Senate members battle over EAGI panel report to reject Sixto

Senators battled for hours yesterday over a Senate Committee on Executive Appointments and Government Investigation report recommending rejection of Sixto K. Igisomar’s reappointment to the NMI Retirement Fund board, even as the Senate confirmed by an 8-0 vote the re-appointment of Elaine Orilla to the Northern Marianas College’s Board of Regents.

Igisomar personally asked senators during yesterday’s session to act “favorably” on his re-appointment so that he could assist the Fund in dealing with lots of pressing issues, including a threat of receivership if no amicable plan is presented to the court by June 15.

After a heated debate on the proposed rejection of Igisomar’s re-appointment, the Senate decided to defer action on the EAGI committee’s two-page report last night.

Senate floor leader Pete Reyes (R-Saipan) raised concern over what he described as a string of rejections of Carolinian appointees to different boards and commissions.

Igisomar is a Carolinian, and so were at least two other nominees whose re-appointments were rejected by the Senate. They were former Marianas Public Land Trust trustee Gregoria Fitial-Omar, the governor’s younger sister, and Viola Alepuyo, a former chair of the Commonwealth Public Utilities Commission.

Sen. Frank Cruz (R-Tinian) belied Reyes’ insinuation. Cruz, who engaged in a heated debate with Reyes, said the committee looked into performance of fiduciary duty and responsibilities, not race or ethnicity.

“We are not rejecting [him] because he’s Carolinian. It’s [based on] the facts my committee has gathered,” he said.

Of the five EAGI Committee members, only three signed the recommendation to reject Igisomar: chairman Cruz, vice chair Sen. Juan Ayuyu (Ind-Rota), and member Senate Vice President Jude Hofschneider (R-Tinian).

Reyes wrote the word “no” in capital letters instead of signing the report, while Sen. Jovita Taimanao (Ind-Rota) wasn’t able to sign it.

Taimanao asked Cruz for an more time for all senators to review the committee’s findings, while Ayuyu offered a motion to defer action on the report until further review.

Rep. Ray Tebuteb (R-Saipan) also asked senators to confirm Igisomar so that Carolinians could also be represented on the Fund board.

“Sixto is one individual I can trust to represent Carolinian people,” he said.

Only Sen. Henry San Nicolas (Cov-Tinian) was absent yesterday.

Findings and recommendations

Gov. Benigno R. Fitial re-appointed Igisomar to the Fund board on Jan. 30, but the Senate deferred acting on his nomination at least twice because the EAGI panel was either not ready with its report or because other senators asked for further review of the report itself.

Igisomar is the current secretary of the Department of Commerce.

The EAGI report said Igisomar is “overloaded with the two time-consuming positions, as it is understandably difficult to oversee a principle (sic) government agency and the assets of a depleting pension plan.”

Cruz’s committee also said that as chairman of the Fund board, Igisomar “failed to take action on the breach of contract of the Retirement Fund’s computer software system against the contractor.”

The EAGI panel was referring to businessman Gary Sword and his Express Electronics. The Fund only recently filed a lawsuit against Sword and Express Electronics for their alleged defective pension software that has already cost the Fund $406,060.

Cruz’s committee was also “disappointed” with Igisomar’s submission of documents detailing the exorbitant costs for legal fees associated with the Fund.

“The committee finds it very disturbing that Mr. Igisomar did not monitor such expensive legal fees, a prudent practice that a trustee must have during these economic times. Furthermore, a trustee’s fiduciary role should focus on the management of investment decisions, which should be made solely in the interest of the participants and beneficiaries,” the panel said.

The EAGI Committee therefore recommends that the full Senate “not confirm” Igisomar to serve a second term on the Fund board.

Reyes also questioned the timing of the proposed rejection of Igisomar’s re-appointment, considering that nobody previously questioned Igisomar’s capability to hold two positions for months and years.

Reyes said that Igisomar’s dedication to help the Fund is admirable. He said the Senate should not punish Igisomar for his ability to multi-task.

“It’s depressing and sinful. I’m ashamed as a member of the Senate that Carolinians are rejected. But I am more ashamed that a qualified Carolinian [is being rejected],” he said, adding that Igisomar has institutional knowledge that is beneficial to the Fund, retirees, and the CNMI.

During the session, Igisomar tried to respond to Cruz’s questions, but there were times when he was shot down.

Reyes later told reporters that Cruz is sticking to his “own facts” instead of listening to the facts directly from Igisomar.

In March, Reyes accused the panel of singling out nominees from Saipan when it comes to rejecting Fitial’s appointments and re-appointments. Prior to that, the Senate also rejected former MPLT chair Alvaro Santos’ re-appointment mainly because of a private land purchase.