AG: Stop land payment drawdowns

The Attorney General’s Office has instructed the Department of Finance to stop processing all land compensation drawdowns amid concerns over the Marianas Public Lands Authority’s handling of recent land compensation payments.

In a letter to Finance Secretary Atalig, acting attorney general Clyde Lemons said that the AGO was reviewing drawdowns that MPLA had sent to the Finance Department.

At least two drawdown requests were pending at the Finance Department as of May 9, 2005, which was the date of Lemons’ letter. Several other drawdowns are expected to be sent to Finance in the immediate future, Lemons said.

“This office is currently reviewing several drawdowns that you have been sent through your office for your approval. Additionally, we are contemplating taking action against MPLA with respect to such drawdowns. As such, I ask that you do not process any land compensation payments until further notice,” Lemons said.

In an interview yesterday, AGO-Civil Division chief James Livingstone admitted that Lemons’ instruction would result in “a temporary slowing down of the [land compensation disbursement] process.”

But he stressed the importance of immediately resolving the confusion caused by the enactment of Public Law 14-29, a land compensation law passed in September 2004 that changed the method for valuation of land.

The law’s precursor, P.L. 13-25, ensured that individuals with land compensation claims received the actual value of the land at the time of the taking.

However, the new law defined the “time of taking” as the date when the governor or other authorized government official certifies in writing the need for the acquisition of the private land.

Many such certifications, however, were made at a time when high market values were prevailing. This caused the amount of recent land compensation payments to shoot up. Two examples were the controversial payments to the Malite estate, amounting to $3.45 million, and the Rita Kaipat estate, $4.41 million.

According to Livingstone, the AGO wants MPLA to participate in posing a certified question to the Supreme Court, so that the issues would be clarified once and for all.

“The AGO and MPLA and the administration are all concerned that the land compensation money be distributed quickly and fairly. A certified question is a way to fairly establish ground rules that treat everyone fairly,” Livingstone said.

The MPLA board of directors will hold a special meeting tomorrow, May 18, to discuss AGO’s proposal.

The AGO had earlier filed a lawsuit against the Malite estate and the MPLA and its officers to prevent the release of $3.45 million in land compensation, questioning the propriety of the MPLA board’s approval of the amount’s release. The case remains pending at the Supreme Court.