THE government wants Randall T. Fennell to remain as Bank of Saipan’s receiver, Attorney General Robert T. Torres said yesterday.
Torres was reacting to Michael A. Pangelinan, the bank’s legal counsel, who asked Superior Court Presiding Judge Edward Manibusan to replace Fennell as receiver due to his alleged “lack of impartiality.”
“The commonwealth, through the banking commissioner and our office, reiterates our continuous support and full confidence in the receiver appointed by the court,” Torres told Variety yesterday.
Pangelinan also alleged that Fennell had begun to act outside the scope of his authority. Further, the receiver failed to take action against the perpetrators of the fraud on the bank despite the board’s request that these claims be “pursued immediately,” Pangelinan said.
But according to Torres, these allegations are unsupported by affidavits or statements from the bank’s board of directors.
Torres said the government will present its own assessment of Fennell’s performance during a hearing set for May 29.
Torres said based on the reports furnished by acting Commerce Secretary Fermin Atalig, “there has been no reason to question (the receiver’s) fiduciary responsibilities.”
Torres declined to comment on the details of his meeting with Fennell and another private attorney, Richard W. Pierce.
He also refused to comment on whether the Marianas Public Lands Authority can remove Tom Aldan as its chairman. Aldan is the bank’s former president and chief executive office, and has been indicted for allegedly trying to defraud the bank.
Torres said any board and commission member can only be removed for cause by the governor.
Checks for retirees
Meanwhile, Retirement Fund Administrator Karl T. Reyes said that by May 15, they will release checks to retirees and pensioners.
The checks are for the April 30 pension payments the Fund has distributed to less than 100 retirees and pensioners. The money for the checks, however, is deposited in Bank of Saipan, whose assets had been frozen by the government.
“But the money will be released on the 15th. They are ready. Those people that came in to change their allotments to another bank have been helped out already,” Reyes said.
There are 84 retirees and pensioners whose retirement checks are channeled through Bank of Saipan, he added.
Reyes said the Retirement Fund’s investments in other banks remain “sound.”
