MPLA hits back at Fitial

Embattled officials of the Marianas Public Lands Authority urged local and federal authorities yesterday to look into alleged fraud and possible violations of CNMI and U.S. banking laws by Gov. Benigno Fitial, in apparent response to a move by the governor to strip the agency of its autonomy and transform it into a department within the executive branch.

Fitial’s press secretary, Charles Reyes Jr., welcomed the call for investigations, saying that the administration looks forward to “an open and transparent process that allows for vigorous public debate on the issues surrounding MPLA.”

“We expect to hear both sides of the issue during the scheduled public hearings. We welcome any honest investigation of pertinent policy issues,” Reyes said. “The administration bears no animosity toward any MPLA board member or employee. The governor merely wishes to correct certain systemic problems at MPLA through legislation, with the blessing and support of the people.”

The MPLA board asked the Office of Public Auditor to audit and investigate the agency’s funds that are deposited with the Bank of Saipan, accusing Fitial of “fraudulent” dealings with the agency when the governor was still the bank’s president some years ago.

At the same time, the board asked the OPA to look into the governor’s special legal counsel Howard Willens’ accommodations at the Hyatt Regency Saipan, which are being allegedly paid by government funds.

MPLA board members said they are ready to present evidence to support the allegations against Fitial in the scheduled public hearing on House Bill 15-57, which has cited alleged grave cases of mismanagement and abuse of power by MPLA’s top officials. The Legislature will hold the public hearing at the Multi-purpose Center in Susupe this Friday beginning at 6pm.

In a letter to the House of Representatives, MPLA board members asked that the OPA, the Attorney General’s Office and the Federal Bureau of Investigation be invited to attend the public hearing.

All four board members—chairperson Ana Demapan-Castro, vice chair Manuel P. Villagomez, Nicolas M. Nekai and Felix A. Sasamoto—co-signed the request, furnishing the local and federal investigating bodies, including the U.S. Attorney’s Office, with copies of the letter.

“At the hearing, the MPLA is ready to present evidence of fraud, deception, and possible violations of federal and Commonwealth banking laws against the indigenous people of the CNMI,” the MPLA board members said.

The MPLA has more than $8 million in deposits with the Bank of Saipan. The bank has secured the MPLA deposits with U.S. government securities held by D.A. Davidson in the amount of $5,259,238, and more than $6.28 million worth of loans originated by the bank and backed by the Commonwealth Development Authority.

The board accused Fitial of defrauding the MPLA by “separately promising both the Northern Mariana Islands Retirement Fund and the MPLA the same collateral and by lying to both agencies regarding the security of their deposits at the Bank of Saipan, shortly before the receivership.”

The securities became the subject of the BoS receivership at the Superior Court. The MPLA had insisted that it has paramount rights over the money than the Retirement Fund, which has about $5.6 million in the bank.

The MPLA also rebutted allegations of inability to generate revenue for the government, saying that it has provided funds to the Marianas Public Land Trust.

“MPLA is also ready to present evidence that the AGO has been negligent and derelict in its duty to properly advise MPLA throughout the years that the AGO represented MPLA. These evidence are crucial and relevant for the scheduled hearing because one of the false, misleading, inaccurate, and/or exaggerated accusations against MPLA is that MPLA has not provided any funds to the Marianas Public Land Trust,” the MPLA board said.

Meanwhile, the board also asked Public Auditor Michael S. Sablan to audit governor’s counsel Willens’ contract with the CNMI, if any, to determine whether the government’s procurement procedures were followed.

“As you may know, the administration announced that Mr. Willens is working pro bono. Our information and belief, however, is that the taxpayers are paying Mr. Willens’ room and board and other accommodations at the Hyatt. We also received information that Mr. Willens has paid for a business license,” the MPLA board said.

The OPA has also been conducting audits on the MPLA’s funds. Sablan, however, has recused himself from the audits, being a cousin of MPLA’s Demapan-Castro. (With Agnes Donato)