Legislative probe on Tinian directors’ compensation OK’d

Senators reached a consensus yesterday to conduct an investigation into the alleged irregularity involving the payment of unused annual leave of two “terminated” Tinian resident directors, Norbert Hofschneider and Ernie Hofschneider.

The Senate preferred investigating the matter—as pushed by Tinian senator Joseph Mendiola, chair of the Senate Fiscal Affairs Committee—rather than filing a lawsuit against the Attorney General’s Office, as recommended by Sen. Pete P. Reyes.

The Attorney General’s Office reportedly advised Gov. Juan N. Babauta to instruct the Department of Finance to pay the two Tinian officials.

The AGO, at the same time, has issued an opinion stating that the termination of the Hofschneiders was illegal.

Invoking his authority, Tinian Mayor Francisco M. Borja did not renew the employment contracts of the directors effective February this year.

In his request to Sen. Paterno Hocog, chair of the Executive Appointment and Government Investigation Committee, and Rep. Jesus Lizama, chair of the Judiciary and Government Operations Committee, Mendiola cited that the AGO instructed the Department of Finance “to reimburse” the two directors “for back pay from the date their contracts expired to the present pay period.”

“In my opinion, these two individuals were no longer government employees upon the expiration of their contracts and should not have been paid any back wages. By compensating them with unjustified back wages, the CNMI government could be exposed to a taxpayer’s lawsuit,” said Mendiola.

Further, Mendiola said the action may be in violation of the Planning and Budgeting Act and the budget law.

“It is incumbent upon the Legislature, as a coequal branch of government, to investigate possible improprieties by another branch of government,” the senator said.

Sen. Diego M. Songao said the investigation would also determine whether the governor has the right to direct Finance to pay the directors.

Meantime, Sen. Paul Manglona said there is a question as to the directors’ employment tenure. He noted that the directors’ employment, although renewable every year, should be co-terminus with the sitting mayor.

“Their appointment to their posts was confirmed, which means that their employment also ends with the mayor, unless they are fired,” said Manglona.

Borja earlier clarified that he did not fire the two; he only decided not to renew their contracts.

Senate President Joaquin Adriano said that the directors’ annual leave payment only reached some $3,500, and not $10,000 as earlier reported.

In an earlier interview, Norbert Hofschneider claimed that their removal was political. The directors are associated with the administration’s party, Republican Party.

Borja had denied this, noting that such personnel action was part of his goal to accomplish his pending projects before his last term ends in January next year.