LUTA Mermaid LLC, the former owner of MV Luta, has yet to pay the $400,000 it owes the CNMI government, Department of Finance Secretary David DLG Atalig informed the Rota Legislative Delegation on Monday.
The Rota delegation co-chairs, Sen. Teresita Santos and Rep. Donald Manglona, earlier asked the Finance secretary to comment on Saipan Local Bill 22-4 which proposes to “reserve” for the Rota inter-island medical referral and Rota medical subsistence program the $400,000 that Luta Mermaid LLC agreed to pay to settle the lawsuit filed by the Office of the Attorney General.
In a letter to the Rota lawmakers, Atalig informed them that Luta Mermaid LLC has not paid the CNMI government.
In March 2015, the Rota delegation adopted then-Senate President Victor B. Hocog’s Rota Legislative Delegation Resolution 19-3 authorizing then-Finance Secretary Larrisa Larson to make “an advance payment” for the fuel, lubrication, and costs necessary for the maiden voyage of MV Luta from Louisiana to Rota, “and to provide for the personnel and operational costs of the Office of the Mayor of Rota.”
In February 2017, the AG’s office sued Luta Mermaid LLC, which owed MV Luta, for receiving $400,000 in public funds without authorization, wrongful retention of public funds, unjust enrichment and using public funds for personal use.
In July 2019, Luta Mermaid LLC, agreed to repay the $400,000 to settle the lawsuit.
For his part, Sen. Paul A. Manglona introduced Saipan Local Bill 22-4 which would allow Finance to deposit in a special account the $400,000 that Luta Mermaid LLC should pay the government.
Atalig said Finance supports the legislation, but “at the present moment, Luta Mermaid LLC has yet to remit payment to the CNMI government.”
He said Finance “is in consultation with the Office of the Attorney General to seek legal remedies for the lack of compliance with the settlement agreement, but until such recourse is achieved, we are unable to certify the availability of these funds.”
