MPLA spent $1.3M in travel in 4 years

The defunct Marianas Public Lands Authority adopted policies that allowed former board members and employees to increase travel expenses by over $1 million, while revenues decreased by almost $10 million, according to a report by the Office of the Public Auditor.

The OPA report was based on a review of 195 travel authorizations with a total cost of about $1.2 million. This sample represents about 90 percent of MPLA’s $1.3 million travel-related costs from FY2001 to FY2005.

The report detailed travel abuses by former employees and board members of MPLA, which was abolished earlier this year. It highlighted policies and practices that permitted personnel to receive very generous travel benefits. It also offered suggestions on how government can cut travel spending.

OPA found that MPLA adopted business class accommodations as its travel policy. Of the 195 travel authorizations reviewed, 166 authorized business class accommodations, totaling about $683,089. OPA estimated that MPLA could have saved about $304,990 if it restricted business class accommodations and only allowed employees to travel by economy class.

MPLA also paid per diem for flight time and adopted per diem rates significantly higher than those allowed by CNMI travel policies. In September 2005, the MPLA board of directors increased per diem rates by $25 to $175, even for destinations where cost of board and lodging is generally low. For instance, MPLA’s per diem rate for the Philippines increased from $200 to $300 a day. The same $100-increase was made to per diem rate for Japan, where the cost of goods and services is much higher.

In addition, MPLA management allowed travelers to arrange their own travel itineraries. In some cases, travelers did not take the most direct route to their destination and this resulted in additional airfare and per diem.

MPLA provided travelers ground transportation allowance of $35 per day, even while CNMI travel policies allowed for only $15 a day. In addition, travelers were not required to itemize ground transportation expenses and support them with valid receipts. Consequently, travelers were allowed to get $35 daily and not have actually incurred any transportation expense.

MPLA travel policy did not require travelers to submit a detailed report when they came back from an official trip. OPA found that, in some instances, the “brief” trip report was merely a restatement in the past tense of the purpose stated on the travel authorization.

OPA also noted that the defunct agency did not control travel costs, despite its diminishing revenue. Total travel expenses increased by over $1 million during fiscal years 2001 to 2005, whereas total revenues decreased by almost $10 million.

It was also found that MPLA did not always comply with its adopted travel policies. Travel transactions showed that MPLA board members, officials, consultants, certain members of the Legislature, and employees failed to liquidate travel advances, timely submit travel vouchers, or file trip reports.

Furthermore, MPLA paid for personal trips incorporated within authorized travel. Some travelers were paid even though they did not adhere to the authorized travel itinerary and extended their trips to other destinations not listed in the travel authorization, or they submitted itineraries that included destinations for which no official MPLA business was conducted. MPLA also paid for expenses incurred during unofficial travel periods such as taxi fare, car rental and gasoline.

Board members adopted policy to allow themselves to be compensated for meetings other than official and open board meetings. According to MPLA policy, board members can be paid for attending administrative meetings requested by MPLA staff or a board member, as well as by non-personnel such as potential lessees, clients, vendors, contractors, and government officials.

Compensation rates are $150 for meetings less than four hours and $300 for meetings longer than four hours. Board members traveling off-island were paid for meetings, in addition to regular per diem and allowable travel expenses.

OPA identified seven instances where board members were paid compensation for meetings that appeared questionable. For example, a board member was paid $300 for a meeting from 3am to 8am with a Washington Representative’s Office staff member regarding pozzolan mining at the airport while awaiting his flight. Another case involved a board member who was paid $1,800 for meetings on June 6-12, 2004 in Honolulu. Her boarding pass showed she departed Honolulu on June 10, 2004. Another board member was paid $150 for “transport on the bus from Narita Airport to a Tokyo hotel.”

OPA said that the new Department of Public Lands continues to follow some of the former MPLA travel practices, specifically with regard to including flight time in calculating per diem and allowing travelers to arrange their own itineraries. OPA recommended that DPL stop doing these.

Acting Gov. Timothy P. Villagomez has instructed government attorneys to review the report and recommend legal actions that the government could take against the MPLA personnel involved.

OPA analyst manager Rosauro D. Zapanta, author of the report, had recommended that the report remain confidential, but the administration made it public on Friday. “These egregious MPLA travel abuses fully justify one of the administration’s first major actions upon taking office—Public Law 15-2, the law abolishing MPLA and creating the Department of Public Lands under the Executive Branch,” said press secretary Charles P. Reyes Jr.