The money is supposed to pay out retroactive salary increases to Tinian municipal employees and to cover other obligations by the municipal government to the Tinian Dynasty and the island’s scholarship program.
“I am deeply concerned about whether or not MPLT has honored its fiduciary responsibilities in reviewing and approving the Tinian mayor’s request for a loan,” said Sablan, Ind.-Saipan.
“I am also extremely concerned that this loan may violate Article X of the CNMI Constitution, and specifically the prohibition in Section 3 on incurring public debt without 2/3 of the affirmative vote of the members in each house of the Legislature, and the prohibition in Section 4 on borrowing for government operations,” she added.
She asked MPLT why its actions and the Tinian Mayor’s Office “should not trigger taxpayer lawsuits against the government, including lawsuits against the MPLT board members for breaches of fiduciary duty.”
Sablan wants to see the following:
1) A copy of the loan application submitted by the Tinian Mayor’s Office and approved by MPLT, including the terms of repayment if any;
2) A copy of any minutes, notes, tape recordings, or other records documenting the MPLT meeting at which this loan was approved;
3) A copy of any financial records from the Tinian municipal government, including any audit reports or detailed records of financial expenditures, that were reviewed by the MPLT prior to approving this loan; and
4) A copy of any minutes, notes, tape recordings, or other records documenting any public hearing that the MPLT may have conducted prior to approving this loan.
Senate Floor Leader Jude U. Hofschneider, for his part, said the Tinian delegation should make sure that the newly enacted local law authorizing the loan should serve its intended purposes.
Hofschneider, R-Tinian, said the delegation should see to it that Tinian employees finally receive their long overdue pay raise totaling $520,000.
He noted that the money from MPLT is also supposed to allot $277,000 for the Tinian municipal scholarship and $201,700 as payment to the Tinian Dynasty Hotel and Casino for its services to the municipal government during the 60th commemoration anniversary of World War II.
“If the amount loaned is in excess of the three expressed purposes, the balance of the loan proceeds should be used for top priority needs and not be wasted on unnecessary travels and for the noni and abalone projects,” the senator told the chairman of the Tinian delegation, Sen. Joseph M. Mendiola, Covenant-Tinian.
