Military Agency “Determining the Appropriate Actions” Regarding Employee Indicted for Corruption


Adelup is refusing to answer whether the three classified government employees indicted last week for corruption will face administrative investigations and adverse action now that the U.S. Attorney has accused them of a slew of federal crimes. The agency head of one of the indicted employees, however, has confirmed it is determining what action to take in light of the criminal allegations.

Governor Lou Leon Guerrero smiles alongside Adjutant General Michael Cruz and Lt. Colonel Manny Duenas of the Guam Army National Guard following the announcement of her Truman Award selection in this July 25, 2023 photo courtesy of the governor’s office.

Brigadier General Michael W. Cruz, the adjutant general of the Guam National Guard and head of the Department of Military Affairs, confirmed to Kandit that his agency command “is determining the appropriate actions necessary to alleviate any adverse impact to the organization.” Guam’s former lieutenant governor added, “That being said, I cannot elaborate further as the matter involves private personnel actions which are not appropriate for public dissemination.”

The DMA employs Kathleen Peredo as its quartermaster, a position dealing with the financial and human resources affairs of the agency. Ms. Peredo was one of seven people indicted by a federal grand jury in a case alleging the seven defrauded the Pandemic Unemployment Assistance program to enrich themselves and others. Ms. Peredo at the time of the alleged conspiracy was the PUA Program Office manager.

General Cruz’s confirmation of his agency’s review of the matter differs from Adelup’s response to whether the agency heads of the departments where the three classified employees work will order administrative investigations and possibly adverse action.

“[G]iven the recency of these allegations, it is premature to discuss adverse actions at this point,” governor’s communications director Krystal Paco-San Agustin told Kandit Friday afternoon. The following afternoon, she wrote, “We don’t comment on personnel matters.”

The two other classified employees who were indicted are Marlene Pinaula, who works at the A.B. Won Pat Guam International Airport Authority, and Frankie Rosalin, who works at the Jose D. Leon Guerrero Port Authority of Guam. Kandit emailed officials at all three agencies to ask whether administrative investigations would be ordered following the unsealing of the federal indictments. Only General Cruz replied.

In the government of Guam classified system, agencies abide by what is referred to as a 90-day rule in the administration of the progressive discipline policy outlined in personnel rules and regulations. The 90-day rule essentially caps the time an agency head can issue certain notices leading to adverse action to within 90 days of when management knew or should have known about an employee’s commission of an infraction against the rules. Breaking the law is an infraction that could lead to dismissal of the employee from the government.

While the alleged crimes occurred between 2020 and 2021, government agencies theoretically would not have known nor would have been expected to know until the federal government unsealed its Wednesday indictments that explained the charges of violation of federal law. The unsealing of those charges occurred Friday, which might mean that the agency heads of the three employees charged with the crimes began to know about the allegations last Friday. That would mean that if these agencies heads wanted to hold the three employees accountable for allegedly violating personnel rules and regulations, some type of action would need to be taken within 90 days of last Friday.

The Civil Service Commission, the body that arbitrates and decides a classified employee’s challenge and appeal to a government manager’s adverse action, often has reinstated employees and ordered they be paid back wages if government management violates the 90-day rule.

The government of Guam has a recent example of using allegations the federal government makes in the U.S. District Court of Guam as grounds and justification to terminate the employment of one of its employees. Shortly after the federal government unsealed a criminal case against former Guam police officer Brian Awa, Guam Police Department chief of police Stephen Ignacio terminated Mr. Awa’s employment even though he had not gone to trial nor was found guilty of any crime.


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