Heinz’s contract as board consultant temporarily halted

The contract between the NMI Retirement Fund and former House speaker Heinz Hofschneider was temporary halted after the board chairman’s term expired Thursday last week.

Sixto K. Igisomar disclosed this to Saipan Tribune yesterday, saying the process will continue once he is confirmed once more to the position.

Igisomar’s term as a Fund board member expired last week. Although Gov. Benigno R. Fitial re-appointed him to the post, he has yet to be confirmed by the Senate, along with board vice chair Adelina Roberto.

The board, which currently has three members, has been unable to meet since Friday due to the lack of quorum. The Fund board usually has seven members; it requires four members present to constitute a quorum.

The board decided in January to hire Hofschneider as a consultant to the tune of $70,000 a year. The contract’s execution has been delayed as both parties have been ironing out the contract’s “deliverables”-the results and products expected of Hofschneider. Igisomar negotiated the contract and its deliverables at the behest of the board.

Saipan Tribune learned that the contract signing was further delayed in February as both Hofschneider and Igisomar had to attend to some personal matters.

Yesterday, Igisomar said the contract processing will continue as expected upon his return to the board, though he could not immediately say when. He foresees no other reason to stop Hofschneider’s contract, saying the former lawmaker is still willing to serve the Fund.

“[Hofschneider] is still very much willing to sign and serve as board consultant to help the Fund. As you know the process was stopped just because my term expired, but as soon as I get onboard we will continue the negotiation,” said Igisomar.

Fitial earlier came out in support of the hiring of Hofschneider to help the troubled pension agency. Despite early opposition by Commonwealth Retirees Association director Diego Benavente, the organization has taken no formal position on the issue, according to CRA chair Larry Cabrera.

Igisomar said that there was no pressure from any faction or sector on getting Hofschneider aboard, even from the Executive Branch. He declined to further comment on the issue because his term officially ended as a trustee last week.

In an earlier interview, Igisomar described Hofschneider as an asset to the Fund. He was selected at a time when the repealer bill for the controversial Beneficiaries’ Derivative Act was signed into law, suspending procurement regulations for 90 days. Hofschneider was selected a through sole-source contract.

Igisomar said that with the current situation of the pension program, the board has to find the best ways to salvage the situation.

The pension plan is projected to be depleted in less than three years if no new money comes in.