According to OPA, DPL’s predecessor, the defunct Marianas Public Lands Authority, was forced to write off close to $1 million in unpaid lease and royalties from a quarry firm due to bankruptcy.
But OPA said the dues from the quarries still in operation should be collected. OPA did not disclose the names of these quarries.
“The DPL secretary should take steps to collect the $4.69 million in underpayment of rentals (including interest) on land leases with eight quarries, and refer those lessees who refuse to pay to the Attorney General’s Office for legal action,” OPA said in a report.
“After billings were sent to eight quarry operators to collect $4,690,707.81 in underpaid rentals, Quarry Operator H paid $789.87 as full payment while $946,967.58 owed by Quarry Operator B was written off due to bankruptcy,” it added.
According to OPA, at least four of the eight quarry operators have settled their accounts but the rest haven’t.
At least one of those with debts owed DPL more than $2.7 million in underpaid lease rentals and interest.
“Based on DPL records, additional rentals and interest of $1,826,829.25 increased the receivable to $4,580,669.13 as of April 2006. Within 2001 to 2005, only $4,987.50 was paid by Quarry Operator A. Thus, if payments were applied against the old balance, the amount still to be recovered from the 1995 balance is still $2,748,852,” OPA reported.
According to the DPL chief financial officer, the account of Quarry Operator A will be forwarded to their in-house legal counsel to pursue legal action and obtain some collateral,” OPA said.
“Quarry Operator F — Amount recoverable per FY2000 audit is $152,570.13 as of FY1995. Based on MPLA records, additional rentals and interest of $708,407.31 increased the receivable to $860,977.44 as of May 2004,” it added.
