THE Office of the Public Auditor is investigating possible conflicts of interest involving government officials and bank deposits.
Public Auditor Mike Sablan said since Nov. 2001, OPA has been conducting surveys and audits on the government’s deposits in banks and financial institutions, including possible violations of the CNMI Government Ethics Act.
“The audit is still ongoing, and the OPA survey findings released are just part of that larger audit,” Sablan told Variety.
Rep. Stanley T. Torres, R-Saipan and chairman of the House Ways and Means Committee, yesterday called on OPA to investigate government officials whose private businesses may be directly benefiting from the public fund deposits.
OPA has been conducting the investigation long before Torres raised the issue, Sablan said.
Torres raised this concern following OPA’s disclosure that over $23 million in government funds were deposited in banks that were not federally insured.
As of Dec. 2001, OPA said these government funds were deposited in Bank of Saipan, City Trust Bank and Isla Financial Services, Inc.
Juan S. Tenorio, chairman of the Commonwealth Development Authority and Northern Marianas Housing Corp., is a stockholder of City Trust.
Tom Aldan, chairman of the Board of Public Lands, was president and CEO of Bank of Saipan when OPA conducted its survey.
According to OPA, City Trust held $675,417 of CDA’s deposit, and $338,303 of NMHC’s deposit as of Dec. 2001.
“The public deserves to know whether these government officials’ private businesses are directly benefiting from government deposits, because that is a serious conflict of interest and is against the law,” Torres told Variety.
‘No conflict’
In a separate interview, Tenorio said he did not decide where CDA or NMHC funds would be deposited. He said it was the staff, including CDA’s comptroller, that made the decision.
“I have no say on that,” said Tenorio.
He added that he welcomes any OPA investigation.
“I have nothing to hide,” he said.
Aldan was unavailable for comment yesterday. Bank of Saipan, according to OPA’s survey, had over $8 million in Marianas Public Lands Authority deposits.
CNMI laws do not prohibit government agencies from depositing public funds in non-FDIC member institutions, but Torres said his concern is the conflict of interest issue.
According to OPA, the CNMI government faces financial risks due to its bank deposits that are not federally insured.
