![\"\"](\"https:\/\/www.saipantribune.com\/wp-content\/uploads\/2022\/12\/Will-Castro-mug-1.jpg\")
<\/a>Attao said the original source was $11 million, then Atalig requested $6 million, then there is an additional request of $20 million that shall be reserved for the BOOST Program. \u201cSo that\u2019s a total of $37 million for the BOOST Program,\u201d Attao said.<\/p>\n
Castro said the additional request for funding is news for him if, in fact, that was the \u201cexecutive will\u201d to infuse an additional $20 million. \u201cI am not privy to that. But my reaction will be that\u2019s a great thing,\u201d he said, adding that, regardless of who the sitting governor is, the program would be a tremendous benefit to the community.<\/p>\n
Attao said he wants to state for the record that there\u2019s a spending plan, but there\u2019s also a moving of an additional $27 million that has not been approved by the U.S. Department of Treasury.<\/p>\n
As to who decided how much funding to allocate to the program, Castro said he would suspect that Atalig is the authorized signatory for and on behalf of Gov. Ralph DLG Torres.<\/p>\n
\u201cSo I would have to assume, although I stand to be corrected, that it would be the [Finance] secretary, upon the advice and consent of the governor,\u201d he said.,<\/p>\n
On the funding source, Castro read a Sept. 23, 2022, letter by Atalig which states that the source of funding is the American Rescue Plan Act Coronavirus State and Local Fiscal Recovery Funds, otherwise known as the ARPA or CSLFRF.<\/p>\n
Castro said he is a member of a review panel and that his job is to review the BOOST applications and to confer with his colleagues, who also sit on the review panel, in order that they are in a sound position to make a recommendation on a list of applicants for review and approval by the governor.<\/p>\n
Castro said the BOOST Program was initially conceived as a low- to no-interest bearing program that would be administered through one or more banking institutions in the Commonwealth.<\/p>\n
Upon further review and due diligence by Atalig, Castro said they received feedback from the U.S. Department of Treasury that under no circumstances shall these funds be used to subsidize a loan or any kind.<\/p>\n
\u201cThat was the genesis of engaging one or more banks. Then we figured that it would make great sense as a matter of quality control, to have an extended party outside of the Office of the Governor primarily to be a part of the process for the purpose of vetting and ensuring that the applications or the applicants in this regard are in compliance for the basic requirements as outlined in the BOOST Program,\u201d Castro said.<\/p>\n
He disclosed that there is currently an initiative underway known as the BOOST Workforce Development Program, in which this week they are training the first dozen 50 applicants who may be employed through these BOOST funds. He said this is to provide further assistance to small businesses or non-profits, using the same source of funding. Castro said the budget is under half a million dollars at this point.<\/p>\n
He said there is another element that is still being conceptualized\u2014the BOOST Small Business Center. He said the concept is that these beneficiaries of the BOOST Program and others who may benefit from this Small Business Center venue and the services and product provided therein may avail themselves of it.<\/p>\n
\u201cThe concept is there would a central conference room, state-of-the-art facility,\u201d he said.<\/p>\n
Castro said he does know when the $6 million was added to the program and that Atalig would be the best source for any questions relative to these fiscal matters associated with BOOST.<\/p>\n
Castro agreed with Rep. Edwin K. Propst (D-Saipan) that there are 241 businesses that were awarded, for a total sum of about $10.4 million. He said the program was extended for others to apply on two occasions.<\/p>\n
The chief of staff said there are 4,000 applicants for the entire BOOST Program.<\/p>\n
Propst said 241 businesses got about $11 million and if there are still $5 million left, there are 3,000 or so applicants.<\/p>\n
\u201cIf you look simply at the numbers, how much is actually left for these business applicants? Why was it extended if the amounts were already way over what could possibly be ever invested in these businesses?\u201d Propst asked.<\/p>\n
Castro said he doesn\u2019t have enough information about the fiscal state of affairs associated with either the government or the program.<\/p>\n
Castro explained how an application can be submitted to BOS, and the respective roles of the bank as administrator, the reviewing panel, and Torres, who has the final approval authority of the application.<\/p>\n
He clarified that BOOST money is a grant and not a loan.<\/p>\n
As to how BOS get the contract to administer the program, Castro said the bank has the infrastructure, the necessary expertise, infrastructure of accountants, and other professionals that are in the best position to conduct due diligence. He said this is to ensure that there is a third party that will make sure that the basic requirements are met.<\/p>\n
