1 Sep 2016

Deadline looms for Guam funding

12:06 pm on 1 September 2016

Guam's education department could lose access to some US$50 million in federal funding if no company is hired to manage the US grants within two months.

The US Naval base at Orote Peninsula, Guam

Orote Peninsula in Guam which has a US Naval base. Photo: Supplied

The department said it is looking at a number of scenarios and is determining the steps that need to be taken to address them.

But its acting superintendent, Joe Sanchez, said the loss of the funds would affect school programmes such as special education and impact the salaries of more than 850 employees.

The Pacific Daily News reports that since 2010, the department has been required to pay outside experts to manage the grants because it has failed to manage and account for its spending in the past.

The current contractor, Alvarez & Marsal, lost out in the tender process to have its contract, which expires on the 31st of October, renewed. It has filed an appeal against the process.

This means there could be no contractor for the grants to be paid to for a time after the contract expires.

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