The battle to realign Guam Visitors Bureau’s governance structure so that multimillions in annual public funds no longer are controlled by intertwined conflicts of interest that skirt procurement laws has spilled over to the Guam Legislature.
And now, Sen. Telo Taitague is calling out tourism committee chairwoman Sen. Amanda Shelton for her apparent conflict of interest that has stalled the reform effort, according to Ms. Taitague.
Ms. Shelton’s uncle is at the center of an investigative report by GVB legal counsel over the alleged misuse of millions of dollars in public tourist attraction funds to the benefit of a small group of tourism industry executives.
Ms. Taitague introduced legislation – Bill No. 38-37 – that would, according to her office, “require the Guam Visitors Bureau Board of Directors to provide financial disclosure statements and would prohibit cumulative voting for GVB members – which inherently gives those with more financial resources an unfair advantage when electing board leadership.”
Every public board and commission member is required by law to submit disclosures of their finance, except for the hybrid members of the GVB board. The disclosures are required, in part, to reveal whether policy-making officials have conflicts of interest when voting on matters, especially how money is spent, or who is awarded what contract.
Ms. Shelton held a public hearing on the bill Thursday, but only after Ms. Taitague forced the issue by executing a provision in the legislature’s standing rules that allow senators to hold their own public hearings if the committee to which their legislation was referred fails to hold a public hearing within 120 days of introduction.
Ms. Shelton failed to hold the public hearing on Bill No. 38-37 within the 120 days, so Ms. Taitague acted. At the eleventh hour, Ms. Shelton scheduled a last-minute hearing, which coincided with GVB CEO Carl Gutierrez’s off island trip to promote Guam in Japan.
Mr. Gutierrez has been adamant about reforming the GVB board’s governance structure, and has been most vocal in alleging Ms. Shelton’s uncle and others were involved in a corrupt scheme at the agency. He and others also have criticized Ms. Shelton for failing to hold any oversight hearing, though the legal counsel’s report of investigation makes allegations of criminal conduct against several named people.
In a news release following the hearing, Ms. Shelton criticized Mr. Gutierrez for not being present at the hearing she called on a date Mr. Gutierrez was scheduled to be off island. Her office, in a news release, claimed to be surprised when Mr. Gutierrez’s deputy, GVB vice president Gerald Perez, “unveiled a lengthy letter proposing changes in GVB’s operating structure,” the news release stated. “It was drafted by management’s legal counsel in February.”
“I am heartened that GVB’s management is apparently, and finally, laying its cards upon the table. It is crucial that the people of Guam know exactly what powers and responsibilities GM Gutierrez believes should be consolidated under his authority today and the authority of his successors in the future,” Ms. Shelton said, according to the news release from her office.
“Furthermore, this work product of the GVB legal counsel was produced on the taxpayer and bureau membership’s dime. It deserves consideration, as do the ideas of other stakeholders.
“And as I stated in Wednesday’s hearing, there will be more stakeholder roundtables in the weeks ahead. The goal is very straightforward: position GVB for optimal success in the years ahead. I believe this is best done by bringing as many people together so that all voices and viewpoints are heard.”
“The Tourism Committee chairperson must not have been paying attention to her main industry because the solutions to the problems with the Guam Visitors Bureau Board of Directors are not new – it’s why I have introduced the same bill since the 35th Guam Legislature. It has been supported every time by GVB management and employees,” Ms. Taitague retorted, in a news release which followed Shelton’s.
Ms. Taitague also called out Ms. Shelton for her apparent conflict of interest, and hinted at ethical violations:
“It should be noted that Tourism Committee Chairwoman Sen. Amanda Shelton has not recused herself from voting, or from taking the lead on official legislative GVB business matters, despite the ongoing investigation of a close relative with ties to the tourism industry,” the Taitague news release states.
“As executive officials, elected officials, and board and commission members, we take an oath to serve the people of Guam,” Ms. Taitague stated in the news release. “This requires ethical action and a commitment to transparency.”
The GVB legal counsel report of investigation was referred to the Office of the Attorney General of Guam. Attorney General Douglas Moylan has previously said his office is looking into the matter.
