SENATOR Paul A. Manglona prefiled on Tuesday Senate Resolution 23-2 “respectfully requesting” the U.S. Department of Treasury to investigate the CNMI government’s expenditures of the American Rescue Plan Act funds under the administration of former Gov. Ralph DLG Torres.
The resolution states that the Building Optimism, Opportunities, and Stability Together or BOOST program that the Torres administration launched on Aug. 18, 2022, aimed to support the viability of businesses and employment opportunities offered to residents of the CNMI to further diversify the local economy and increase tax revenue. The program was implemented in collaboration with the Office of the Governor, the CNMI Department of Finance, and the CNMI Department of Commerce and administered by the Bank of Saipan.
According to the resolution, in light of all the concerns surrounding the awarding and administration of BOOST program, the 22nd House of Representatives conducted a joint committee investigative hearing.
During the hearing, it was shared that increased efforts to promote the BOOST Program via print, online, and social events costing thousands of dollars coincided with the CNMI election dates, and it was discovered that approximately $17 million of ARPA funds were allocated for the BOOST program, with roughly $15 million committed to approximately 400 applicants out of 4,000 applications, the resolution stated.
It also came out in the joint fact-finding hearing that there was no standard operating procedure in place for the review or awarding process of the BOOST program, the resolution added.
The resolution stated that the U.S. Treasury adopted its interim final rule in May 2021 and the final rule on Jan. 6, 2022, regarding the implementation of eligible categorical use and restriction of State and Local Fiscal Recovery Funds. On Sept. 20, 2022, the U.S. Treasury published the Coronavirus State and Local Fiscal Recovery Funds Guidance on Recipient Compliance and Reporting Responsibilities to support compliance of the final rule as adopted.
Sen. Paul A. Manglona delivers his remarks during the 23rd Senate’s inaugural session on Monday. Also in photo are Senate Vice President Donald Manglona, left, and Sen. Dennis Mendiola.
