By Mar-Vic Cagurangan
Variety News Staff

GEORGE Bamba, the governor’s chief of staff, yesterday defended the administration’s proposed $123.8 million loan agreement with the Bank of Guam, urging senators to take quick action on the bill that would clear the way for payment of the cost of living allowances owed to 4,000 retirees.
“We know what they have endured and we empathize with them as they struggle to pay for prescription drugs or return to  work to support the children and grandchildren who depend on them,” Bamba said, testifying before the committee on revenue and commerce chaired by Vice Speaker Eddie Calvo, R-Maite. 
 “These are the people we are trying to help.  They are the ones who need our attention and who have waited far too long for this money.  How can  anyone, in good conscience, turn a blind eye to their needs?” he added.
 Retirees testified during the morning public hearing.
 The administration is seeking to borrow $123.8 million from the Bank of Guam-led consortium to pay off the $123 million in COLA that GovGuam owes to 4,000 retirees. It pledges $10 million from Section 30 funds for repayment of the loan, which is proposed to be paid back in 15 years at an annual interest of 7 percent. The first payment would be made in March 2008.
 Mike Phillips, attorney for the class, endorsed the passage of Bill 23 which he said “is favorable to the class.”
 Sen. Ben Pangelinan, D-Barrigada, proposed a mechanism to facilitate the COLA payments. He suggested that the administration director issue a promissory note to the retiree class, which they can use, sell or collateralize with the bank.
“Concurrently, we must pass legislation for continuing appropriations in the amount of $10 million from Section 30 funds and $3 million from the general fund to make the repayment source exclusive to Section 30 funds to be issued  to pay the note issued to the retirees,” Pangelinan said.
 During the morning hearing, angry retirees testified at the Legislature, urging senators to speed up the passage of the administration bill.
 “I’m getting old and I don’t know if I will die tomorrow. This issue was resolved by the court a long time ago, but it has been dragging on for far too long,” said Jose Chargualaf, a former senatorial candidate.
 Vicente Garrido, also a former senatorial candidate, said two retirees in his neighborhood just died recently. “Don’t hold it any longer because we don’t know when the next retiree is going to die,” Garrido told the committee.
Garrido also lambasted Public Auditor Doris Brooks for making a public statement in a television interview that there was no need for the government to rush the COLA payments.
 “That was an insult to us. Doris Brooks doesn’t get it. You need to rush the COLA payments because we are dying,” the infuriated Garrido said.
 “The (female) retirees don’t wear lipstick anymore because they are old. But Doris Brooks, I see her on TV wearing too much lipstick. She doesn’t understand our situation,” Garrido added.
 Another retiree, Vicente Cruz, said low-income retirees are the ones most hurt by the government’s failure to fulfill its obligation.
 “I have six children and we’re living in a house that we rent for $600.   COLA would mean a lot to us,” Cruz said.
 He suggested that instead of calculating payment amounts based on the retirees’ salaries when they were in service, the government should pay everyone an equal amount.
 “The salaries were low when we were working. The low-income retirees need this more than the ones who were making over $100,000 a year,” Cruz said.
 Phillips said almost half of the class had passed away since the lawsuit was filed 14 years ago.
 Phillips said the case would have been settled a long time ago had the government decided to recognize its obligation sooner. “The government instead decided to roll the dice,” he said.
 The retirees, Phillips said, have been patient and getting false hopes from payment plan proposals that come and go.
 “Before the election, it appeared that they were going to get paid. And then after the election, they were made to believe that they were going to get paid before Christmas,” Phillips said.
 Hopes for COLA payments came when the Legislature passed a bill that allows the governor to tap special accounts and enter into structure negotiations with the plaintiffs’ attorney. The special accounts had over $20 million.
 “We don’t know what happened to that. There was no explanation,” Phillips said.