Return $1M or get sued

Gov. Juan N. Babauta is being asked to return $1 million in reprogrammed money to the Marianas Public Lands Authority by Dec. 15 this year or he will be slapped with a lawsuit.

The Marianas Public Lands Trust, the trustee of MPLA funds, issued the demand yesterday through its legal counsel, Vic DLG. Torres.

“We believe that, if this matter is brought before the court, MPLT will prevail. In the interest of resolving this matter without the need for litigation, we are respectfully requesting that Commonwealth Utilities Corp. return the money to MPLA on or before Dec. 15, 2005,” said Torres in a Nov. 23 letter to Babauta.

Babauta has been in control of the CUC since his May 19 state of emergency declaration on utilities. During this period, the governor has reprogrammed some $5 million to CUC to pay for fuel and repair power plant engines. Further, the governor had asked MPLA to help subsidize CUC by reprogramming $1 million.

Babauta’s decision was backed by the Attorney General’s Office, which said that the reprogramming was allowable.

Assistant attorney general Alan Barak, in an opinion, cited that MPLA may transfer property to government agencies for public purposes and that MPLA may flexibly use proceeds for the accomplishment of its functions. Further, he said that Babauta has authority to reprogram funds to the CUC emergency fund.

But Torres disagreed with the AGO’s findings. “Contrary to the AGO’s opinion, we believe that the transfer [or taking] of money from MPLA to CUC violates the Constitution,” said Torres, citing that MPLA’s constitutional mandate is “to use reasonable expenses for homestead development, land surveying, and administrative and management expenses and shall transfer the remaining money to MPLT, based on Article 11 section 5 (g).”

The letter said that thousands of eligible applicants are “desperately waiting for homestead lands.”

“In the spirit of cooperation, we sincerely hope and remain optimistic that litigation will be unnecessary. This letter is merely to ensure that we protect the funds belonging rightfully and only to persons of NMI descent,” said Torres.

The letter to the governor was decided during the MPLT board’s meeting on Tuesday, which was attended by governor-elect Benigno R. Fitial.

Fitial has been opposed to the governor’s reprogramming of funds to CUC. He also opposed the implementation of the CUC 3.5 cents fuel surcharge. He promised to remove the fuel surcharge once in office.

Meantime, the MPLT’s demand letter was copy furnished to the MPLA board and the AGO.

The MPLT board is chaired by former NMI Retirement Fund administrator Juan S. Torres.