Rep. Ray N. Yumul said the issue is a concern for the cash-strapped CNMI government.
“It has come to my attention that certain excepted service employees of the commonwealth government are receiving housing benefits that may be contrary to law,” Yumul, R-Saipan, said in a letter to Public Auditor Michael Pai.
These employees include healthcare workers, teachers and lawyers.
“This matter is of great importance considering the declining economy and government resources. Moreover, it is not fair for resident employees in similar positions that do not receive housing benefits for their off-island hire counterparts to receive housing benefits if it’s in violation of the law or if there is no regulation authorizing such entitlement,” he added.
Based on his research, Yumul said the government is allowed to provide a monthly housing allowance of $600 for every off-island hire employee without dependents and $800 each for those with dependents.
However, this housing benefit is only provided for up to five consecutive years of employment within the CNMI government.
Yumul said a law was passed in 2005 establishing a sunset provision for housing benefits for excepted service employees by 2007.
“It appears that the excepted service regulations on housing allowance or housing benefit for employees recruited outside the commonwealth were automatically repealed as of Oct. 1, 2007 [two years after the effective date of Public Law 14-91],” said Yumul.
“Therefore, all new government employment contracts after Oct. 1, 2007 should not have included housing benefits. However, it has come to my attention that many contracts executed after Oct. 1, 2007 included housing benefits. Second, there are several reports that some government employees are receiving housing benefits notwithstanding the five-year restriction set forth in NMIAD § 1120-10-205(g),” he added.
The Retirement Fund earlier said that cutting the housing benefits of most off-island hire medical professionals like doctors and nurses, will help the central government meet its obligations to the pension agency.
Yumul said housing benefits could be better spent on operational or personnel needs of the government.
