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Gov. Lou Leon Guerrero is asking the Supreme Court of Guam to find that Attorney General Douglas Moylan does not have the power to block contracts for power, water and sewer installations at the Mangilao hospital project site. A petition filed Thursday morning argues that Guam laws requiring the AG to review procurements worth over $500,000, and to sign off on contracts, don’t apply to local utility agencies. Moylan has publicly vowed not to sign utility contracts for what he’s called an illegal hospital project. Some $104 million in federal funds set aside for utility installations at the Mangilao hospital site are mired in a federal court battle, with the administration arguing the project has followed the law. “This case is about protecting our island’s ability to move forward with critical infrastructure projects, including our new hospital without political obstruction,” the governor said in a Thursday statement. She said the AG is trying to “run out the clock” on federal funds that expire on Dec. 31, 2026. Leon Guerrero said she can’t let the AG’s obstruction “deny our people the hospital they deserve.” Moylan called the legal action an “act of desperation,” attempting to interfere with the federal court’s jurisdiction. He said the $104 million would be spent on “infrastructure to nowhere,” with no funds available for the projected $1 billion hospital and associated medical campus. “Disappointing that this (governor) continues threatening our financial stability and the immediate healthcare needs of us all,” Moylan said. Federal lawsuit Moylan is suing in the District Court to block federal American Rescue Plan money the governor earmarked for utilities at the Mangilao hospital site. The AG argues that the Guam Housing and Urban Renewal Authority violated the Open Government Act when it accepted $12 million in ARP to acquire hospital lands last year, and when it moved to condemn private land for the project. GHURA and Adelup have denied the allegations, and are moving to have the federal lawsuit thrown out. Meanwhile, GPA has sued to remove the AG from reviewing contracts for power, water and sewer installations at the hospital, pointing to his public vows not to sign off on contracts for the project. GPA has $35 million to install power at the Mangilao site, while GWA has $62 million for water and sewer. Another $5.5 million is set aside for surveys of the property and engineering work. ‘Grave public concern’ Attorneys for the governor ask for the Supreme Court of Guam to rule that Moylan can’t “veto” contracts from GPA and GWA. They ask the court to expedite the case. Ongoing court cases don’t address the “threshold” question of whether or not Moylan is allowed under Guam law to prevent power, water and sewer contracts from moving, the governor’s attorneys argue. The matter is of “grave public concern” given the Dec. 31, 2026 deadline to spend the funds. Funds will be forfeited in 14 months, and deprive the public of “critical infrastructure and health benefits,” according to the filings. “Such a loss would delay the development of a long-overdue medical facility,” while undermining utility projects, the filings state. Filings argue that the AG’s review and approval are limited to contracts for agencies in the executive branch, or requiring the governor’s signature, which do not apply to GPA or GWA. The governor’s lawyers argue that letting the matter go through the regular judicial process, subject to appeals, could result in delays of months if not years. Two questions are posed to the court: Under Guam law, must autonomous agencies like GPA and GWA, already outside of GovGuam’s central accounting system, get AG approval before executing contracts?Does Guam law give the AG independent contract approval authority? 5 more years The governor at Wednesday’s groundbreaking ceremony for a parking expansion at Guam Memorial Hospital said GMH must last five more years. She said the Army Corps of Engineers told her in 2019 that the facility had about five years left. Efforts by utilities oversight chair Sen. Jesse Lujan to broker a compromise between the governor, AG and lawmakers have not been successful. Both Lujan and the AG have asked for a letter from the U.S. Department of Treasury approving the use of federal ARP funds for a new hospital. Leon Guerrero has asked lawmakers to pass her Bill 2, to let utility contracts bypass the AG’s review. Speaker Frank Blas Jr. has said he does not believe the Legislature should get involved in the ongoing legal dispute, and asked Adelup to provide more justification documents from the Treasury. The governor has called the document requests “delay tactics,” arguing the hospital project follows federal funding guidelines, and that the Treasury does not approve individual project requests.
