She said that contrary to the report, Gov. Benigno R. Fitial refused to accept the federal funds because he learned that it required accountability on his part.
In his report to the Legislature, Labor Secretary Gil M. San Nicolas said at the end of 2007, federal funds were withheld because the federal ombudsman sought control over certain functions of the Department of Labor through the exercise of financial control over grant funds.
“How disingenuous!” Doromal said. “The governor refused to accept the funds because he chooses to act like a spoiled brat when he learned that fund restrictions required accountability. Any federal grant has restrictions and requires strict accountability and compliance as they should.”
Doromal quoted Fitial’s letter dated Nov. 7 telling then-Secretary of the Interior Dirk Kempthorne that he had declined the $420,000 grant because of unnecessary and unreasonable conditions which then-Deputy Assistant Interior Secretary David B. Cohen and then-Federal Ombudsman Jim Benedetto supposedly to impose on the CNMI.
Under the new terms of the federal grant, Doromal said the CNMI government must consult with Interior’s Office of Insular Affairs before filling any position in the Department of Labor or the Attorney General’s Office.
Any positions funded by the federal funds should be exempted from travel and hiring freezes, local government austerity holidays, and other cost-saving measures, Doromal said.
If the CNMI government terminates any federally funded position or employee, it will lose the remaining funds for that position, she added.
Doromal said Cohen had clarified that there was no reason the CNMI government should forfeit the $420,000 grant and the possible addition of $500,000 because the Office of Insular Affairs was merely taking steps to ensure that U.S. taxpayer funds are properly spent.
“Our CNMI initiative grants are not and never have been a blank check to the CNMI government. These are U.S. taxpayer funds, and my office has a duty to ensure that the funds are allocated effectively to address important needs in labor and immigration,” Doromal quoted Cohen as saying.
Doromal said there was no demand from the ombudsman to take control over some functions of Labor.
She said OIA “should absolutely not restore funds unless the CNMI government agrees to the compliance and accountability terms of the grant.”
San Nicolas said the governor rejected the ombudsman’s demands and substituted commonwealth funding for part of the withheld federal funds.
These federal funds have not yet been restored, but Labor has a pending grant application, he added.
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