THIS is to clarify and respond to the article in your newspaper on April 30, concerning the suit against myself and the Municipality of Tinian over a debt to the United States Geological Survey for wells drilled on Tinian long before I became the mayor.
Near the beginning of my administration in 1998, I received notice that prior mayors of Tinian had contracted with USGS for the drilling of test wells on Tinian and that the municipality was being billed for over $2 million.
My legal counsel advised me that since Tinian is not a “chartered municipality” we were not in danger of being sued and that any suit on this issue would necessarily be directed against the central government of the CNMI of which Tinian is a part.
Nevertheless, I was concerned and asked my counsel to look into the matter and do what he could about the debt.
My counsel than began a negotiation with Debt Management, a division of the United States Treasury Department which ultimately led to contact with the then United States secretary of the treasury, who kindly reduced the debt almost in half and waived penalties and interest. In addition, my counsel arranged for the Commonwealth Utilities Corp. to pay $200,000, on the debt, in reimbursement for some equipment that USGS had given them when they exited the island.
Upon the end of negotiations with the secretary of the treasury, and in spite of the fact that the documentation revealed that prior mayors signed contracts with USGS for money that was not appropriated, I directed my counsel to give a heads up to the central government concerning this debt. He met with the Ways and Means Committee of the 11th Legislature, communicated with the then Washington representative, met with the then attorney general, and communicated with the then governor but made no progress and no further payments were made. A contract was sent to me by Debt Management which I did not sign because I did not feel that my administration was responsible and in any case knew that as a non-chartered municipality, Tinian could neither sue nor be sued.
I hope that this letter clears the matter up at least insofar as where the responsibility lies and fully expect that this suit will be redirected to the CNMI, which I am advised is the proper party rather than the municipality of Tinian and myself.
FRANCISCO M. BORJA
Mayor of Tinian and Aguiguan
