‘Probe CUC reprogramming’

The House of Representatives believes that Gov. Juan N. Babauta has illegally reprogrammed funds for the Commonwealth Utilities Corp. since his declaration of a state of disaster emergency on utilities last May.

The House is now demanding that the governor submit to the Legislature “a complete financial analysis” of his alleged illegal diversion of funds.

At the same time, the House demanded that the Office of Public Auditor and the Attorney General’s Office “investigate the illegal use of public funds by the governor.”

These demands are contained in House Joint Resolution 14-42, which the House adopted during its session Friday morning.

“The people of the Commonwealth, through the Legislature, hereby demand the Governor to submit to the presiding officers of the Legislature a complete financial analysis showing the sources and the amounts that were illegally diverted by the governor to pay for the CUC’s debt and operational cost,” reads part of the resolution, which was voted on in a voice vote.

It cited that under the law, 1 CMC subsection 7402 and 1 CMC subsections 7302 and 7403 provide that “no funds may be reprogrammed, and no obligation or contract for the expenditure of Commonwealth funds shall be made for any purposes other than the public purposes for which the funds are appropriated.”

It said that the law also provides that “no Covenant funds may be reprogrammed or otherwise transferred or borrowed from capital improvement and economic development accounts to government operational accounts.”

It further said that the governor is only allowed by law to reprogram up to 25 percent of funds appropriated by the annual appropriation for the operations of the government.

Any reprogramming that exceeds the 25 percent limit shall be subject to prior approval by the Legislature, the House said.

The governor earlier disclosed that since his May 19 emergency declaration, he had reprogrammed $5.1 million from local funds and $2.6 million from capital improvement projects for CUC.

Lately, he said that the Marianas Public Lands Authority has agreed to contribute to the CUC funds by reprogramming some $1.3 million.

The CIP reprogramming was reportedly used with the consent of the federal government for the power plant repair and improvement in Lower Base.

Meantime, the House acknowledged in HJR 14-42 that the Legislature earlier adopted HJR 14-36 supporting the governor’s disaster emergency declaration and “authorizing the governor 100 percent reprogramming authority from available Commonwealth funds to remedy the power generation problems.”

Press secretary Peter A. Callaghan said yesterday that the governor would have no problem submitting the reprogramming documents to the Legislature.

He maintained that the governor could not have done any illegal reprogramming because he has that authority under an emergency situation.

Further, he said that the Legislature gave him 100 percent reprogramming authority to address the CUC power crisis.

“He’s got reprogramming authority [under] the Constitution. It’s not illegal. He can take money from anywhere he wants by virtue of the fact that he declared a state of emergency. …There’s nothing to hide. I’m sure he will be forthcoming in [showing] where the money came from,” said Callaghan.

He also welcomed calls for investigations.

“I’d say once again that it’s not an illegal use of public funds but the governor has never shied away from any OPA investigations,” said Callaghan.

In a July list provided to the Legislature, the Department of Finance showed that the $5.1 million reprogrammed for CUC came from the following programs:

Tobacco Control Fund/Tobacco Control Revenue: $940,814

CNMI State Based Tobacco Control: $98,037

CNMI Chronic Disease-Diabetes Control: $226,485

CNMI Cancer Registry: $67,960

Breast & Cervical Cancer: $47,398

Enforcement of Local Tobacco Regulations: $29,908

Rota Health Center: $22,500

Rota Youth Programs: $12,406

Tinian Health Center: $7,872

Tinian Youth Organization: $5,030

Sub-total: $1,458,410

DEVELOPER’S TAX

Developer’s Tax-Saipan: $26,471

San Antonio Dispensary: $810

DanDan Basketball/Road Project: $25,302

Developer’s Tax-Rota: $332

Rota Various Power Distribution: $48,009

Developer’s Tax-Tinian: $45,842

Sub-total: $146,766

ACTIVE REVOLVING ACCOUNTS

Board of Nursing Examiners: $178,047

CHC/GHI Revolving: $128,461

DPH Environmental Quality/Sanitation Revolving: $387,897

Rota Municipal Council back pay: $58,007

Saipan Ambulance Fee Revolving PL 13-12: $553,392

Tinian Ambulance Fee: $1,280

Rota Ambulance Fee: $3,028

Sub-total: $1,310,112

OLD REMAINING BUDGETS

Pre 1996 Section 702 Talks: 1909 – 38,446

Pre 1996 Jr. ROTC: 1910 – 2,984

Pre 1996 TIQ Guesthouse Operations: 1920 – 1,551

Pre 1996 CHC FMS: 1921 – 10,482

Pre 1996 Finance FMS: 1928 – 12,977

2003 Asia Pacific Little League: 1932 – 1,135

Pre 1996 Retirement COLA: 1933 – 87,000

Pre 1996 DLNR Melon Fly: 1934 – 37,266

2000 MV Shogun Settlement: 1935 – 26

PL 8-2 PSS Lapse: 1940 – 131,321

PL 11-41 30% Retirement Bonus: 1941 – 129,924

PL 10-41 Rota Mayor: 1942 – 11,955

PL 10-41 Salary Adjustment: 1943 – 520,698

1999 DLNR Pagan Reef Damage: 1946 – 2,119

FY96 OPA Medical Referral: 1947 – 581

PL 8-2 Miscellaneous: 1974 – 3,110

Sub-total: $991,575

TOBACCO SETTLEMENT

DPH Community Guidance Center: 7651 – $355,553

DPH Children’s Health Ins. Program: 7652 – 50,261

DPH Division of Public Health Program: 7655 – 25,131

Coalition of Private Schools: 7658 – 47,120

Mayor of Rota: 7657 – 62,827

Mayor of Tinian: 7658 – 46,895

Sub-total: $387,787

OTHERS

Fina Sisu Sewer System Project: $500,000

CDA: 315,000

Sub-total: $815,000

Grand total: $5,109,650

HJR 14-42 was introduced by House Speaker Benigno R. Fitial, Vice Speaker Timothy P. Villagomez, Reps. Oscar M. Babauta, Jesus Lizama, Crispin Ogo, and Justo Quitugua. It now goes to the Senate for action.