Labor chief says he can’t comment on PUA fraud case, Adelup evading question on governor’s instructions on investigation

The FBI since 2021 has been investigating people at the top of the Leon Guerrero – Tenorio administration for alleged fraud related to the federal Pandemic Unemployment Assistance program. The program was administered by the Guam Department of Labor. The director of labor, David Dell’Isola, said he is unable to comment on the investigation, or even to confirm that one exists. And the governor’s director of communications, Krystal Paco-San Agustin, is refusing to say whether Governor Lou Leon Guerrero has ordered her cabinet and staff to cooperate with the federal investigation.

But according to multiple sources, Mr. Dell’Isola has been interviewed by the FBI. And the federal grand jury on the matter already is underway, with subpoenas to several parties in both the public and private sectors for documents and testimony related to the alleged crimes.

“GDOL is unable to comment on any investigation that may or may not be occurring,” Mr. Dell’Isola told Kandit.

We pushed the matter through mobile text with the labor director, asking him:

“But wouldn’t a federal inquiry into the alleged abuse of federal funds be a matter of public interest? Why can’t GDOL comment? Have you been instructed by the FBI or the [U.S. Attorney] not to comment?”

“Also, my sources tell me you have been interviewed by the FBI in relation to the lieutenant governor and people surrounding him. What can you tell us about that interview?”

“Are you at least able to confirm for us that you are NOT the subject of a federal investigation into PUA fraud?”

He read, but did not reply to the follow up questions.

Asked “What is the extent of the governor and lieutenant governor’s knowledge of the federal PUA investigation,” Ms. Paco-San Agustin answered with a caveat:

“No agencies have received a federal grand jury subpoena to the best of my knowledge.”

Kandit pushed, telling the governor’s chief spokesperson of our knowledge of public agencies being subpoenaed for records related to the PUA fraud case. She again replied with a caveat:

“Again, I am not aware of any subpoenas,” she said. “Grand jury proceedings are typically confidential so even if there were a grand jury proceeding, I wouldn’t be privy to that information.”

Ms. Paco-San Agustin did confirm that no one at the governor’s office had been interviewed by either the FBI or the U.S. Attorney about the case, and neither was the governor’s office subpoenaed for records. Asked whether anyone at the governor’s office was requested for interview by the Feds, she replied, “Not that I’m aware of.”

Asked, “Is the governor aware of the investigation and has she directed agency directors to cooperate,” she did not reply.

Multiple sources have confirmed that government employees who led and staffed the former PUA office under Mr. Dell’Isola’s labor department have been questioned by the FBI, with at least one high level official believed to be cooperating with the investigation into higher officials.

According to GDOL reports, the PUA office administered more than half a billion dollars in federal pandemic unemployment aid to residents.

The alleged fraud occurred in the lead up to the 2022 gubernatorial election which resulted in the nomination of Lou Leon Guerrero and Joshua Tenorio over Michael San Nicolas and Sabrina Salas Matanane, and then to the Democrat ticket’s reelection against Republicans Felix Camacho and Tony Ada.

Mr. San Nicolas, Ms. Salas Matanane, Mr. Camacho, and Mr. Ada’s campaigns had accused the governor and lieutenant governor of corruption.

Mr. Tenorio is one of two announced candidates for governor in 2026. The other is Republican Charlie Hermosa, who was the first to publicly release information about the federal PUA fraud case.