday before a House of Representatives committee that is investigating how the grant program was run.

Atalig appeared with his lawyer, Bruce Berline. Contractors Robert Travilla and Shayne Villanueva appeared with lawyers, Joseph Horrey and Keith Chambers, respectively. The three were not required to testify yesterday.

The hearing before the Special Committee on Federal Assistance & Disaster-related Funding will continue today, Wednesday, at 2pm, with the start of Travilla’s testimony.

Travilla and Villanueva, along with contractor Salina Sapp, were in charge of marketing the BOOST Program. The program used $17 million in American Rescue Plan Act funds that some former and current House members alleged were given to many of the previous administration’s cronies.

Atalig, Travilla, and Villanueva were compelled to appear and testify before the committee via subpoenas issued by the special committee, which is chaired by Rep. Ralph N. Yumul (Ind-Saipan).

Yumul told Atalig he would not be testifying that day, Tuesday, and asked him to return to testify on March 12, 13, and 14, 2024. Atalig said he has to double-check his calendar, but the dates seem to be fine at the moment. Berline, on the other hand, said he just heard the new dates so he is unsure as yet.

Atalig said he believes that he is supposed to be on a medical trip for his wife toward the end of March 2024. “But I’ll just have to confirm that,” he added.

Berline asked the committee to give them a day or two to check their calendar, then he can reach out to the House legal counsel if that is acceptable. The committee did not object.

With respect to Travilla, Yumul tentatively set the hearing schedule for 2pm today, Wednesday, for Travilla to start his testimony. Yumul said they, however, will wait for Horrey’s advice to the House counsel later that day, Tuesday, if the schedule is fine. Horrey said they believe that those dates are fine, but they need to double-check and will let the House counsel know before the end of today. The committee did not object.

Horrey is also counsel for Sapp, who is scheduled to testify on Feb. 27, 28, and 29, 2024.

Villanueva, on the other hand, was told yesterday to testify on March 5, 6, and 7, 2024 at 10am.

House Speaker Edmund S. Villagomez (Ind-Saipan) created the special committee on May 2, 2023, and it has been doing its due diligence on the BOOST program in the past few months.

Yumul said the committee has already reviewed testimonies from William Castro, former Department of Commerce Economic Development director Jesus Taisague, former Department of Commerce secretary Edward M. DeLeon Guerrero, and Bank of Saipan from their appearances before the 22nd Legislature.

“So we’re here today to listen to the last witnesses who are involved the program which we have scheduled throughout the next couple of weeks,” Yumul said.

He said the committee has met several times to formally issue subpoenas for documents and for witness testimonies, with the intention of gathering information that will help the members of Legislature draft legislation that will allow the Legislative Branch to work collaboratively with the Executive Branch to ensure that all federal funds and federal disaster-related funds are spent wisely and in conformance with all applicable laws.

Yumul said they have passed several bills in the House that relate to health funds such as ARPA funding and BOOST.

He cited two examples of House bills that the House passed, along with other House legislations, that according to him, all aim to try to ensure that all federal and disaster-related funds are spent in a manner that benefits the entire Commonwealth and not just a few privileged people who are politically connected.

“We will build upon what we have already learned about how the BOOST program was run and administered and turn our attention in the next few weeks to the marketing of the program and the expenses that were incurred,” he said.

Yumul said the special committee hopes to gain from Atalig more insight and understanding as to how BOOST program was administered and how expenses were approved and paid out.

He underscored the importance of getting such information so that they can improve upon the process in which CNMI can manage federal funds in a legal and “fiscally conservative” manner.