Flashback – June 8, 2000-2005

[B][U]Jun. 8, 2000[/U][/B] [B]OPA warns DFW of possible violation of federal grants[/B]

The Office of the Public Auditor has warned that the CNMI Division of Fish and Wildlife may have placed the grant it receives from the United States government in jeopardy due to possible violations of an agreement it signed with the Division of Federal Aid. OPA mentioned the arrangement DFW had with its two employees who were allowed to enroll and attend classes at the Northern Marianas College during office hours sans the charging of the appropriate type of leave. The employees get a complete 8-hour pay even when they are out from work to attend classes at the College instead of their absences being charged to leave.

[B]NMIRF taps M&I for securities lending[/B]

The Northern Marianas Retirement Fund Board has chosen M&I (Marshall and Isley) Investment Management Company to do securities lending investment, according to its administrator, Juan S. Torres. He said M&I’s appointment was based on the recommendation of the Fund’s Investment Committee, which conducted a thorough analysis of the offers made by the firms that were short listed by Merril Lynch, the Fund’s consultant. “M&I offers a better package to fit our desire for portfolio diversification and at the same time realizing minimal risk,” Mr. Torres said.

[B][U]Jun. 8, 2001[/U][/B] [B]Fund underscore need for review firm[/B]

Fund officials underscored the need to set up a review utilization board to safeguard the Group Health and Life Insurance Program from erroneous medical and hospital billings. Fund Board Chair Vicente M. Camacho was critical of politicians for using the GHLIP to gain the support of electorates without taking into consideration the positive result a review firm can do for the program. “One can only surmise that there is political and business interest out there that do not want to see this program take off. It is election time and GHLIP can be sacrificed to maintain political self preservation,” said Camacho.

[B]CUC seeks AG’s opinion on Enron deal[/B]

Would the Commonwealth Utilities Corp. rebid the planned 60 megawatt power plant project or award it to the next highest bidder? All these questions would have to wait until CUC receives a legal opinion from the Attorney General’s Office on what exactly is the safest approach to take. Enron was awarded the controversial project but dropped it altogether recently. CUC executive director Timothy P. Villagomez confirmed that the utility agency has put everything on hold regarding the 60-MW power project.

[B][U]Jun. 8, 2005[/U][/B] [B]NMIRF surprised at CDA’s hiring of its staff[/B]

The NMI Retirement Fund was surprised over the Commonwealth Development Authority’s reported decision to hire its own comptroller, Noel Soria. “I’m surprised. I don’t know about it. Nor is the board aware of it,” said Fund administrator Karl T. Reyes yesterday. The CDA, which held a board meeting on Monday, said it would hire Soria at a starting salary of $55,000 a year. CDA, which has been without a comptroller for two years now, said Soria would be offered a three-year contract, with an initial six-month probation. Soria stands to have his salary raised to $60,000 a year when he completes his first year of employment and obtains a “certified management accountant” status. Soria confirmed that he did turn in an application to CDA but only learned of the reported CDA decision after reading it in the Saipan Tribune.

[B]Fitial warns BoG vs debt[/B]

House Speaker Benigno R. Fitial has formally cautioned the Bank of Guam about potential constitutional liabilities if it lends money to the CNMI government for operational purposes without a legislative approval. In a June 2 letter to BoG, which was released to the media yesterday, Fitial warned the bank against allowing the government to withdraw from a $10 million letter of credit for “CUC’s operating expenses.” “Although you did not require an opinion from the Legislative Branch of the Commonwealth government, the branch which serves as a check and balance in protecting public funds, I highly caution the bank in approving any withdrawal of funds pursuant to the standby letter of credit,” said Fitial in the letter, which was addressed to BoG executive vice president and chief operating officer William D. Leon Guerrero.