AGO targets govt debtors

The Attorney General’s Office is poised to go after government debtors in the hope of recouping millions of dollars for the Commonwealth.

Acting Attorney General Matthew T. Gregory said yesterday that the collection of money owed the government is on the AGO’s top agenda.

“The current priorities of the administration are dealing with the financial situation of the Commonwealth. Obviously, it’s difficult to provide public service without enough funding. Our primary goal is to look at past collection issues concerning unpaid debts to the government and violations of the law that resulted in loss of money to the Commonwealth. We will pursue those vigorously,” Gregory told the Saipan Tribune.

Specifically, the AGO is set to file lawsuits over bounced checks, over-the-cap salaries, and debts owed the Division of Revenue and Taxation.

The AGO will also pursue individuals who have failed to pay for medical care received from the Commonwealth Health Center, and for service provided by the Commonwealth Utilities Corp.

In addition, the AGO will pursue legal action against agencies found by the Office of the Public Auditor to have misused public funds.

Assistant attorney general James Stump, who is in charge of the collection efforts, has completed assessing the debts and classifying them according to priority, Gregory said.

“The government is owed millions of dollars. We will try to recoup that money,” he said.

According to a 2005 OPA report, the CNMI government may recover misused public funds amounting up to $6.4 million if the AGO succeeds in pursuing legal action and if other agencies comply with OPA audit recommendations issued as of June 2005.

OPA said that AGO action is needed for the recovery of approximately $2.7 million improperly expended by various government agencies. This includes amounts recoverable from 11 audit reports referred to the AGO for legal action. The oldest of these reports dated from as far back as 1995.

About $1.13 million is recoverable from the Tinian Casino Gaming Control Commission for overpayment of a consultant, breach of fiduciary trust by three commission officials, and outstanding travel transactions.

Another $1.3 million is made up of overpayments of professional services contracts by the CNMI government.

The remaining amount is recoverable from the departments of Public Works, Finance, and Public Health, Commonwealth Utilities Corporation, Marianas Public Lands Authority, and Commonwealth Ports Authority. The cases involve improper payments to contractors or board members, travel and per diem overpayments, non-collection of rentals or lease payments, or funds misuse by agency officials.