THE District Court for the Northern Mariana Islands has issued an order requiring Gov. David M. Apatang and CNMI Finance Secretary Tracy Norita to personally appear at an upcoming status hearing regarding the NMI Settlement Fund.
In her order last week, designated Judge Frances Tydingco-Gatewood scheduled the status conference for Dec. 10 at 10 a.m.
The governor and Finance Secretary are expected to provide updates on the CNMI government’s compliance with its annual payment obligations to the Fund, as well as any obstacles to fulfilling them. If Apatang is unavailable, Lt. Gov. Dennis Mendiola is required to appear in his place.
The judge also directed Settlement Fund Trustee Joyce C.H. Tang to file a status report by Dec. 3. Tang must submit a supplemental report by Nov. 1 to address questions raised during the last hearing, including concerns regarding the internal audit of member files.
“Some members of the Class also expressed concerns about the audit process,” Judge Tydingco-Gatewood said.
Background
In 2009, retiree Betty Johnson sued the CNMI government for failing to pay amounts required by law to the NMI Retirement Fund since 2005. Johnson warned that the Fund would run out of money by June 2014, potentially preventing it from paying retirement benefits.
In Sept. 2013, the parties agreed to settle the lawsuit, and the federal court approved a $779 million consent judgment in case the CNMI government did not meet its obligations to the Settlement Fund. The Fund was created by the federal court as part of the settlement between the CNMI government and retirees.
The federal court appointed Tang as Settlement Fund trustee on Sept. 25, 2013.
Last January, Tang reported that the CNMI government made a $31.3 million lump-sum payment to the Fund for fiscal year 2025, using a loan from the Bank of Guam.
“Despite the economic challenges and funding issues, the government has prioritized the payment of the [Minimum Annual Payment] to the Settlement Fund,” Tang said.
