‘One trip cost over $25K’

In one off-island trip that Gov. Ralph DLG Torres and first lady Diann Torres took in 2018, during which the first couple traveled on business or first-class, the government paid over $25,000.

This was learned from the testimony of Department of Finance’s finance and accounting director Bernadita C. Palacios, who appeared on Friday before the House Judiciary and Governmental Operations Committee that is reviewing the Torreses’ travels and expenditures.

Palacios testified with her counsel, Matthew Gregory. She said the Office of the Attorney General authorized the retention of counsel.

Rep. Christina E. Sablan (D-Saipan) showed Palacios a travel authorization for Torres and the first lady that occurred on or about Dec. 4 to 15, 2018 from Saipan to Washington D.C. and Hawaii, with stopovers in Japan, Chicago, San Francisco, and Guam.

Palacios said Lt. Gov. Arnold I. Palacios was the approving officer of that travel authorization and that it was Finance Secretary David DLG Atalig who certified the availability of funds.

Sablan noted that an initial travel authorization dated Nov. 27, 2018, stated that the Torreses were headed for Kona, Hawaii to attend the Western Governors Association meeting in 2018. Sablan noted that the initial airfare costs for both the governor and the first lady as listed on this travel authorization was $10,690 plus lodging and stipend. The travel authorization was then amended on March 8, 2019—three months later after the travel was completed—to change the routing and travel dates. Sablan said that, according to the amendment, the purpose of the travel was to attend memorial services for George Bush and meet with federal officials for Defense and Federal Emergency Management Agency in San Francisco and Hawaii, make opening remarks at a Westpac Conference and a meeting regarding the Pacific Century Fellowship Program.

Sablan said that, according to the amended TA of March 2019, it cost the government an additional $11,984 in airfare alone, plus stipend, lodging, and car rental.

“The total cost to taxpayers was more than $25,000 for that one trip alone by the governor and Mrs. Torres. Is that correct, Mrs. Palacios?” Sablan asked the witness.

Palacios said it was Atalig who certified the funds, but it was probably to entertain the governor’s travel voucher that he amended his trip for a longer period.

Sablan said it appears from the amendment that it was to change the dates and to change even the routing altogether. “But the question was, this was additional airfare, correct? So altogether that one trip would have cost more than $25,000,” Sablan said.

Palacios said it was indeed the amount of that trip. She said after Ralph DLG Torres filed the vouchers and attached all the itinerary and everything, it cost the government additional funds.

Palacios said that, based on the boarding passes and the airfare for the trip, the government paid for business and first class for the Western Governors Association meeting.

Palacios said she did not see any trip report submitted by the first couple.

Sablan said it means that people really don’t know if they actually attended the meeting. Palacios agreed.

Palacios also explained the procedures when travel authorization are to be amended.

Palacios said all the governor’s travel request and all amendments to travel authorization are just automatically approved. She said Finance has never denied any travel authorization for not only for the governor but also for other government employees.

“The only denial is if you don’t have the funds,” the director pointed out. “We don’t lie if there’s no money.”

Rep. Edwin K. Propst (D-Saipan) said the airfare restriction states that the Commonwealth government shall not purchase or furnish for or reimburse any employee, contractor, board member, or other persons required to travel on behalf of the government, departments, divisions, agencies and autonomous agencies, an airline ticket for travel in first class, business class, or any other premium-class designation.

Propst said travel agencies issuing tickets for government travel shall only be paid for at the regular economy fare or its equivalent, and that any government employee who causes an airline ticket to be issued in violation of this rule shall pay a civil fine of $1,000.

Propst asked Palacios whether individuals going off island as part of work are required to submit trip reports. Palacios said that, based on the regulations, it is a requirement to submit trip report, but that some travelers do not do it.

Propst pointed out that everyone is required to submit a trip report within 15 days and if they don’t, their travel advances are withheld until these reports are submitted. Palacios said that they have never enforced that portion of the rules. Palacios said if a traveler does not file a trip report, they give 30 days in order for the traveler to submit the travel voucher. She said if the traveler still does not file, they do an automatic payroll deduction for the money that the traveler owes the government.

Palacios said the governor is not exempted from the law or regulations not to provide a trip report after he completes travel for government purposes.

In the case of the first lady, she is not a government employee. “I have never seen the first lady submit a trip report. I don’t remember seeing one travel report of the first lady,” she said.

Palacios said Finance has not ever withheld travel advances or otherwise imposed a penalty on the governor for failing to provide a trip report after completing his of- island travel.

Propst said from the over 100 travel authorizations they have reviewed, he believes there were perhaps less than five actual trip reports. “I’m just wondering if that was something that you may have observed that the governor was failing to provide trip reports for all these travels,” the lawmaker said.

Palacios said it’s not only the governor, but a lot of travelers are not filing trip reports.

With respect to the prohibition on first class travel for government employees, Palacios said it was around 2019 when then-Office of the Public Auditor investigator Travis Hurst brought that issue to her attention. She said after that, she has not signed off for first class travel.

Palacios said it would be then-Finance Secretary Larrisa Larson and current Finance Secretary David Atalig who would sign off on first class travel.

Palacios said sometimes Larson would sign on her (Palacios) behalf the certification on the availability of funds for travel.

The director said if it’s a last-minute travel such as less than five days’ notice, they usually send the travel authorization to the Finance secretary for signature.

Palacios said if the first lady travels, it is the department head that is ultimately responsible for the purpose section of the travel authorization.

Palacios said there is no reason why she would not sign the travel authorization of Diann Torres because in the first place, it was never given to her.

The director said right now the new travel policy is they have to give the traveler 100% travel advances.

“But if you have an outstanding, we only give you 80%. So when you file your voucher now we hold the remaining balance of your voucher,” she said.

When

When Saipan Tribune left the House chamber at 4:45pm, Palacios was still testifying.