Ilao Says Any Suggestion of Wrong Doing by Him or His Firm, JMI, in Sole-Source Controversy Is “Grossly Wrong”

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Guam – JMI owner Ed Ilao has sent an email to Guam lawmakers calling any suggestion that either he or his company engaged in unethical business practices in connection with the Port’s attempt to procure a mobile container scanner “grossly wrong.”

Ilao has been off island since last week and unavailable for comment, says his Office.

No one has directly accused Ilao or JMI of wrong doing in the now cancelled procurement. 

However questions were raised at a Monday Port oversight hearing when GSA Procurement Chief Claudia Acfalle said that Port Grants Manager, Joe Javellana, initially approached her last November with the intention of sole sourcing the scanner contract to JMI at a time when Ilao was a Port Board member.

Javellana denied he ever intended to sole source the contract to JMI.

During the Monday night hearing, a video tape of a June 21st meeting was played, in part. The following exchange was recorded on that video tape.

GSA Procurement Chief Claudia Acfalle: “You came up to me first time around on this. And you wanted to sole source this to JMI because they’re the only ones that represent this company around here.  Do you recall?”

Port Grants Manager Joe Javellana: “Yes.”

GSA Procurement Chief Claudia Acfalle: “And I said no way. We’re talking about millions of dollars and I’m gonna sole source it? Can not.  You should know that we can’t. That’s why we’ve gotta be extra careful with this or we’re gonna end up in court.”

VIEW the report of the Monday night Port Oversight Hearing HERE

In response to that Monday night hearing, Ilao sent an an email to Senators Tuesday in which he wrote: “For anyone to allege, imply or insinuate that I or my company has participated in unethical or unlawful business practice is grossly wrong.”

Ilao’s email also states that:JMI-Edison denies any alleged inappropriate involvement in any discussion, verbal or written, directly or indirectly, in regards to the procurement of the container x-ray system at the Port Authority of Guam.”

And he called on the Senators toexercise due diligence and verify the accuracy and validity of these unsubstantiated accusations before lending any credence to them. To do otherwise would be irresponsible and a disservice to our community.”

READ Ilao’s email to Guam Senators below:

Dear Honorable Senators:

JMI-Edison is a locally owned and operated company with 35 years of service to the island and the region.

JMI-Edison has a proud history of doing business with the community we all call home and of doing business with the Government of Guam. Please note that approximately 98% of our past and current business with GovGuam have been won via IFB’s or bids opened in public.

For anyone to allege, imply or insinuate that I or my company has participated in unethical or unlawful business practice is grossly wrong. My family and our company’s more than 50 dedicated employees (my co-workers) have grown JMI-Edison through the years with much hard work, sweat and even tears.

JMI-Edison denies any alleged inappropriate involvement in any discussion, verbal or written, directly or indirectly, in regards to the procurement of the container x-ray system at the Port Authority of Guam.

Government procurement is a very complex subject, and it is by no means and will never be perfect. That is why it has provisions for protests and resolutions in different administrative and legal levels to satisfy the different parties in the case. Note that a baseless, unsubstantiated complaint or a trial by publicity is not a relief acceptable and provided by law.

As responsible public servants, I humbly ask that you exercise due diligence and verify the accuracy and validity of these unsubstantiated accusations before lending any credence to them. To do otherwise would be irresponsible and a disservice to our community.

Respectfully Yours,
Ed Ilao