Finance readies regulations for ‘public purpose’ reimbursement

Amid growing conflict on expenditure of public funds, the Department of Finance will soon promulgate guidelines in efforts to compel members of the Legislature and other government officials to stick with the provisions of a new law.

Finance Sec. Lucy DLG Nielsen said on Friday her department is set to complete drafting of the set of rules and regulations, which will implement the recently-signed law defining the scope of “public purpose.”

She is expected to meet with the House Ways and Means Committee within the next few days to discuss problems arising from alleged refusal by DOF to release funds from the legislative accounts.

“We are going to discuss (the meaning of) ‘public purpose’ just to come to an understanding as what we consider is a public purpose and what they consider,” Nielsen told in an interview.

The new policy spelled out under Public Law 11-84 intends to clear ambiguities of a constitutional provision regarding use of government funds as well as settle dispute between DOF and the Legislature. The two have clashed in the past over items which legislators can reimburse under each respective accounts.

According to Nielsen, her department will finalize in the next few weeks the draft of the implementing guidelines, which will then be handed over to Gov. Pedro P. Tenorio for his approval.

“We hope to get it out as soon as we can,” she explained. “It will probably take longer because everytime there is a comment submitted, we have to entertain them. I don’t know how long it’s going to take before it gets implemented.”

Administration officials hope the forthcoming set of rules may end recent bickering with the Legislature over expenditures of the dwindling cash resources of the Commonwealth, a problem which has evolved into an issue of separation of powers in the government.

While the conflict has been evident even during previous administrations, it has become a serious concern recently as the government continues to suffer financial difficulties due to the economic slowdown.

Early this month, the House of Representatives lambasted finance officials for requiring members to present documents justifying their off-island travels, including trips to Washington D.C. for the scheduled congressional hearings.

Lawmakers maintained it is not a DOF’s duty to inquire into the purpose of the trips, but to ensure that funds for each of their account are available to them.

Tenorio has supported the finance department on the issue, noting that the Legislature must comply with the paper requirements before a member can draw down money from his account.