Gov’t owes landowners $80 million

The government intends to address a huge backlog in unpaid settlement totaling to $80 million it owes landowners whose properties were acquired for right-of-way or easement projects, according to House Ways and Means Committee Chairman Karl T. Reyes.

He said these land acquisition dealings were done as far back as 1990 and ranged from a small lot area of 11 square meters to more than 7,000 sqm.

“They have not been fully paid or not paid yet by the government,” Reyes told reporters in an interview yesterday. “We just want to see how we can address this.”

Since payment for these obligations were not included in the fiscal budget of the government for the last two years, the Legislature and the administration will try to work out a scheme to reduce the debts.

Close to 200 individuals on Saipan alone have been awaiting payment and dozens more on Rota and Tinian have yet to receive full settlement, according to Reyes.

The government, in fact, has yet to pay the former owners of the lot where the CNMI Museum now currently sits. The Garapan institution covers a 7,360 sqm property.

Reyes is expected to meet with Mike Sablan, special advisor for finance and budget, on Friday to explore the possibility of tapping funds generated from lease of public lands.

He pointed out that the public debts have accumulated this much because most of the lands were bought early this decade when the island economy was still prosperous.

Most of these lands were used by the government to clear roadways, expand road shoulders and provide access to other areas.

During the previous administration, the Legislature appropriated about $2.5 million in 1997 to cover partial payment, but Reyes said “that’s very little.”

Although they may not be able to pay in full what they still owe these individuals, the legislator believed it will gradually resolve the issue as most landowners have been pressing the government to pay what is due them.

The representative suggested that CNMI can float again special bonds which proceeds can be set aside for this purpose. “At this time, we can address the repayment (of the bonds) through land leases instead of using (these funds) for homestead development,” he said.

Noting the ongoing efforts to utilize federal construction grants to improve power, sewer and water services in new homesteads in Kagman, the funds from the lease can be channeled instead to repaying landowners.

Under the law, the lease payment can only be appropriated for projects of the Division of Public Lands and its agencies and does not go directly to the local coffers.

“When we pump $15 million into Kagman (for utility projects), that’s going to help a lot of these homestead areas. We don’t need much money again from land leases to develop that,” said Reyes.

The interests from the trust fund under the Marianas Public Land Trust, which has kept the $33 million paid by the U.S. military for lands on Tinian and Tanapag, may also be put aside to repay the proposed bond flotation.

At present, it stands at more than $60 million, although $10 million of which were provided for the Koblerville Expansion Project, according to the Ways and Means chairman.