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MPLT to stop remittance to general fund beginning FY 2012
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Posted on Apr 27 2012
By Moneth Deposa
Reporter
Reporter
The central government will see no transfer of interest income from the Marianas Public Land Trust beginning fiscal year 2012 as a result of the millions of monies the trustees provided-and may provide-as loan to the Commonwealth Healthcare Corp. this year.
MPLT chair Pedro Deleon Guerrero disclosed this during a break in yesterday’s board meeting, citing the deferment of funds transfer may go beyond five years depending on the outcome of a bill pending at the Legislature which proposes $7 million additional line of credit for the public hospital.
MPLT is the agency tasked to handle the payments for all public land leases remitted by the Department of Public Lands and which the trustees invest in international markets for higher returns and growth.
Each fiscal year, Deleon Guerrero said MPLT transferred interest income of approximately $2 million to the general fund, which is being used by the government to run essential services.
To date, a total of $4.58 million has already been loaned out to the corporation including the $1.58 million for the federal electronic health record system project.
Deleon Guerrero said that under this loan agreement, the corporation is assigned a 12-month period to pay-either in part or in full at the end of fiscal year-what it drawdown with 7 percent monthly interest.
Because the $4.58 million provided was taken out from the investment fund, this resulted in the suspension of yearly remittance to the general fund for two years-FY 2012 to 2013.
Deleon Guerrero, who supports a pending bill that proposes a $7-million line of credit to CHC-disclosed that if this becomes law, deferment of yearly remittance to the general fund will go beyond two years but five years or beyond as overall loan will be at $11.58 million as what originally proposed for the public hospital.
However, the chairman pointed out that if the corporation makes good on its payment yearly, they have five years to continue the drawdown which means $11.58 million credit line will increase.
The chairman said MPLT last provided funds to the executive branch during a recent power disconnection in the public schools’ administrative offices and some areas in the public hospital.
