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House panel asked to reject bill using 25% of criminal, civil fines for DPS operations
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Posted on Feb 05 2012
NMI Retirement Fund administrator Richard Villagomez asked House Ways and Means Committee chair Rep. Ray Basa (Cov-Saipan) not to pass a Senate bill setting aside 25 percent of all criminal and civil fines collected by the courts for the Department of Public Safety’s operations because of the bill’s “damaging effects” on the Judiciary’s ability to repay the Fund for the so-called Judicial Building Loan.
That loan was for the construction of the judicial complex in Susupe. The Fund lent over $13.8 million for this loan, with monthly payments of $120,000. A 1995 agreement assigned all court collections from criminal and civil fines and revenues to go toward repayment of that loan.
But as of Nov. 30, 2011, the Judiciary has not been remitting payment of almost $1.2 million for the loan, and the arrears continue to increase.
“Diverting 25 percent of collections will further impair the repayment of the loan and the Fund’s revenues,” Villagomez told Basa.
The Judiciary has reported that total revenues have dwindled drastically in recent years, and now average some $60,000 a month, “which is clearly not sufficient to satisfy monthly loan payments.”
Basa’s committee is still reviewing Senate President Paul Manglona’s (Ind-Rota) Senate Bill 17-12 that senators passed on July 28.
Villagomez said the Fund’s ability to meet pension payouts is dependent on the cash collected from all sources including the Judicial Building Loan.
“The fact that it is in default is a grave concern as any reduction in revenues will result in an increase in drawdowns causing assets to be depleted sooner than anticipated, currently around September 2014…We respectfully request your Committee’s report to reflect our concerns and recommends against the passage of S.B. 17-12,” Villagomez added.
