Members of the government’s credit union program may have to wait a little longer before they can retrieve their money following admission by the Inos administration that funding to pay these refunds remains unidentified.
Press secretary Angel Demapan, who is also the credit union’s board chairman, told Saipan Tribune that the Legislature needs to appropriate the funds for this unpaid obligation to members.
He promised that the administration will work to find the needed funds.
“We will continue working with the Legislature to seek appropriation to help pay out all our members who do not have outstanding loans with the credit union,” said Demapan.
As to how soon this may happen, Demapan remains uncertain. “There is no timeframe at this point,” he said.
Refunds of the members’ contributions were suspended since last year.
The Inos administration audited the organization early this year. It had never had any since 2008. The final draft of the independent report was recently completed and it showed that only over $60,000 is left in the union’s account.
In an earlier interview with Gov. Eloy S. Inos, he said he wants to tap the general fund to pay union members. A policy decision is also being planned for the union after it retires its obligations.
“Once finalized, we will have a better idea how to move forward. [But] definitely, we have to make a policy decision on what we want to do with the credit union,” Inos told Saipan Tribune. He also bared the union’s long list of delinquent borrowers.
According to Demapan, the union’s biggest challenge is the huge amount of delinquencies, totaling about $575,000.
Saipan Tribune learned that about 300 members have pending requests to withdraw their contributions from the union. The audit report recently conducted covers three fiscal years: 2009, 2010, and 2011.