CDA Executive Director Manny Sablan said his office first released $1 million to the Department of Finance.
A disbursement of $1.9 million followed.
Sablan said the money was sourced from the unobligated CIP funds and the interest income earned from the $140 million bond that the CNMI government floated years ago.
He said the $2.9 million was reprogrammed for payroll through the emergency powers of Gov. Benigno R. Fitial.
Although CDA agreed to release the money, Sablan said it was the only time the government could tap unobligated CIP funds for payroll unless more interest income is identified.
“I indicated to them that that was it. This is not CDA’s money. This is under the bond. You see, $140 million was floated so there is money that has not been obligated and also the interest income from that bond. That money are available for appropriations or in this case for reprogramming pursuant to the emergency powers granted to the governor,” said Sablan.
The emergency powers granted to the governor to reprogram money for payroll specified the amount and the period for which it could be tapped.
With steadily declining tax collections and cash-flow problems, the CNMI government continues to struggle to keep up with the over $5 million biweekly payroll of its estimated over 4,000 employees.
