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In interest alone, gov’t owes MRC $2.1 million
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Posted on Feb 25 2009
In interest alone, the CNMI government is liable to pay businessman Anthony Pellegrino and his Marine Revitalization Corp. a total of $2.1 million.
Attorney Michael Dotts, counsel for Pellegrino and MRC, said the court’s $5.65 million judgment that was issued in 2005 has been earning a $540,000 a year in interest, bringing the government’s total obligation to over $7 million.
“You can think of it is like one government employee per month can’t be hired because of this judgment,” Dotts told Saipan Tribune yesterday.
“One school teacher per month is lost because the CNMI is going to spend on the interest because nobody is paying this judgment,” he added.
For the third time, the Superior Court has ordered the government to pay its $5.65 million debt plus interest to Pellegrino and MRC.
Associate Judge David A. Wiseman, in a decision issued Tuesday, warned that the court will not hesitate to address the Department of Lands and Natural Resources’ future noncompliance.
Asked for comment about Wiseman’s ruling, Dotts said they are very pleased because the case is costing the CNMI government too much, what with the interest.
“It is actually good for everybody that this is going to get paid. I think now that it is inevitable,” Dotts said.
The lawyer pointed out that Wiseman got it completely right that the government has to pay its debts.
“The government has to respect the court’s decision. So I think now it is inevitable, which is very good because it is costing everybody $45,000 a month,” Dotts said.
Pellegrino established MRC to build the Outer Cove Marina in the mid-90’s. The goal was to turn it over to the government. Arbitrators concluded that the marina project was a viable venture at that time because Saipan has limited mooring space at the Smiling Cove.
A dispute between MRC and the government arose in 2001 after the government not only failed to bar commercial vessels from renting slip space at Smiling Cove, but also actively solicited commercial lessees.
DLNR agreed in 2005 to a judgment of the court ordering it to pay more than $5 million to MRC or Pellegrino. DLNR, however, did not comply with the order that resulted to the court’s three judgments, including Tuesday’s.
