‘Mafnas’ expertise is needed at the Department of Commerce’

David Atalig

Finance Secretary David Atalig claims that the decision to reassign Division of Customs director Jose Mafnas to the Department of Commerce was not politically or maliciously motivated; instead, it’s because he believes that the Department of Commerce needs his expertise.

In his memorandum in support of the motion opposing Mafnas’ motion for a temporary restraining order and preliminary injunction, Atalig explained that Mafnas, who has served the CNMI as Customs director since 2013, has extensive expertise in enforcing the Division of Custom’s rules and regulations, CNMI laws, and federal laws as they apply to the import and export of taxable goods to and from the CNMI.

“[I] and the Department of Commerce secretary began discussing the establishment of a new division of the Department of Commerce on April 7, 2022. The purpose of the new division would be to create a collaborative effort between the Department of Finance and the Department of Commerce to assist with import of goods at a lower cost and the export of local goods to create an economic development for the CNMI,” Atalig said.

“Mafnas was the best candidate to assist the Department of Commerce in setting up the rules and regulations to govern the new division, based on plaintiffs’ productive and competent leadership, his value as a member of the DOF management team, and his outstanding performance and demonstrated success in core areas of relentless enforcement and historically high collections of taxes in the CNMI. Based on this experience and record of performance, it was determined that plaintiff’s expertise is needed in the Department of Commerce, and [I] decided to temporarily transfer plaintiff to assist the Department of Commerce to create a new federally funded division under the Economic Development Division,” Atalig added.

In addition, Atalig said Mafnas’ reassignment is not “illegal” as he argues because, as Customs director, Mafnas is subject to the personnel service system rules and regulations.

“Plaintiff, as the Customs director, is a civil service government employee. In April 2022, [I] requested the director of Administrative Services, Margaret “Bertha” Torres, to determine the process for transferring an employee from one agency to another. Torres advised that transfers and reassignments are allowed under the PSSR&R, and that they are quite common,” said Atalig.

Lastly, Atalig argues he was not given any directive or orders from anyone to transfer Mafnas.

“A memorandum of assignment was sent out to plaintiff explaining the basis for the decision and had Lalita Lynn B. Duenas deliver the memorandum around 2pm on July 21, 2022. Duenas returned to Atalig after delivering the notice and conveyed plaintiffs’ threat to sue. Atalig immediately went into a scheduled meeting, and plainitff attempted to call him on his cell phone. Atalig responded to plainitff at 2:36pm that he would return his call when Atalig was done in his meeting. Atalig was advised after 3pm that plaintiff had called for a press conference. Atalig did not return plaintiff’s call after that time,” Atalig’s memorandum staes.

According to court documents, Mafnas filed his lawsuit against the Department of Finance, its secretary, and Torres’ chief of staff with the U.S. District Court for the NMI last July 28.

Aside from the lawsuit, Mafnas also filed a motion for a TRO and preliminary injunction to essentially prohibit Atalig or Castro from reassigning him pending judgment.

On Aug. 2, 2022, the court granted Mafnas’ motion for TRO effective through Aug. 16.