Larson eyes repayment plan for Yutu premium pay

Former Department of Finance secretary Larissa Larson has admitted that she was not entitled to over $36,000 in typhoon premium pay that she was paid in January 2019 and has proposed that the Superior Court issue a judgment for her repayment.

In response to the lawsuit filed by Attorney General Edward Manibusan against Larson alleging illegal Typhoon Yutu overtime pay, Larson, through attorney Robert Torres, said she does not contest that she was not entitled to the alleged premium pay she had received.

“Ms. Larson submits that she does not contest and admits that she makes no claim to entitlement to the alleged ‘Typhoon Premium Pay’ amount of $36,775.43 paid to her on Jan. 7, 2019, by the authority of former CNMI governor Ralph DLG Torres,” said Torres.

In addition, Torres said his client does not contest nor oppose an entry of judgment against her for the sum of $36,775 with credit for her surrendering her accrued annual leave in the amount of $9,200.58, which she claims she waived in March 2019, following her resignation as Finance secretary.

“The net amount of plaintiff Manibusan’s claim against Ms. Larson, to which she submits and agrees to reduce judgment, is $27,578.85,” he said.

Larson, through her attorney, agrees to payment on the judgment because she claims she has not been able to reach a stipulated agreement with Manibusan.

Larson proposes that she pay off the proposed judgment, if granted by the court, in the sum of $250 per month.

Meanwhile, with respect to Manibusan’s claims for declaratory judgment against her, Larson argues that the Attorney General’s claims should be directed to the Office of Personnel Management or the office of former governor Torres.

“Those persons issued the purported unauthorized compensation directives or executive orders at issue in this pending civil complaint. Even as secretary of finance, Larson issued no directives nor gave any authorization for payment of the ‘Typhoon Premium Pay’ which she admits she received,” said Torres.

According to the 15-page lawsuit submitted to the Superior Court, Manibusan, in his official capacity as the attorney general of the Commonwealth, claims that the CNMI was harmed because of the authorized overtime pay received by Larson.

The OAG argues that Larson was not entitled to overtime and should be directed to return all the money she was paid in overtime.

According to the lawsuit, Larson’s total compensation in fiscal years 2019 and 2020 exceeded her statutory salary of $70,000, which is against the law.