Judge gives garment board new extension for check distribution

The federal court yesterday granted the Garment Oversight Board’s request for a final extension of its term in order for the board to account for the last $1.6 million in checks that were distributed or about to be sent to former and current garment workers.

The board also cited some additional issues that are pending such as taxes.

The board’s term has been extended many times; its current term will expire on July 31, 2008. Yesterday, Chief Judge Alex R. Munson extended the board’s term to Oct. 31, 2008. He said the board’s request for an extension appears reasonable.

Board chair Timothy H. Bellas said 11,353 checks were already processed and the remaining 1,031 checks will be sent to the workers by July 26, 2008.

The settlement class members (eligible workers) continue to visit the board’s office in Puerto Rico, Saipan to inform the GOB that they are still here and would like their checks handed to them on the island.

In some cases, workers would come in after the checks have already been mailed to their off-island addresses, which are on file with the board, said Bellas in GOB’s motion for final extension of term.

“Allowing for a 60-day period from the date the remaining 1,031 checks are mailed, in order for them to be cashed and or returned to the GOB or its account, will mean that the GOB will be unable to render its final accounting of the distribution of the [residual settlement funds] until Sept. 29, 2008,” Bellas said.

Finally, he said, there are some pending issues such as taxes previously paid to both the CNMI and the U.S. governments for withholding taxes of eligible workers who have never received their checks.

Bellas said both lawyers for the plaintiffs in the lawsuit and the GOB are still pursuing the issue with the appropriate government bodies.

The GOB chairman said the board can use the remaining funds as operating expenses for completing the distribution and the extension period.

He said the board recently received its latest statement from the Bank of Hawaii and, after withdrawing the $2 million for the planned distribution, the residual balance went up from $47,745.09 to $86,242.13.

“There may be a slight shortage in the final months which shall be paid from funds realized from returned or non-negotiated distribution checks,” Bellas said.

GOB was set up pursuant to the $20-million settlement agreement in the class action to oversee the monitoring program of the garment industry.