Outgoing CPA acting Executive Director Lee Cabrera said the Office of the Public Auditor disclosed the authority’s violations of the law in a 1996 report, but this has not been addressed — until now.
In May, the Fitial administration took over CPA, citing its failure to address its bond indenture problem.
The governor’s decision was followed by a memorandum imposing the across-the-board salary cap of $50,000 on all CPA employees and mandating per diems of officials and board members.
Cabrera, who will retire end of this month, said he “very much welcome” the administration’s action as he believes that it’s long overdue.
“Twelve years ago, in 1996, this concern regarding the salary cap and per diem was brought up to CPA’s attention by OPA but it was never fixed,” Cabrera told Variety. It’s never too late to comply with the law, he added.
Past officials and members were provided per diems and wages higher than what the law provides, he said.
On Jan. 30, 2006, CPA proposed a new rate schedule for its employees.
The authority said that higher per diem rates were needed because current rates were no longer realistic and the rates conforming to those established by the Federal Aviation Administration “more equitably cover costs” incurred by CPA employees during off-island travels.
A CPA employee traveling within the CNMI receives a per diem allowance of $175, while a central government employee gets $85.
The agency’s per diem rate for Guam trips was $200 compared to the government’s $175.
For trips to Palau, the Marshall Islands and the Federated States of Micronesia, CPA’s rate was $200 a day while the central government paid $150.
Ports employees received $300 a day when traveling to Japan and other Asian countries.
There were five department heads of CPA who were affected by the salary cap imposed by the governor.
One has opted to retire, but the other four will remain with CPA, Cabrera said.
There have been resignations, Cabrera said, but these were individuals who wanted to relocate off-island.
He said CPA’s bond trustee, the Bank of Guam, appreciates the actions being taken by the governor.
“I am pretty sure that the bond trustee appreciates that CPA is complying now with the law because this ensures proper operation at the agency,” Cabrera said.
.
