MARIANAS Public Land Trust Chair Vianney B. Hocog has expressed concern with a key provision of Senate Legislative Initiative 23-1.
Authored by Senate President Edith Deleon Guerrero, S.L.I. 23-1 proposes to amend Section 6 (d), Article XI of the CNMI Constitution to require that the accrued interest on the investment of public land proceeds “is reserved for the benefit of” people of Northern Marianas Descent or NMDs.
The CNMI Constitution allows MPLT to transfer the accrued interest of the proceeds from public lands leases to the general fund which the Legislature can appropriate for government operations, programs and activities not necessarily for the benefit of NMDs only.
S.L.I. 23-1 would require MPLT to “deposit in an NMD account, separate from MPLT funds and accounts,” the remaining interest accrued on the trust proceeds except that the trustees may retain the amount necessary to meet reasonable expenses of administration.
S.L.I. 23-1 states, “The funds in the NMD account shall be used strictly for the benefit of NMDs through legislative appropriations.”
S.L.I. 23-1 is now with the Senate Committee on Judiciary, Government and Law.
In his written comment to the committee’s chair, Sen. Celina R. Babauta, MPLT Chair Hocog said the legislative initiative would not allow for “flexibility” in the use of MPLT funds.
He noted that MPLT is withholding the interest income as payment for the $15 million borrowed by the CNMI government to cover the expenses it incurred for the recovery from Super Typhoon Yutu in 2019 as authorized by Public Law 21-3 as amended by P.L. 21-6.
The CNMI government has pledged to pay the $15 million loan at an interest rate not to exceed 7.5% per annum for a term of five years.
Hocog said, “In the event the initiative is passed, the CNMI government will no longer have the accessibility/flexibility to advance/loan future distributable earnings.”
