THE Marianas Public Lands Authority may initiate legal action to recover its $8 million deposit with Bank of Saipan, according to Commissioner Bertha C. Leon Guerrero.
“The board has instructed our legal counsel to explore this matter,” Guerrero said.
Variety also learned that MPLA Board Chairman Tomas Aldan is on leave following his arrest for allegedly trying to defraud Bank of Saipan.
Aldan was the bank’s former chairman and chief executive officer. Vice Chairwoman Annie Demapan Castro is currently the acting head of the MPLA board, Guerrero said.
MPLA is not providing any legal assistance to Aldan, its officials said.
Meanwhile, one of Aldan’s co-defendants has pleaded not guilty to the charges that he conspired to defraud Bank of Saipan of over $6.6 million.
During Thursday’s hearing, Michael T. Wilson, who appeared with attorney Loren Sutton, waived reading of the indictment.
Wilson, who was flown here last week from Texas, pleaded not guilty to the indictment charging him with conspiracy to commit wire fraud and three counts of wire fraud.
U.S. District Court Judge Alex R. Munson allowed Wilson to post a $500,000 unsecured bond or $250,000 in cash or property.
As of March 31, 2002, Bank of Saipan had $48 million in deposits. Nearly $16 million belonged to CNMI government accounts. Of this number, half came from MPLA.
Guerrero said MPLA will cooperate with the authorities “to further assess the situation.”
“Until the full assessment of the bank is made, including the status of MPLA’s deposits, legal action, if any, cannot be determined,” she said.
No current homestead projects will be affected by the bank scandal, she said.
“Future projects may be affected, but it is too early to tell,” she added.
