(DPL) — The Department of Public Lands issued the following statement Wednesday:
“The [Notice of Violation or] NOV issued is standard and not political, the sensitivity of this matter is understandable, but rest assured there is not subjectivity on the matter,” stated DPL Secretary Sixto Kaipat Igisomar.
“Additionally, our hard-working compliance inspectors will continue to make sure every lessee complies with our lease terms and conditions. When I first came in as secretary, one of the priorities was to assist our compliance officers with the overwhelming files that were backlogged during the Covid-19 global pandemic. A message to every lessee: review your lease agreements and visit our office if you have any questions, and submit your payments, documentations, and reports on time, so as to alleviate any unnecessary inconvenience, and inconsistencies.
The notice of violation was issued consistent with our policy and procedure, in accordance with § 145-70-005, our current temporary occupancy rules and regulations. In response to an inquiry by Mr. Steven Dela Cruz and Mr. William Villagomez, our Compliance Division initiated a formalize review on the account of A&M Corporation. The initial inquiry came in almost two months ago, on Sept. 29, 2022. The premises of A&M Corporation was visited on October 6, 2022, via an official notice that was sent to A&M last Sept. 23, 2022 — way ahead of the request of Mr. Dela Cruz and Mr. Villagomez. As a result of the inspection, our Compliance Division issued a response letter to Mr. Dela Cruz and Mr. Villagomez last week, Nov. 17, 2022. Subsequently, our Compliance Division, issued a notice of violation to A&M Corporation, for failure to secure a permission or concurrence from DPL, to sublease the public land that was leased to A&M Corporation. Our Compliance Division handles every review on our lessees or permittees, in accordance with our SOP and rules and regulations, objectively. The NOV is a standard format, and it normally will inform the lessee what violations our inspectors discover or uncover; the NOV to A&M Corporation detailed their findings and a notice to the lessee to respond or cure any violation. The current lease with A&M Corporation is a “new” lease, not a renewal or extension. Whatever terms and conditions prior – during the old lease, is not automatically applicable to the new lease.
The statement made by Lt. Governor Palacios that DPL’s conduct is unethical and politically charged is baseless and improper. The amount due is nominal in the amount of $207 but was included in the notice as a standard practice, along with the insurance policy requirements. It is the duty of every lessee to comply with the terms and conditions of the contract with DPL, and must furnish every required documentation to DPL, not to wait for DPL to review or inspect lessee first. However, the main violation of concern relates to the no sublease provision to wit:
Lease Agreement executed on March 23, 2022 expressly states that “DPL will not consider any assignment, sublease, or transfer during the initial five years of the lease term.”
On Nov. 20, 2021, eight months after the lease was signed, Lessee entered into a sublease agreement in the amount of $4,500 with South Pacific Lumber in violation of the March 23, 2022 Lease Agreement. Further, DPL staff reported that South Pacific Lumber has allowed Big Brother Auto Shop through a lease agreement (another violation) to enter and occupy DPL’s premises for the operation of a commercial auto repair shop.
These violations remain unresolved.
DPL remains committed to the enforcement of the lease agreement. The DPL has worked in good faith with Lt. Governor Palacios in all the transactions by allowing a Promissory Note in the amount of $65,000 (significant reduction) to resolve previous debt. We will continue to work in good faith to resolve the most recent violations.
Sixto K. Igisomar
