Previous Story
‘Placing Fund under receivership would not solve its problems’
|
Posted on Jul 03 2011
Superior Court associate judge Kenneth L. Govendo has stated that he does not share the view that placing the NMI Retirement Fund under federal receivership would solve the Fund’s problems.
At a status hearing last week, Govendo said there are some who believe that federal receivership for the Fund will be the “magic bullet” to solve the whole problem.
Govendo said he could not see that happening.
“It still comes down to the lack of money,” the judge pointed out.
Govendo inquired the status of the receivership request filed by attorney Bruce Jorgensen on behalf of unnamed plaintiffs, who sued the Fund and Gov. Benigno R. Fitial over alleged non-payment of their retirement benefits.
Viola Alepuyo, counsel for Fund, replied that Judge A. Wallace Tashima recused himself from hearing a request for a status conference and motion to lift stay order on the lawsuit.
Alepuyo said the new hearing date before another judge would be July 24, 2011.
Govendo said he is well aware that the government is in a dire financial situation and funds are just not available.
Govendo wished he could solve the problem as he knew that a lot of retirees think he should be able to produce a “magic bullet’ and solve everything.
The judge said he is issuing the orders and some people think he should also do the collecting for the Fund, “which is certainly not the case.”
In June 2009, Govendo ruled that the CNMI government owes the Fund $231.6 million in damages and that the law suspending government contributions to the Fund is unconstitutional. As of February 2011, the government’s debt has reportedly grown to $317 million.
