The commerce secretary in the Northern Marianas is under investigation over allegations of harrassment, bullying, racial discrimination and abuse of authority.
An enforcement officer, Mariano Salas, has alleged the incidents occurred at a Tinian community festival last month.
The Saipan Tribune reports the claims say Mark Rabauliman demanded that Mr Salas and other staff use their per diem to buy cases of beer, that he used expletives, and allegedly made racist remarks about Mr Salas, who is Chamorro.
The governor's office said that it was aware and an incident report had been filed with the Office of Personnel Management.
Mr Rabauliman is a member of governor Ralph Torres' cabinet.
A spokesman said the administration would allow the lawful process to do its work and then make a determination on whether further action was warranted.