House minority bloc wants independent audit of federal unemployment aid processing

THE House minority bloc on Wednesday shared with the CNMI Department of Labor the feedback from people who have issues in their applications for Pandemic Unemployment Assistance and Federal Pandemic Unemployment Compensation.

In their joint letter, House Minority Leader Tina Sablan, Reps. Franklin Babauta, Sheila Babauta, Edmund Villagomez, Donald Manglona and Richard Lizama said they believe that “a thorough and independent audit of the system is warranted to identify and resolve  the issues that are causing errors, delays, and frustration, especially as thousands of people still await full payments of their unemployment benefits, as additional federal unemployment assistance has been extended beyond December 2020, and as the Legislature considers establishing a CNMI unemployment insurance program.”

The key concerns in their report, the minority bloc members said, were collected through emails and online surveys from nearly 200 respondents; a listening session with a group of seven PUA claimants held on Nov. 17; a forum organized by PUA claimants and labor advocates on Nov. 24 attended by approximately 50 people; oral and written testimonies at a town hall meeting on Dec. 9 attended by over 200 people and more than 100 individual casework files.

The House minority bloc members said the problems affecting the PUA program “truly ripple across our entire community, and we all have an interest in addressing these issues and getting unemployment assistance out as quickly as possible.”

They added, “We hope you will find this feedback constructive, and expeditiously resolve the areas of concern that constituents have identified with the PUA program. We strongly believe an independent and professional audit or similar assessment of the program would be both helpful and necessary to improve implementation, and urge you to request this undertaking as soon as possible.”

The following are among the issues mentioned by applicants:

• Payment delays and discrepancies.

• Poor communications and lack of transparency.

• Possible discrimination by DOL in the adjudication of applications.

 • Constituents residing on Rota and Tinian said assistance from the PUA program has been especially challenging and unequal for them.

• Disorganized operations. Extremely long lines and wait times in excess of six hours to receive any service, especially during the earlier months of implementation of the PUA program.

• Lack of  public restroom facilities at DOL, despite the high volume of people waiting in line for hours including senior citizens, people with sensitive health conditions, and individuals with children.

• DOL staff need more training and a better casework management system.

• No priority of service for veterans.

• Inconsistent determinations of “qualified alien.”

• Confusing forms and filing process.

• Online portal glitches and lockouts.

•  PUA benefits were withheld or delayed because they did not have on-island bank accounts.

• Others said they believe their PUA benefits have been withheld because they have been working remotely off-island for CNMI-based employers during the Covid-19 pandemic, and that their applications may have been tagged “fraudulent” as a result.

• Data entry errors and abrupt switches to paper checks.

To read the complete letter of the House minority bloc to CNMI DOL, go to https://documentcloud.adobe.com/link/review?uri=urn:aaid:scds:US:5b676ea5-e090-45f3-b9aa-6ae6a3c7ec23

In an earlier statement, CNMI DOL Secretary Vicky I. Benavente said: “We hear and empathize with our claimants’ frustration in the complexity of this federal program and federal guidance. In order to ensure the integrity of the program, the future of continued federal support, and the prevention of CNMI liability on fraudulent claims, the Department of Labor must operate within the confines of the applicable federal law and institute safety measures to prevent fraudulent claims.”

She said CNMI DOL “recognizes that these fraudulent claims have caused significant delays. The department is working around the clock to adjudicate claims and process payments to all eligible claimants. However, we remind the public that if a claim does not provide proper justification of unemployment due to the pandemic, refusal to submit required documents, or declared incorrect earnings, then that claim is deemed fraudulent under the PUA federal guidelines and USDOL standards.”

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