Public Lands remits $1M to MPLT

The Department of Public Lands has remitted $1 million to the Marianas Public Land Trust, representing the agency’s collection from all land lease payments for fiscal year 2011.

MPLT board consultant Bruce McMillan confirmed to Saipan Tribune yesterday the transfer of the amount last Nov. 23 which will primarily be used in investments.

According to DPL Secretary Oscar Babauta the remitted money was the agency’s reserve amount for the homestead development projects for the Northern Islands as mandated by Public Law 16-50. Because of the transmitted account, Babauta said this may hamper the agency’s initiatives in resolving homestead projects on Rota and Tinian.

Babauta said this was the first remittance made to the public land trust under his tenure at DPL. He said his predecessor, John DelRosario Jr., also transferred a total of $4.7 million to MPLT, covering three fiscal years.

During a recent MPLT board meeting, trustees expressed their frustration on the “unwillingness” of DPL to share financial information. Babauta said what hampered the efforts to provide the requested documents was the completion of financial reports for fiscal years 2003 through 2008 and a financial audit for FY 2008 and 2009.

“We cannot share any official records with MPLT because we’re currently in the process of working and finalizing compilation of financial records from 2003 to 2008 [or the closure of books] to get the accurate financial information. Absent those important reports, I will be misleading MPLT on the true financial status of DPL,” explained Babauta.

He said DPL is also routing the documentation for the independent audit firm which will perform the audit for FYs 2008 and 2009. He targets that by early next year, the audit report may be completed by the contracting firm.

During its last board meeting, MPLT chair Alvaro Santos said the agency’s plan is to take stronger measures against public lands if it continues to ignore requested documentations. Babauta appealed for more understanding from the chairman.

“I am here to work with them. It’s just that things are falling into places at the same time when they requested DPL to remit funds. I am also currently pursuing actively to finish those homestead projects on Tinian and Rota. I hope MPLT trusts in the ability of DPL to move forward,” he said yesterday.

Babauta informed MPLT the transfer of $1 million to its account in a letter, which is up for board’s discussion in this week’s meeting.

McMillan said yesterday that they were very glad about the remittance made by DPL and welcomed the secretary’s commitment to work with MPLT.

However, he said, without seeing any financial documents from the agency, MPLT cannot quantify how much was truly owed to the public land trust.

“We haven’t seen any numbers or financial reports so it’s really hard to tell how much is really owed to us,” added McMillan. According to the MPLT board, the uncollected lease payment from DPL was from fiscal year 2008 through 2011.