THE federal government yesterday sued Tinian Mayor Francisco M. Borja for alleged non-payment of a $1.7 million debt incurred over water resources investigations.
The complaint sought to collect the delinquent debt totaling $1,742,392 plus interest, penalties, and administrative costs from Borja and co-defendants Tinian municipal and CNMI governments.
Assistant U.S. Attorney Gregory Baka, on behalf of the U.S. government, brought the lawsuit at the request of the U.S. Department of the Interior and the U.S. Treasury Department pursuant to monies owed under joint funding agreements between the defendants and the U.S. Geological Survey.
Baka alleged in the complaint that in 1991, the then mayor executed and delivered to the plaintiff a joint funding agreement for water resources investigations for the period from Oct. 1, 1991 to Sept. 30, 1992.
Baka said the then mayor agreed to pay $729,000 within 60 days after the billing date.
Baka said the then mayor also executed the same agreement for the period from Oct. 1992 to Sept. 1993 in the amount of $202,592; from Oct. 1994 to Sept. 1995 in the amount of $226,500; from Oct. 1995 to Sept. 1996 in the amount of $298,700; and from Oct. 1996 to Sept. 1997 in the amount of $285,000.
Borja became mayor in 1998.
Baka said in 1999, Charles A. Wilson, director for the Debt Management Services of the U.S. Treasury Department, submitted letters to the Tinian mayor, advising him that the secretary of the interior would accept a reduced amount of $1,589,367 as compromise payment of the total debt of $2,765,499.
The mayor, Baka said, was to make three payments—$393,648 by Sept. 1999; $619,736 by Sept. 2000; and $575,983.96 by Sept. 2001.
The lawyer said the mayor verbally agreed with Carol Simpson of the Debt Management Services, and made a partial payment of $240,000 in Sept. 1999.
“The remaining balance on the other joint funding agreements totaling $1,742,392 plus interest is due and owing,” Baka alleged.
