Inos: Emergency states remain

Lt. Gov. Eloy S. Inos said yesterday that the governor’s executive orders declaring a state of emergency for the NMI Retirement Fund, the Commonwealth Utilities Corp. and Commonwealth Healthcare Corp. will remain despite opposition voiced by senators and retirees on Wednesday, adding that these emergency declarations are likely to be extended beyond 30 days.

Inos, at the same time, said he’s “really surprised” and finds it “ironic” that legal fees associated with the Fund’s filing of a Chapter 11 bankruptcy petition reached $1.2 million.

The U.S. bankruptcy court dismissed the petition.

Inos said the Fitial administration would have to review these reported expenses at a time when the pension agency is in financial crisis.

“It’s ironic that we’re trying to reduce the bleeding and the Fund and these folks, they filed a lawsuit so that they can do something to benefit the Fund but at the same time they’re pushed to submit a bill to the tune of $1.2 million, to take that much money out of the Fund-the very Fund that they’re trying to protect. Kind of ironic,” Inos told reporters in an interview at yesterday’s signing of a proclamation at CHC declaring June 17-23 CNMI Nurses Week.

As for the Senate leadership and the Commonwealth Retirees Association’s opposition to the CUC emergency declaration, Inos said the administration respects everyone’s opinion and that the Senate has the prerogative to reject the order.

Senate President Paul Manglona (Ind-Rota) said the reasons that Gov. Benigno R. Fitial had cited in placing CUC under emergency have either been addressed or could be addressed without placing the agency under his wing.

But Inos said there’s more good than harm in having CUC, as well as the Fund and CHC, under the administration at this time.

The governor’s emergency declaration could only be rejected if both the House and Senate agree to reject it.

Inos said he hopes the Senate will meet with the administration on the issue before deciding on the matter. He also called on everyone concerned to read carefully the emergency declarations for CUC and the Fund.

“Definitely there will be [extension]. If the nature of the emergency will continue beyond the 30-day period and that the issues were not addressed, then definitely it will have to be extended for another 30 days,” he added.

Inos, who is leading the administration’s efforts to solve the Fund crisis, said the EO will protect the Fund from further financial harm, including costly legal fees.

“What that does is essentially puts a stay on essentially anything that’s happening by way of operating expense and so forth. No new contracts and stuff like that until the governor has the chance to review that,” Inos said, adding that the governor will issue a directive requiring that any disbursement out of the Fund would have to receive prior concurrence by the Finance secretary.

Inos assured that pensions won’t be cut. He, however, said the Fund’s plan to go after 120 retirees who were overpaid some $5 million in pension as a result of the Fund’s own misapplication of statute or miscalculation is on hold and is currently under advisement.

Inos said these same retirees will possibly start receiving the corrected amount of pension starting June 15.