FINANCIAL Services Director Bernadita Palacios of the Department of Finance on Friday appeared before the House Committee on Judiciary and Governmental Operations whose members asked her about Gov. Ralph DLG Torres’ travel documents.
Palacios appeared before the committee with her counsel, former Attorney General Matt Gregory.
Presiding over the hearing was the committee chair, Rep. Celina Babauta. Also present were the other committee members: Reps. Tina Sablan, Edwin Propst, Donald Manglona, Vicente Camacho, Richard Lizama and Vice Speaker Blas Jonathan Attao, the lone Republican on the panel.
Palacios has been with the Department of Finance for 30 years and the director of her division since 2012.
As director, she certifies the availability of funds for government-funded travels requested by public officials including Gov. Torres.
She told the committee that she signs a travel authorization for approval only if there are available funds.
But she said there were travel requests that never reached her desk and were approved by previous Finance secretaries and the current one.
Palacios said government employees or officials have to submit a trip report in 30 days, and failure to do so means automatic deduction from the individual’s paycheck. She said there is no exception to the rule, not even the governor.
She also said that it was not only the governor but there were other government officials who had also failed to submit their trip reports.
Business/first class travel
Palacios was shown a copy of the law, 1 CMC Section 7407, which prohibits business or first class travels by public officials.
She told the committee: “I wouldn’t sign off travel requests for business or first class.”
Palacios was shown a boarding pass and other documents indicating that the governor, along with first lady Diann T. Torres, traveled first class and business class.
The committee said that from January 2015 to July 2020, the governor made over 100 off-island trips that cost the CNMI government at least $490,000.
Looking at the copies of the boarding pass and other travel records, Palacios answered “yes” when asked by Rep. Tina Sablan if she, Palacios, based on the documents, would agree that the governor traveled first class or business class.
Political stops
Palacios was also shown documents pertaining to the governor’s trip to meet Office of Economic Adjustment Western Regional Director Gary Kuwabara and Alaska Aerospace’s Craig Campbell in Oregon and Alaska on June 16 to 24, 2018 respectively.
Palacios confirmed the authenticity of the travel voucher that indicated $16,250 in first-class airfare, as well $200 per diem and $288.97 for lodgings. For this travel, the governor was accompanied by the first lady, the committee said.
The committee also presented travel documents indicating that the governor was provided by a federal agency more than $4,000 for economy class air fare. But an amended travel authorization signed by the governor changed the air fare class to first class for which he received an additional $12,000, the committee said.
Palacios was also shown documents pertaining to the governor’s trip from Oregon to Boise, Idaho and then to Guam during the June 16-24, 2018 period.
The committee said the governor held a campaign rally in Boise while he was there.
Palacios confirmed that the signature on the travel authorization or TA was the governor’s. The TA stated that the travel was “in the best interest of the CNMI government.” According to the TA, the governor said he was to meet with then-Guam Gov. Eddie Calvo regarding “airlines issues.”
The governor’s stipend for this trip was $500, and he also received $599 for lodgings, the committee said.
Palacios said no trip report was submitted to her regarding the June 16-24, 2018 trip.
Palacios was also shown documents indicating that the governor spent two days at the Pacific Star Hotel on Guam from June 22 to 24, 2018.
Asked if the governor was compensated for his lodging expenses on Guam on the day of the Torres campaign rally there, Palacios said, “Yes, he was compensated.”
Asked if she was aware that the governor was planning to make a political campaign stop on Guam, Palacios said, “No.”
Asked if Finance policy allows government-funded trips to be extended to personal or political purposes, Palacios said, “No, it must be for public purpose.”
Financial Services Director Bernadita Palacios is sworn in during the House Judiciary and Governmental Operations hearing in the House chamber on Friday. Also in the picture is her legal counsel, former Attorney General Matt Gregory.
House Judiciary and Governmental Operations Committee chair Celina Babauta with the lone Republican on the panel, Vice Speaker Blas Jonathan Attao.
