NMI lost $4M in food stamp money

The CNMI apparently lost $4.5 million in food stamp funds when the U.S. Department of Agriculture de-obligated the money in July 2011 because the Department of Community and Cultural Affairs failed to use it.

The surplus food stamp funds cover the period from fiscal years 2006 to 2010.

DCCA’s failure to use the funds was revealed in two emails by DCCA Secretary Melvin Faisao to USDA regional administrator Allen Ng, a copy of which was furnished to Saipan Tribune by Delegate Gregorio Kilili C. Sablan (Ind-MP).

In a Feb. 2, 2012, email, Faisao asked Ng about USDA’s non-response to DCCA’s request to not de-obligate the NAP monies.

In an earlier email, dated Dec. 27, 2011, Faisao told Ng that USDA’s move to de-obligate $4.5 million in NAP funding to the CNMI contradicts existing statutes that say the Commonwealth “could keep the funds until expended.”

Faisao added in his email to Ng that the “CNMI has no final deadline for expending federal grant funds. Requests for time extensions are not necessary. There are no restrictions for one-year obligation (on the grantee’s part-DCCA NAP) and two-year liquidation periods do not apply (precedence of law) and CNMI can continue to expend the USDA dollars for program purposes at the rate they choose. With that said DCCA seeks that the $4.5 million be obligated back to CNMI for the DCCA-NAP identified obligations.”

Incensed

Sablan, in a phone interview last night, said he is upset that the Fitial administration is allowing food stamp money to revert back to the federal government at a time when so many residents are in dire need of assistance.

“People are being put on waitlist for the [NAP] program, benefits are being reduced, and here I am trying to get more help for families so they can put food on the tables for their children. And the CNMI government is not using the money. $4.5 million has been de-obligated by the USDA because the CNMI government hasn’t been spending the money over several years starting from 2006 to 2010,” he said.

The two-term congressman pointed out that people are having a hard time. “I know of people who come here and they have to choose between paying their CUC bills or buy food for their families. And some people are choosing to buy food for their families and there are people of the waitlist. I’m angry and people who are doing this should be ashamed of themselves,” he said.

He said he is now trying to work with USDA to have this money returned. However, he believes that the money should go to beneficiaries right away.

Sablan also reiterated his call for the Fitial administration to agree with him and enroll the CNMI into the full SNAP program.

“It will have increased benefits, cover more people, we won’t have a waiting list, it will provide food for people at this difficult time, plus it’s good for business. They are telling people to go on waitlist, they have to reduce benefits because they have no money, but they are returning this money?” he said.

Sablan added that unlike Medicare, where the CNMI has to match funds expended by the federal government, the food stamp program does not have the same requirement.

“No matches here, it’s 100 percent federal so they can’t use the issue of matching funds. They should be ashamed of themselves. People are on wait list, people are getting reduced benefits because they have no money and now we find out that we’re returning money? They should be ashamed of themselves,” he said.

Sablan promised to protect the government employee who leaked the email. “I will not identify person who gave me this email exchange, afraid that the government will ran after this person.”

USDA has been giving the CNMI $12 million for the Nutrition Assistance Program since 2009; the amount was increased last year. NAP is funded through a block grant and has been implemented in the CNMI since 1982.

Saipan Tribune emailed Faisao as well as acting press secretary Teresa Kim yesterday to respond. Both have yet to respond to emails.