The Judiciary's average monthly collections have significantly dropped in the last few years and will result in its $13.8 million loan to the Retirement Fund going in default by next year.
Chief Justice Miguel S. Demapan and Presiding Judge Robert C. Naraja informed the Legislature that, as of July 15, 2009, the outstanding balance on the original loan of $13,815,337 is $7,092,884. The money was used to build the Judicial Complex in Susupe.
Demapan and Naraja gave the update on the loan's status in the Judiciary's budget request to House Committee on Ways and Means chair Rep. Rep. Ray N. Yumul (R-Saipan).
The Judicial Building Financing Act of 1994 allowed the CNMI government to secure a loan from the NMI Retirement Fund in order to build the Judicial Complex (Guma Hustisia). The maturity date of the loan is Aug. 14, 2015.
Demapan and Naraja disclosed that revenues generated by the Judiciary-used as the primary source for repayment of this loan pursuant to Public Law 7-27-have dramatically declined in the last several years.
They said the Judiciary's average monthly collections have decreased from $103,902 in FY 2007 to $69,126 in FY 2009 to date.
As a result, Demapan and Naraja said, the Fund has calculated that the loan will be in default beginning May 2010.
They pointed out that the Judicial Building Financing Act of 1994 guarantees repayment from the general fund if the Legislature does not make necessary appropriations.
“We seek to work with the Legislature and the Executive Branch to find a practical solution to this issue,” Demapan and Naraja added.
The construction of the Judicial Complex began in 1995. It was completed in May 1998.
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