15 MVA jobs saved by new law

Acting Gov. Eloy S. Inos yesterday signed a law that saved the jobs of 15 employees at the Marianas Visitors Authority and spared 20 others from work hour reduction.

In a news briefing, Inos also addressed several issues faced by the CNMI, including the non-renewal of Aggreko International’s $6 million contract with the government, the proposed out-of-court mediation to solve the Retirement Fund woes, and federalization.

Inos signed House Bill 16-243 into Public Law 16-41, reprogramming $206,396.34 from MVA’s non-personnel appropriation to its personnel appropriation.

“MVA faced a shortfall in personnel funding such that some employees would have been laid off or faced reduced working hours of up to 48 hours bi-weekly beginning June 1, 2009,” Inos said.

This is the first law signed by Inos since he became acting governor when Gov. Benigno R. Fitial left for Washington, D.C. on Sunday to testify at a hearing on the implementation of Public Law 110-229 or the federalization law in the CNMI.

MVA managing director Perry Tenorio, who was present at the signing of the law yesterday at the Office of the Governor on Capital Hill, thanked the acting governor and the Legislature for approving the reprogramming of funds within MVA.

H.B. 16-243, introduced by Rep. Ray N. Yumul, said MVA’s personnel cost for Fiscal Year 2009 is about $1.16 million. However, Public Law 16-32 or the budget law appropriated $955,597 for MVA’s personnel costs, creating a shortfall of $206,396.34.

Inos said the notice of non-renewal of Aggreko’s contract is being prepared. The formal notice will be given in June, while the expiration of Aggreko’s contract is on Sept. 11.

CUC hired the U.K.-based Aggreko last year to provide 15 MW of temporary power to Saipan, which at the time was suffering from constant blackouts due to the poor condition of CUC’s power plant. Under the $6 million contract, CUC must make a monthly payment of $504,000 to Aggreko.

Inos also noted that the islandwide power outage on Wednesday, caused by external factors, was promptly addressed by the Commonwealth Utilities Corp.

The acting governor also said the administration is thankful to Guam Gov. Felix P. Camacho and the U.S. Department of Interior’s Office of Insular Affairs’ support in delaying the start of the transition to federal immigration system.

“We’re pleased with the visit of the [congressional] delegation in the future,” said Inos, referring to Guam Delegate Madeleine Bordallo’s announcement on May 19 during the oversight hearing.

Bordallo said members of the U.S. House Subcommittee on Insular Affairs, Oceans and Wildlife will be visiting the CNMI and Guam in August.

Inos also said out-of-court mediation is still the best way to address the issues concerning the Retirement Fund. He said the central government has been paying $200,000 to $300,000 in employer contribution to the Fund every payroll.

In response to Fund board chair Juan T. Guerrero’s statement, Inos said the administration is proposing the suspension of the ongoing court proceedings involving the pension system, and not withdrawing the lawsuit. The Retirement Fund sued the government for not remitting employer contributions to the pension system.