The presence of Leonard Calvo general manager of Calvo Development at the negotiating table alongside ICTSI and the Port Authority of Guam showed the intent of EC Development a Calvo Enterprises company to invest in ICTSI.
Confirmation of that intent "" and of Calvo willingness to act as terminal operator "" caused negotiations between the port and ICTSI to cease on the advice of the office of the attorney general of Guam.
The Journal has received information that ICTSI wrote to Joe Mesa general manager of the port on Feb. 16 advising that EC Development would be its minority partner.
The letter said "We also advise you that a local Guam company EC Development LLP has expressed interest and willingness to be a minority investor in GICTI. We believe that the help of a local investor such as EC Development LLP would be a plus to our effort to improve and expand the development operations and management of the Jose D. Leon Guerrero Commercial Port."
The letter further went on "In this connection we wish to introduce Mr. Edward C. Calvo of Calvo and Clark LLP who will represent the interests of ICTSI and is authorized to speak on our behalf before the Port Authority of Guam."
Edwardo Q. Abesamis executive president of ICTSI signed the letter which was sent to Mesa.
Journal sources said that Calvo’s was intending to purchase 1 997 shares of 2 000 shares of a company registered with the Department of Revenue & Taxation on Guam by ICTSI "" Guam International Container Terminal Inc.
Calvo confirmed to the Journal that he had been present at negotiations and that Calvo’s had a relationship with ICTSI. "Yes. We’re working with them." Calvo said his company was the only entity involved with ICTSI.
On April 11 the port wrote to Abesamis "formally notifying "¦ its decision to cease negotiation with your company."
The reasons for calling off the deal were those that Mesa said had already been advised to ICTSI on the advice of its attorney "" the office of the attorney general. The port’s attorney had advised the port that "ICTSI’s proposal must stand or fall as submitted since otherwise the playing field will have changed in violation of Guam procurement law." In a letter dated Feb. 17 and at meetings on March 28 and 29 ICTSI was advised by its counsel that "discussions will continue with ICTSI and not any other entity."
The Evaluation and Selection Committee of port officials had reviewed ICTSI communications concerning the negotiations. The group was comprised of two board members including Richard H. Northey executive vice president and credit administrator of Citizens Security Bank and chairman of the board of the port; one other board member; two senior managers at the port and a third senior manager who sat in as an alternate.
The port further advised ICTSI in Mesa’s April 11 letter that "The port made it clear it would not entertain a priced offer that would jeopardize the port’s ability to successfully finance a replacement gantry crane."
After reviewing ICTSI’s latest response the letter said "We have determined that the proposal not only failed to meet that concern but actually was even more detrimental to the port’s financial concerns. We have concluded that it would be more beneficial to the territory of Guam for the port to continue to operate the container terminal tan to accept the offer of ICTSI."
Michael P. Henderson marketing communications administrator of the port told the Journal "We did give the financial portion of the proposal to an independent accounting firm."
The governor was unaware that the April 11 letter had been sent by the port to ICTSI until April 12.
Calvo said the Calvo company did not ask for Northey’s termination.
The governor appointed Monte Mesa general manager of Guam Premier Outlets to the position on April 11. Chapter 43 Article I Subsection 43 103 of 5 Guam Code Annotated prevents a member of a board from holding two positions.
Mesa plans to step down as chairman of GVB’s Japan Marketing Committee in order to fill the position at the port. Mesa will spearhead the board’s efforts to outsource the management and terminal operations of the port as well as the acquisition of a new gantry crane to stabilize operations. He told the Journal "This is a win-win situation for the greater good of the port. Everybody wins if we move in a positive direction that would benefit the largest portion of the community."
Calvo said he was confident that ICTSI would still be able to negotiate with the port. "Hopefully negotiations get back on track "" the port is important for Guam." Calvo said he did not think that recent developments would seriously affect negotiations. "No. I think so."
Abesamis was due to arrive at his office the afternoon of April 12 from an overseas trip to Jakarta. The Journal spoke with Manuel De Jesus director of business development for ICTSI on April 12. He said "I have not seen the letter from the port. It is a holiday here in the Philippines "" Holy Week "" so a lot of businesses are closed."
As for Calvo involvement in the company De Jesus said "The Calvos may be thinking about the future if ICTSI does get the contract and opens a subsidiary on Guam." However Calvo said "We’ve been involved in it from the get-go." He said "It’s their common practice to bring in a local partner wherever they go." When asked why the Calvo company did not reveal its involvement from the start Calvo replied "We didn’t want this to get political."
De Jesus said he was not aware of the letter from Abesamis to Mesa dated Feb. 16. He said the letter was "an expression of interest in an act that has yet to happen and is contingent upon whether or not ICTSI gets the contract."
The Journal asked what De Jesus thought of Northey’s release. He said "ICTSI has no preference as to who the chairman is."
Shawn Gumataotao the governor’s spokesman told the Journal via email "At a meeting several weeks ago with Mr. Northey the governor expressed his dissatisfaction with the progress being made at the port to stabilize and improve port operations. At that time the chairman offered to step down if the governor was unhappy with what was happening and the governor simply took him up on his offer."MBJ
