THE Marianas Public Land Trust, through its attorney, Robert T. Torres, has sent a demand letter to the Department of Public Lands, saying that DPL has until June 12, 2021 to remit a total of $5,620,461 to MPLT.
Torres said if DPL fails to remit the amount on or before that date, “MPLT shall undertake all measures to compel DPL’s compliance with constitutional and statutory mandates including responsibilities and that of its secretary as co-trustee/fiduciary of public land lease funds.”
Based on the audit report conducted by Deloitte Touche, MPLT said DPL “improperly segregated and allocated the said amount for itself without lawful authority.”
MPLT said, “the improper allocation of the amount” is broken down as follows:
• $516,596 for homestead projects.
• $4,103,865 reserved for the ensuing fiscal year 2020 budget.
• $1,000,000 in reserve funds from DPL’s settlement agreement.
Article XI of the CNMI Constitution requires DPL to remit public land revenues to MPLT at the end of each fiscal year, except the amount necessary to meet “reasonable expenses necessary for the accomplishment of its functions.” These reasonable expenses include administrative and management expenses, land surveying, and homestead development.
According to MPLT, “DPL has continued the improper and unlawful practice of allocating funds for homestead development which has been determined as without authority. The Legislature appropriates funds (including those remitted by MPLT from interest income) for capital improvement projects. Similarly, DPL has continued its efforts to ‘reserve for next year’ funds for which it has no authority either by the Constitution or its enabling act to do. Lastly, as a result of a settlement with the Mariana Resort from a public land lease in the amount of $1,000,000, DPL has continued to withhold these funds unlawfully.”
The MPLT counsel likewise said that trustees “have made continuous demands upon DPL to heed its fiduciary obligations as a co-trustee and remit the excess funds to MPLT for investment.”
However, “MPLT’s entreaties have been met with resistance and avoidance in various ways through the years. DPL only remits when there is disclosure of the reserve funds or those reserve funds are now needed for an exigent need by the CNMI central government.”
Torres added, “In the trustees’ view, such approach is counter-productive to agencies charged with the generation of public land revenue with DPL and the investment and creation of revenue for the general funds with MPLT.”
He added, “If DPL were to remit the amount being demanded, as well as the other funds previously demanded such as the questionable withholding of the $1 million settlement fees, MPLT would have been able to generate substantial interest income for the general fund.”
MPLT, the lawyer said, will seek the assistance of the Office of Attorney General to compel DPL to remit the amount, as well as request the Office of Public Auditor to undertake its investigation as to why DPL continues “to violate its fiduciary duty and constitutional obligation.”
Variety was unable to get a comment from DPL.
