By Moneth G. Deposa
Variety News Staff

AN investigation conducted by the Office of Public Auditor and the Attorney General’s Office has disclosed that a number of employees, past and present, have received improper sick leave conversions and payouts at the Commonwealth Development Authority.
In a three-page letter to the Legislature, Public Auditor Mike Sablan said OPA is looking into the improper sick leave conversions and payouts at CDA and its umbrella organization, the Northern Marianas Housing Corp.
Sablan said these conversions and payouts occurred between Nov. 2001 and July 2005.
He did not discuss details, saying it may jeopardize pending settlement and recovery actions.
“At this time, OPA has discussed methods of repayment and received proposals from most of the employees as to the manner in which the funds will be repaid,” Sablan said in his letter, adding that OPA’s legal counsel has been working closely with the AGO in drafting the settlement agreements.
He said these agreements can be finalized by the end of next month.
The proposed settlements are with current employees of CDA and NMHC, he added.
“OPA does intend to assist in obtaining settlements with former employees who have left CDA,” Sablan said.
OPA first became aware of the conversions and payouts when it received two hotline calls in July 2005.
Sablan said OPA requested confirmation and specific information from CDA’s management regarding the conversion payouts in Aug. 2005.
“At that time, CDA’s management was not forthcoming with the requested information and took the position that the payments were not improper because the CNMI’s personnel regulations did not expressly prohibit such conversions and payouts. At the same time, CDA’s management noted that the practice had been stopped,” Sablan said.
From August to November 2005, Sablan said OPA and CDA exchanged several communications regarding the issue.
“In Dec. 2005, OPA decided to seek the assistance of the CDA/NMHC boards. While not expressly agreeing that the sick leave conversion and payout process was improper, they did note that the practice had been discontinued and they were anxious to come to some resolution of the prior distributions,” Sablan said, adding that “all of the employees we have met with have agreed to repay any improper sick leave payouts they received and have submitted proposals for the AGO’s consideration.”
Senate President Joseph M. Mendiola, Covenant-Tinian, and Speaker Oscar M. Babauta, Covenant-Saipan, asked the AGO on March 15 to investigate CDA’s illegal conversion practice.
Sablan, on the same day sent his letter to the legislature.