Fund sues CNMI govt, agencies

The NMI Retirement Fund has filed separate lawsuits against different government agencies for alleged failure to remit payments. The lawsuits were filed before the U.S. District Court for the NMI Bankruptcy Division.

In the first complaint, the Fund named as defendants the Commonwealth Government Credit Union, the CNMI government, and Finance Secretary Larrisa Larson.

In the second complaint, the defendants are the Public School System, Education Commissioner Rita A. Sablan, Board of Education secretary and treasurer Galvin S. Deleon Guerrero, BOE members MaryLou S. Ada, D. Tanya King, Lucia Blanco-Maratita, and Herman T. Guerrero.

The third complaint named the Commonwealth Healthcare Corp. as the sole defendant.

The fourth complaint’s defendants are the Northern Marianas College, NMC president Sharon Y. Hart, NMC treasurer Frank Rabauliman, and Board of Regents members Juan T. Lizama, Elaine Hocog Orilla, Andrew Orsini, Maria T. Peter, and William S. Torres.

The fifth complaint named the CNMI government and Finance Secretary Larson as defendants.

The Fund, through counsel Braddock J. Huesman, is suing the Commonwealth Government Credit Union for breach of contract after it allegedly failed to make scheduled payments on the $2 million it borrowed from the Fund on Aug. 15, 1996. Huesman said the defendants ceased remitting payments on Aug. 29, 2011.

The Fund is demanding unspecified damages, court costs, and attorney’s fees.

In the complaint against PSS, Commonwealth Healthcare Corp., NMC, and other co-defendants, the Fund is suing for breach of contract, saying the defendants’ failure to remit payments at the actuarially determined rate violates the law and that such failure to remit payments should be penalized.

This failure, Huesman said, contributed to the Fund’s need to file for Chapter 11 bankruptcy petition.

The Fund is seeking unspecified damages.

Huesman said that PSS’ past due payments, including penalties, now amount to about $30 million, while CHC’s past due amounts, including penalties, now total more than $7.4 million. NMC, on the other hand, owes the Fund almost $8 million, Huesman said, representing past due employer contributions and penalties.

Huesman said these failures to remit payments require the imposition of penalties.

In the complaint against the CNMI government and Larson, Huesman said the CNMI government breached a financing agreement with the Fund in February and March 1995 to finance the construction of a judicial complex.

He said the CNMI government has been in default since January 2011 for failing to make timely payments. Huesman said the CNMI has ceased paying the revenues received by the Judiciary to which Fund is entitled under the financing agreement.

The Fund is seeking damages, court costs, and expenses, for breach of contract.

Huesman also asked the court to appoint a receiver to collect and remit all fines, fees, and monies gathered and collected by the Judiciary.