THE Department of Public Lands has determined that certain transactions may have violated its constitutional mandate, according to DPL’s financial statements and an independent auditor’s report for fiscal years 2019 and 2020.
The auditor’s report completed by Deloitte & Touche LLC noted that the CNMI Constitution requires that all revenues received by DPL, except the amount necessary for reasonable administrative expenses, must be transferred to the Marianas Public Land Trust.
According to the report, “The effects of potential noncompliance with the CNMI Constitution could not be determined by DPL management and are not reflected in the accompanying financial statements.”
In an interview, former MPLT Chairman Pedro “Paduna” Guerrero said he brought up concerns about DPL’s failure to transfer the “correct” amount of revenue to MPLT.
He said he also recommended to take DPL to court. His six-year term on MPLT expired in January 2022.
Receivables
DPL’s receivables went down to $720,032 in fiscal year 2020 from $1 million in FY 2019, the audit report stated.
During the fiscal years that ended on Sept. 30, 2014, 2013, 2012, 2011 and 2010, “DPL directly disbursed $6,324; $38,307; $690,898; $17,157; and $1,249,460 respectively to the NMI Retirement Fund. The disbursements may have duplicated payments made by the CNMI, but as reimbursement from the NMIRF is uncertain DPL has not recorded the amounts receivables,” the audit report stated.
As for the lease and permit income that DPL earned for the use of public lands, it amounted to $5,326,752 and $6,203,349 in the fiscal years that ended on Sept. 30, 2020 and 2019, the report added.
DPL Secretary Sixto Igisomar, in a memorandum to Gov. Ralph DLG Torres, said the department “continues to make tremendous progress in addressing audit issues and was once again given an unqualified financial audit, as well as an unqualified opinion for the fifth time in a row.”
Igisomar added, “This is yet another remarkable milestone for DPL as well as a true testament of your administration’s and DPL’s commitment to working diligently, upholding accountability and ensuring transparency.”
