Mendiola wants new probe on 2 Tinian directors’ pay

Tinian senator Joseph Mendiola has asked a Senate panel to investigate—again—the alleged “illegal” use of funds to pay two Tinian resident directors.

This came about even as the Senate Committee on Executive Appointments and Governmental Investigations submitted Friday a report on the “illegal termination” of Tinian resident directors Ernie U. Hofschneider and Norbert U. Hofschneider last February.

The report, which was adopted by the entire Senate during a session Friday, found that there is no specific law addressing the removal of a resident director. The panel recommended the introduction of such legislation.

“…The fundamental issue raised in the instant case is the absence of a statute that specifically addresses the removal of resident department director/head from office. Your committee concludes that, in keeping with its role as a lawmaking body, the Senate should adopt the committee’s recommendation to initiate proposed legislation to correct the deficiency in the Commonwealth’s statutes regarding the removal of resident department heads,” said the committee, which is chaired by Sen. Paterno S. Hocog.

Mendiola said, though, that the issue is about expenditure authority, noting that the payment of “separation fees” and “retroactive pay” to the two directors was made by the Department of Finance, not the Tinian mayor, whom he said has the authority over the matter.

He said the issuance of the payments might be in violation of the Planning and Budgeting Act and the budget law.

“My concern is not about the expiration or removal. My concern is the possible violation of the law. Whether the Tinian mayor has the authority not to renew their contracts without consulting with department heads is for the court to decide. But my issue is the expenditure authority. It’s very, very clear under the law the mayor has it. So I’d like to ask the EAGI to go back and investigate this matter,” said Mendiola.

Hocog’s panel report cited that three legal opinions had been issued separately by three attorneys general on the issue, all pointing to the fact that the mayor must have consulted with the Executive Branch department head on Saipan “before removing a Tinian resident department head, just as the same consultation is required to appoint a resident department head pursuant to the CNMI Constitution Article VI, section 3 (g).”

Borja did not renew the employment of the two resident directors last February.

By late March, the Department of Finance paid the two their annual leave, which, according to Mendiola, is an acceptance of the directors’ separation from office.

However, following an opinion by Attorney General Pamela Brown, which favors the reinstatement of the directors, the Department of Finance released the director’s retroactive pay.

Each director reportedly received a total of $5,000 in annual leave and retroactive pay.

In a recent interview, Finance Secretary Fermin M. Atalig disclosed that his office took back the annual leave payment in view of the two’s reinstatement, pursuant to the AGO opinion.

Brown said in her April 23 opinion that Borja “does not have the authority to restrict the employment [of the two directors]” without consulting executive department heads.