Bill seeks to allow DPL use $1M settlement money for services
Rep. Blas Jonathan T. Attao (Ind-Saipan) has introduced a bill that will allow the Department of Public Lands to use $1 million in settlement money from private companies in order to “enhance” its services.
Attao stated in the House Bill 23-91 that his legislation would amend Section 711 of the CNMI Public Law 23-09 to allow DPL to use the $1 million allotted under Civil Case 16-004. That money is settlement funds from Kan Pacific Saipan Ltd. and Imperial Pacific International (CNMI) LLC over DPL’s lawsuit against Kan Pacific for breach of the land lease agreement.
Under Attao’s proposed legislation, an additional $1 million is appropriated to DPL, bringing the department’s government appropriation to a total of $5,960,881.
In addition to the 84 personnel set forth in Schedule A of CNMI Public Law 23-09 allotted to DPL, inclusive of the Saipan-based NOPs assigned to the Department of Lands and Natural Resources’ Division of Parks and Recreation pursuant to a memorandum of agreement between DPL and DLNR, DPL shall assume 50% personnel obligations associated with seven existing and current NOPs with the funds appropriated to DPL.
These seven NOPs shall consist of four NOPs for the Division of Parks and Recreation Rota and three NOPs for the Division of Parks and Recreation Tinian, provided further, these NOPs shall remain assigned to DLNR Division of Parks and Recreation.
In November 2015, DPL issued a request for proposal for properties in Marpi to the highest most beneficial bidder including properties still under lease to Kan Pacific.
During the RFP period, DPL had concerns that certain dealings between Kan Pacific and IPI were anticompetitive and detrimental to the outcome of the RFP.
On July 11, 2016, then-DPL Secretary Marianne Concepcion-Teregeyo informed then-Marianas Public Land Trust chair Martin B. Ada that their concerns were brought to the Superior Court and resulted in a settlement of $1 million from Kan Pacific and IPI for antitrust actions on May 9, 2016.
Concepcion-Teregeyo told Ada that DPL’s position on the nature of the settlement funds is that it was not derived from the management or disposition of public lands and using these funds for infrastructure would be a real benefit to DPL’s beneficiaries as it will allow them to build homes.
Concepcion-Teregeyo said they intend on requesting the Legislature to appropriate the $1 million to fund the infrastructure needs of homestead subdivisions.
She underscored the need for concurrence from MPLT on DPL’s position to avoid expending resources to obtain a definite answer from the court and potential liabilities.
On July 27, 2016, Ada declined Concepcion-Teregeyo’s request. He urged her to comply with the constitutional mandate as well as Public Law 15-2 and remit the $1 million to MPLT without further delay.
Ada said MPLT does not agree that the funds, whether they be from a settlement or a judgment, constitute CNMI revenues subject to legislative appropriation.
Blas Jonathan T. Attao
