BoS, NMIRF let court decide on deposits

Despite a court order directing negotiations for a possible settlement, the Bank of Saipan and the Northern Mariana Islands Retirement Fund again failed to reach an agreement over some $5.6 million that the Fund has with the bank.

Both the bank and the Fund submitted to the Superior Court on June 30 their respective proposals about the agency’s access to the monies, according to Michael Dotts, one of the lawyers for BoS chairman Paul Calvo.

“The court will now choose between the versions of either party,” Dotts said, adding, however, that the court exercises discretion whether to incorporate components of both versions into one settlement accord.

Dotts refused to disclose details contained in the bank’s proposal, saying it was filed under seal.

The bank, however, earlier struck a deal with its biggest government depositor—the Marianas Public Lands Authority—which allowed limited funds withdrawal by the agency beginning June. The MPLA has some $9 million deposited with the bank.

Earlier reports said Associate Judge Juan T. Lizama had directed the Fund to retain the bulk of its deposits in the bank and reach an agreement with BoS until June 29. Lizama reportedly imposed the June 30 deadline for the bank and the Fund to submit their respective proposals if an agreement could not be reached until June 29.

The bank had viewed Lizama’s ruling as a victory for the bank, saying that BoS would eventually be able to revive loan services. The CNMI’s banking director had reportedly conditioned its approval of the loan services revival on a settlement between the bank and the Fund over the latter’s funds.

“There are some [people] with the Retirement Fund who are determined to see the bank fail,” Dotts said of the failed negotiations.

He specifically pinpointed Fund board member Oscar Camacho, who failed to become the bank’s receiver in lieu of then temporary receiver Randall Fennell. In court proceedings, Dotts said Camacho testified that liquidation—not rehabilitation—was proper for the bank.

Camacho could not be reached for comment as of press time. A staff at the Commonwealth Development Authority, where Camacho is loan manager, said the latter was unavailable for interview yesterday.

The Fund earlier expressed its desire to withdraw the entire amount of its deposits from BoS.