Castro said he did not have the authority to select the BOS as the administrator, but Atalig has.<\/p>\n
He said he does not know if there was a request for proposal to contract the administrator.<\/p>\n
To the question if he as a personal relationship with BOS president John Arroyo, Castro said Arroyo is his friend, but he has in no way a personal relationship with him either through filial relationship or through business relationship. \u201cHe is my friend, absolutely. But absolutely no business or filial relationship,\u201d he said.<\/p>\n
Castro said he does not recall making any recommendation to award the contract to BOS, which according to him, has done an outstanding job. He said he does not know the owners of BOS.<\/p>\n
Rep. Corina L. Magofna (D-Saipan) then showed a text message between Castro and BOS employee and BOOST administrator Karen Kalen dated Nov. 18, 2022, where Castro reportedly said he does not forget his friends. When asked what he meant by this, Castro explained that if someone left a favorable impression upon him and his family, and treated them with due respect, he will, unless otherwise abrogated, forever hold that person in the highest regard and esteem.<\/p>\n
Castro disagreed that the text message gives an appearance of favoritism.<\/p>\n
\u201cSo the inference there would be, \u2018please, please to the best of your ability, ensure that we are in compliance with whatever is required [by] federal [and] local statutes, in the intent and the spirit of the program.\u2019 That\u2019s what it means,\u201d he said.<\/p>\n
In that communication, Kalen thanked Castro for including BOS in the BOOST Program. Castro replied that he does not forget his friends and that Arroyo has been good to him in the past.<\/p>\n
JGO chair Rep. Celina R. Babauta (D-Saipan) said that text records obtained from BOS reflect that many of Castro\u2019s friends and family and associates or associates from businesses in Guam were awarded funds under the CNMI Boost Program. Babauta asked Castro if he made a profit in any way.<\/p>\n
Castro denied making a profit and asked Babauta which members of his family has benefitted from the BOOST award. \u201cI would challenge the assumption based on the written record that no members of my family has been awarded a BOOST award. I don\u2019t think any member of my family even applied,\u201d he said.<\/p>\n
Castro said that, for his own protection\u2014legal and otherwise\u2014could somebody tell him which member of his family had applied for a BOOST grant. Babauta asked if Castro considers in-laws to be family, but Castro clarified that he is not married.<\/p>\n
As for the members of the reviewing panel, Castro said the other members are Atalig and Commerce Secretary Edward Deleon Guerrero.<\/p>\n
He said Deleon Guerrero, on occasion, does assign Commerce Business Development director Jesus Taisague to serve as his proxy when he is unable to do.<\/p>\n
Castro said that, to the best of his knowledge, at no point has Torres asserted himself to remove or add or amend the recommended amounts on the list of names on the ledger.<\/p>\n
In response to Rep. Celina Babauta\u2019s question, Castro denied the Shane Villanueva, Perry Inos Jr., Nadine Deleon Guerrero and others have ever sat on the review panel.<\/p>\n
As to Rep. Celina Babauta\u2019s question about how BOS, as the administrator of the program, was able to receive a $250,000 grant, Castro said all applications that come through for review are discussed by the panel.<\/p>\n
Castro said he does not recall at any time that it was stated that BOS grosses more than $10 million a year or has 250 employees or more, which prevents the bank from applying for the program.<\/p>\n
\u201cI don\u2019t believe that BOS has 250 employees, but I could be wrong, but that\u2019s my judgment based on my observation,\u201d he said.<\/p>\n
Propst noted that based on the exchange of communications between Castro and Arroyo, Castro previously characterized as rumor that Shane Villanueva received BOOST money. Propst said they, however, found out from documents that there are three companies that applied for grants under Roil Soil Clothing, Roil Soil Market, and Roil Soil Wholesale, which applied for $280,200, $239,200, and $184,300.<\/p>\n
\u201cWell, it turns out that, yeah, not Shane Villanueva but Roil Soil. Who does not know that Roil Soil is Shane Villanueva? Very few people and it\u2019s only the president of Bank of Saipan that had no idea,\u201d Propst said.<\/p>\n
Castro said he has validated this information with Arroyo and BOS staff and found out that on that date, there was no record written or otherwise of application from Roil Soil Clothing, Roil Soil Marketing, or Roil Soil Wholesale, that had been received.<\/p>\n
Nonetheless, Propt said, Roil Soil did apply and that Castro killed the rumor.<\/p>\n
Castro said he does not know if the applications of Roil Soils get approved at this point.<\/p>\n
He said Villanueva\u2019s marketing firm is responsible for one or more programs within the BOOST umbrella.<\/p>\n","protected":false},"excerpt":{"rendered":"
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