Babauta denies claim that DPL failed to remit millions to MPLT

Department of Public Lands Secretary Oscar M. Babauta countered yesterday allegations that the agency violated the Constitution by failing to remit millions of dollars to the Marianas Public Land Trust.

Babauta was earlier urged by the MPLT trustees to make the necessary remittance to the trust for its investment growth. Numerous letters were sent, all claiming either the questionable calculation of the remittance made by DPL or the lack of financial information provided to the MPLT by the department. DPL was also accused of violating the mandates of the law regarding the yearly remittance to the trust.

In a March 22 letter to MPLT board chair Pedro Deleon Guerrero, the DPL chief asked for more time and denied the implication that the department violated the law.

“The Department of Public Lands has carefully reviewed your letter sent Feb. 24, 2012, containing your allegations that DPL has violated the Constitution of the NMI by failing to remit all funds properly owed to MPLT. DPL has at all times fully complied with its constitutional duties with respect to MPLT and remitted all funds properly owed to MPLT. Further, DPL categorically denies your assertions that it is in possession of several million dollars that should be remitted to MPLT,” Babauta told Deleon Guerrero in the letter.

In an interview with Saipan Tribune yesterday, Babauta admitted that since he took over, he has no concrete knowledge of how DPL truly stands financially. This is the why the public lands agency commissioned an independent auditor to compile the agency’s records for a comprehensive financial audit that will cover previous fiscal years, he said.

Babauta said that DPL understands the current pressures on MPLT, which has on its table numerous loan applications from both private and public entities. However, he appealed for MPLT’s consideration, specifically on the records it is asking from the agency.

“DPL is currently concluding its audit with Deloitte & Touche for the past fiscal year. Additionally, DPL is closing audits from the years 2003 through 2010. After these independent accountings are complete, DPL will be better able to furnish you information regarding its finances,” Babauta told Deleon Guerrero.

According to Babauta, it is only through cooperation that DPL and MPLT can fulfill their constitutional obligations to use public lands for the benefits of persons of NMI descent. “In these trying economic times we must stand united as public lands, and revenues derived there from, are placed under continuing strain,” said Babauta.

MPLT earlier disclosed that DPL’s last remittance to the trust was in November 2011 amounting to $1 million. Last fiscal year, it was $2 million.

Babauta said that DPL is preparing to remit more funds to MPLT within the year, pending the closing of the agency’s books and audits.

Under the law, any remittances to MPLT are made after deducting the department’s expenditures for homestead programs, operations, and other related costs.