Vol. 34 No.232
       ©2007 Marianas Variety
Wednesday, February 7, 2007 www.mvariety.com
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Governor asked to account for $23M in initial COLA payments

By Gerardo R. Partido
Variety News Staff

A DEMOCRATIC senator has asked the administration to account for some $23 million set aside for the initial cost of living allowance payments.
Sen. Ben Pangelinan, D-Barrigada, has filed a Freedom of Information Act request to the governor and other administration officials, charging that the administration failed to voluntarily provide information on the $23 million already earmarked for the initial COLA payments.
Public Law 28-151 provides for COLA payments to government of Guam retirees as ordered by the Superior Court and authorizes the administration to expend funds from certain accounts to comply with the COLA order.
But according to Pangelinan, the governor’s chief of staff, George Bamba, has informed the Legislature that funds appropriated by P.L. 28-151 are no longer available, after saying earlier that $23 million in government funds was “free, clear and available” to pay retirees.
During the public hearing on Bill 23, which discussed the government’s plan to borrow COLA payment money from a lending consortium, Pangelinan said Bamba agreed to provide the Legislature’s finance committee with a reconciliation of the contracts awarded, bids released and funds encumbered for payment on projects after the cut-off date used to determine that the $23 million was available.
But after repeated requests, Pangelinan said no information has been provided. “A reply from Mr. Bamba failed to provide the information on what happened to the funds,” the former speaker said.
Pangelinan said he filed the Freedom of Information Act request to compel the governor and several agency heads to release the needed information.
“I believe we owe it to our people to find out where these monies went. It’s disconcerting that the administration has not been too forthcoming with providing everyone the information and we’re left with no other recourse but to file a Freedom of Information Act request for information that should already be available,” Pangelinan said.
He added that his office has also offered on several occasions to sit down with the governor and assist him in finding solutions to resolve this issue.
“However, I have not received a single call,” the Democratic senator said.
Pangelinan has already introduced Legislative Resolution 4 (EC), which would authorize the governor to arrange a line of credit of up to $10 million to facilitate an initial payment to the COLA retiree class.
According to Pangelinan, Guam law authorizes the governor to arrange a line of credit for $6 million and up to $10 million, with the amount in excess of $6 million getting approval from the Legislature by resolution.
In a letter submitted to the governor, Pangelinan said he shares the administration’s commitment to make good on the government’s promises to the retirees.
“I once again reiterate that I am available to meet with you at any time to discuss any and all possible solutions. I commit to continuing all collective efforts in finding a solution that meets our entire obligation to the retirees,” Pangelinan said.
Legislative Resolution 4 (EC) has now been referred to the appropriate standing committee of the Legislature.
Meanwhile, the administration has up to four working days upon receipt of the Freedom of Information Act request to respond to Pangelinan.