Only $17.2M was declared
The CNMI government actually received $41.6 million in cover over tax payment in Fiscal Year 2008, but the Fitial administration declared only $17.2 million, according to two House leaders.
“The question is, what happened to the rest of the money? This might potentially be an abuse of appropriation of public funds,” House Speaker Arnold I. Palacios told Saipan Tribune.
“I'm not saying there is foul play and whether something illegal was conducted. But the Legislature has been kept in the dark,” added House Ways and Means Committee chair Rep. Ray Yumul.
Press secretary Charles Reyes Jr. explained yesterday that, according to law, the amount must be returned to the rebate trust account. “By law, these funds are not subject to appropriation. We received money that went into the rebate trust, according to 4 CMC section 17-14, the special rebate trust account,” Reyes said.
Yumul showed an audit report conducted by Deloitte and Touche for the year ending Sept. 30, 2008, which showed that the CNMI government received $41,611,260 in cover over funds.
Palacios said the issue needs some explanation as the Fitial administration has been saying all along that the $17.2 million that the Department of Finance received from the U.S. Treasury as final settlement on a longstanding cover-over issue saved the government from a deficit in FY 2008.
“Throughout that process, the chairman of Ways and Means.has been asking, 'Are you sure this is the total and you have to officially declare it,'” Palacios said.
“If the audit is saying or the record shows the cover over is $41 million for 2008 and only $17 million was declared, that's a lot of [difference],” the speaker said.
Palacios said House members have to discuss the issue with their legal counsel.
“In the midst of all this, during this fiscal year, the administration was trying to force the Legislature to choke or strangle the employees by declaring a 72-hour austerity.
With potentially $24 million somewhere, what the hell are we talking about here?” Palacios said.
Yumul said he double-checked the Deloitte report for FY 2007 and it showed no cover over funds received for that period.
Yumul said Gov. Beningo Fitial had informed the Legislature in December 2008 about receiving $17.2 million as a one-time payment of cover over taxes. However, the governor never updated the Legislature about any final payment of $41 million, he said, nor did then Finance Secretary Eloy Inos notify the Legislature about the actual payment received from the U.S. Treasury.
“How do you explain this claim of $17.2 million in the cover over but then the actual audit shows that $41 million came in. That's a big difference. Why did they choose to keep the information to themselves and it's only revealed through the audit?” Yumul said. (Saipantribune)
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