THE Office of the Attorney General will seek the enforcement of the consent judgment if MV Luta’s former owner, Luta Mermaid LLC, fails to pay the $400,000 it owes the CNMI government.
Attorney General Edward Manibusan informed Sen. Paul A. Manglona that “no payments have been tendered” by Luta Mermaid LLC.
“Before filing a necessary motion with the court to enforce the consent judgment, we are waiting for information from the Department of Finance on any payment that the Treasury may have received from Ms. Mendiola or other defendants,” Manibusan said. He was referring to Abelina T. Mendiola, Deron T. Mendiola, Fidel Mendiola III and Fidel Mendiola Jr., the defendants in the lawsuit over the $400,000 in public funds that Luta Mermaid received from Finance for MV Luta’s fuel and lubrication.
In March 2015, Rota Legislative Delegation Resolution 19-3 authorized then-Finance Secretary Larrisa Larson to make “an advance payment” of $400,000 to Luta Mermaid LLC “for the fuel, lubrication, and costs necessary for the maiden voyage of M/V Luta from Louisiana to Rota,” and to “provide for the personnel and operational costs of the Office of the Mayor of Rota.”
The AG noted that the CNMI government “agreed to the entry of a stipulated consent judgment” against the owners of Luta Mermaid LLC.
In agreeing to the consent judgment, Manibusan said, the defendants agreed to a payment plan to satisfy the $400,000 judgment.
He said Ms. Mendiola agreed to assign her salary from the Rota casino commission in the amount of $55,894.54 as partial satisfaction of the judgment.
“Thereafter, the Luta Mermaid owners jointly and severally, also agreed to pay any remaining balance amortized over a 48-month period with 3% interest per annum compounded monthly. No interest would accrue in the initial year,” the AG said.
Since there is no casino on Rota, the Rota casino commission relies solely on the island’s $2 million share of the $15 million annual exclusive casino license fee that Imperial Pacific International can no longer afford to pay.
In short, no one among the Rota Casino commissioners is receiving their $55,894.54 annual salary.
On Monday, Finance Secretary David DLG Atalig informed Rota delegation co-chairs Sen. Teresita Santos and Rep. Donald Manglona that Luta Mermaid LLC had not made any payment to the CNMI government.
Edward Manibusan
