Gov’t spent less on office rental expenses

The Department of Finance on Friday reported that the CNMI government managed to reduce by close to 16 percent its office rental expenses in Fiscal 1999 from the 1997 level.

In 1997, government leases of private sector office space totaled $2.3 million which was down by $400,000, or 15.5 percent, to $1.9 million last year, a DOF report showed.

Only the Department of Community and Cultural Affairs reported an increase but officials attribute this to the need for “safe houses” for battered and abused individuals and related family issue programs.

Finance officials ascribe the reduction to the relocation of more government offices to the Capitol Hill housing area. At least 30 government agencies now occupy 30 of the 105 housing units in Capitol Hill.

Only 46 of the Capitol Hill houses are occupied by government employees who are mostly doctors and health workers, as well as those working from the Attorney General’s Office.

The DOF report said 29 houses are either vacant or undergoing renovation. More government offices are expected to be relocated to these units as part of the administration’s efforts to further reduce office rental expenses.

Officials said there are no existing government facilities that may house large government agencies including the Departments of Labor and Immigration and Finance.

The government’s major private sector office space rental agreements are with the Aftena Building and the Joeten Dandan Commercial Building housing DOLI, Customs and Revenue and Tax divisions, and the Office of the Finance Secretary.

Major leases, including the Joeten Dandan and Aftena lease agreements, were signed during the administration of former Gov. Froilan C. Tenorio and former Lt. Gov. Jesus Borja.

DOF earlier reported similar reduction in the government’s travel expenses with the Legislature emerging as biggest spender in overseas trips in FY 1999.

Excluding medical referral, necessary for public health, total government travel was reduced by 46 percent from $3.9 million in 1997 to $2.1 million last year.

Belt-tightening measures implemented by the Tenorio Administration also managed to bear fruits despite the Legislature’s apparent disregard for austerity program, with the finance department reporting a major drop in government spending on vehicle use during the last fiscal year.

A report from the Department of Finance disclosed that the government slashed expenses on leased vehicle by $600,000, from $2 million in FY 1998 to $1.4 million in FY 1999.

The figure represents a 28 percent reduction in government spending on leased vehicles. The commonwealth government leased only 148 vehicles in FY 1999, from 211 units during the previous fiscal year.