The Guam Office of Public Accountability has released the first in a series of audits looking into how the Port Authority settled and reinstated nine former employees. All nine are back with the agency after their cases were resolved with the Civil Service Commission.

The first audit report, released today, focused on an employee identified only as "Employee Q". According to the findings as a result of this particular employee's termination lawsuit the Port paid in total $542,275 in back wages, medicare tax, retirement contribution, attorney's fees and legal cost and interest.

"We also found that there were some things that the Port did, that we thought we should point out to the Port and to the Government, the Guam legislature, in the hopes of attending to it. One is that they found that the performance evaluations for 2012 and 2011, were not signed by the General Manager, and under the Port rules and regulations, the personnel evaluation doesn't go into effect until it's certified by the General Manager," said public auditor B.J. Cruz.

But according to the audit report the uncertified performance evaluations or increments were included in the backpay calculations.

"The incumbent Port Management decided that it was going to give the maximum increment per year. We thought that it should be, that there should be a standard and that though the employee had had an outstanding evaluation for the three prior years, two of them had not been certified by a General manager," he added.

According to the audit, the OPA found significant deficiencies in the Port's calculations which resulted in overpayments of at least $95,000 in back wages and $18,000 in interest, for a total of $114,000 in overpayments. Among the findings, the OPA noted that legal remedies to settle this employee's case were executed without seeking the Board's approval, and a 6% interest charge was paid to the employee without any court order requirement, negotiated terms, and proper calculation.

Cruz said, "Rather than doing the 6 percent, we thought that what the port management should have done was negotiated an interest because the law says maximum 6 percent the port should've negotiated an interest lower than what was given, the 6 percent."

According to the report, the Port General Manager disagreed with a majority of the audit findings and recommendations. And late this afternoon the Port requested the AG's office conduct a review of the OPA audit to provide legal guidance on whether any post actions will be required. Port GM, Rory Respicio stating "Our management position remains firm in that we acted in accordance with the law, the PAG's Personnel rules and Regulations , and with the PAG Board's Authority, as well as Civil Service Commission, Superior Court or Supreme Court orders, whenever such orders are applicable to any of these personnel cases." Respicio added that " Moreover, our management team acted under the advice and guidance by the Port's in-house counsel in the development of the settlement templates. We, therefore, maintain our disagreement with the OPA's findings."