Bellas says GOB had problems with banks

The now defunct Garment Oversight Board encountered problems with several banks in the distribution of the class lawsuit settlement funds.

Timothy H. Bellas, chairman of the terminated GOB, stated in his report that the GOB previously disclosed several issues encountered in distributing the large number of almost 14,000 checks using its limited staff.

Bellas said in addition, there have been difficulties in the distribution of the residual settlement fund checks since the checks were sent out to class members with an admonition stamped on each check that they would not be “re-issued” after the expiration of 60 days.

This was done, the former judge said, in an effort to close the board’s operations by July 31, 2008.

Bellas said that several of the financial institutions to which the checks have been presented interpreted the stamped language to mean that the checks would not be honored after the passage of 60 days.

The other problem, Bellas said, is that there have also been a number of residual settlement fund checks that were sent to the class members’ address, provided by the claims administrator, in the workers’ country of origin.

“However, some of these workers are still located on Saipan and relatives or friends have forwarded the checks to them back here on Saipan. This process has resulted in those checks actually becoming stale and non-negotiable,” he said.

In an effort to get as much of the residual settlement fund checks to the workers, Bellas said, the board continued to re-issue any checks that have been returned via mail because of the problems.

The re-issuance of checks was the reason why the then GOB proposed to the federal court that while GOB’s existence would end Friday, Oct. 31, 2008, there should be “caretaker operations” as its checking account will not be closed until Dec. 31, 2008.

Bellas reported that GOB still has in its possession $883,520.11 in grand total of class lawsuit settlement funds.

Upon closing the account on Dec. 31, 2008, Bellas said, all checks not cashed by that time shall be void or voided and he shall be authorized to transfer the balance of the checking account to a new Garment Worker Trust Fund account.

Upon the expiration of the Trust Fund, Bellas said, the trustees would solicit proposals from non-profit charitable organizations in the community, with the court’s approval. The trustees will then donate the remaining money to the chosen organization.