This illustrates, once again, that the focus was misplaced during the budget “deliberations.” There’s no money! That is the problem. And the solution is to cut costs and to pull this economy out of a dangerous downward spiral — not raise fees and taxes that will only further punish the private sector, this bloated and incompetent government’s main source of revenue.
The people are looking for evidence that their leaders understand the magnitude of this crisis and know how to offer solutions that protect the CNMI’s future and not just political careers. Sadly, their trust is again misplaced, as the sole source contracts with administration cronies amply demonstrates. Over $700,000 will go to well-connected contractors. Moreover, as the administration readily admits, it can ignore the results of the federally funded desk audit of DCCA and DPS — without even sending federal taxpayers a “thank you” note.
Regarding the ARRA contract, if the former Commerce secretary cannot live with his CNMI government salary, he should have taken that into consideration when he was offered the post. He should have declined it. A cabinet appointment is supposed to be the capstone of a long and distinguished career in public service. In the CNMI, however, loyalty to the governor, not competence or even ethics, is the only requirement to serve in his cabinet.
The Government Ethics Act of 1992, in any case, includes a “revolving door” provision that prohibits public officials from taking a position or contract for work in which the public official or employee “participated personally and substantially in the subject matter of the transaction during his term of public legal authority.
With respect to a contract, this prohibition shall be permanent as to that contract.” This “revolving door” provision is integral to maintaining public trust. The governor’s attorney general may parse these words however he chooses, but the ARRA contract is in violation of the spirit if not the letter of the Government Ethics Act.
By the way
IF the former Commerce secretary could not move ARRA grant expenditures forward with the full support of a cadre of professionals in his department and a small army of contractors, why does the administration think he will be more successful as a solo contractor? There is no doubt that the CNMI needs a lot of help in submitting grants and spending federal funds, but this arrangement won’t solve that problem.
Of the $80 million in ARRA grants awarded to the CNMI, only $40 million has been spent, and the clock is ticking. As long as the administration is intent on hiring political cronies instead of professional employees, it will not meet its obligations and the commonwealth will continue to lag in getting badly needed funds where it can do the most good — circulating in the economy.
Another economic summit
THE feds are, once again, funding a CNMI economic summit that will pay cursory attention to labor issues as well as technical assistance and grants for certain projects. This is all good. But what the CNMI really needs is local capacity to plan well and execute it. Local capacity, however, is nonexistent as the last few years have demonstrated.
CUC is a case in point. It is exempt from cut-backs slated to begin on Oct. 24 because it is supposedly not receiving local government funds — except for “loans” and advance payments. CUC, to be sure, has paid millions of dollars in fees to a long list of contractors and the community has seen some improvements, thanks to the millions in federal grants provided to maintain the engines. But fuel cost will remain a problem for the foreseeable future and this will interrupt service and result in dwindling collections.
There are good plans sitting and waiting to be implemented — no long wait, no new contractors needed. Perhaps the U.S. Department of Commerce can be persuaded to help develop and then help implement a business marketing plan that draws both local and outside investments. Maybe the U.S. Department of Defense can invest resources to assist the CNMI develop a plan to take full advantage of the proposed military projects on Tinian.
CNMI officials should look into these ideas.
