Thirteen of these audit cases were referred to the Attorney General’s Office for legal action to recover monies improperly expended.
“According to these 13 audit reports, approximately $2.6 million is potentially recoverable. The AGO did not provide OPA an update on these referral cases during the OPA’s follow-up process, therefore, the status of these referrals remain unchanged from the previous reports as of Dec. 31, 2007,” said Public Auditor Michael Pai in OPA’s latest semi-annual report.
He said their office tracked a total of 49 audit recommendations as of June 30, 2008 and stressed that all “remained either open or unresolved.”
Of the figure, 32 are considered delinquent which means the concerned agency or department has not taken any action for the past 180 days to the audit recommendations.
“The number of delinquent recommendations increased by two [6 percent] from 30 in 2007 to 32 for the first six months of 2008. Agencies with delinquent recommendations as of June 30, 2008 included the Commonwealth Ports Authority, the Commonwealth Utilities Corp., the Department of Finance, the Department of Public Lands, the Department of Public Safety, the Marianas Visitors Authority, the Retirement Fund, Northern Marianas College and the Public School System,” said Pai who was confirmed late last year as the CNMI’s new public auditor.
Due to the statute of limitation, some cases had to be closed because the government failed to impose OPA’s recommendations.
These include the $40,131 that CPA improperly reimbursed its board members in 1995; the double payment and overpaid per diem allowances paid to the former executive director of the now defunct Marianas Public Lands Authority from 1992 to 1994; the $2,973 in questionable payments to former CUC board members in 2001, among other cases.
Pai said the government recovered $950,289 in terms of questionable public transaction but close to $4 million more must be collected.
“Of the $4,662,816 identified as potentially recoverable, $950,289 has been partially recovered leaving a balance of $3,712,527 still recoverable as of June 30, 2008,” he said.
These include rentals from eight quarry operations for six lease years totaling $3.7 million; nonresident worker application fees from two companies worth $512,410; $126,730 improper payments to two former CPA officials; $110,690 double payment of travel expenses and overpaid per diem to the former board chairman and Tinian and Rota board members of MPLA from 1992 to 1994; $56,462 misused funds by the former secretary of finance who was convicted in federal court; $15,079 overpayment to contractors of four professional services contracts; and $1,605 recovery of overpayments of per diem from three travelers.
