MPLT board divided on reprogrammed money for CUC

Members of the Marianas Public Lands Trust were divided yesterday whether or not to sue the Marianas Public Lands Authority for agreeing with Gov. Juan N. Babauta to reprogram $1 million for the Commonwealth Utilities Corp.

MPLT board chair Juan S. Torres said he does not favor suing a “sister” agency and spend a considerable amount in legal fees without getting something in return for MPLT.

Board member Herman R. Guerrero for his part said that pursuing legal action does not make sense since the money was used to prevent a disaster, a potential collapse of CUC’s power generating plants.

Guerrero moved to rescind an earlier letter sent to Babauta and MPLA demanding that the money be returned by Dec. 15 or be sued.

Trustee Edith Deleon Guerrero said she is “torn” since she recognizes the benefit derived from the reprogrammed money, yet the board has fiduciary duty to protect the money from public land leases.

Trustee Joseph San Nicolas fromTinian said that rather than quash the letter altogether, the board can extend the Dec. 15 deadline to January 2006 since “everybody is busy this time.”

MPLT legal counsel Vic Torres, meantime, reminded the trustees that the constitution strictly mandates that the public land lease money be spent only for homestead projects for NMI descents.

As such, the reprogramming of the money was in violation of the constitution.

Guerrero argued that the $1 million “has been sitting there idle” and that it was used as a matching fund from MPLA for CIP projects.

Besides, he said the Attorney General’s Office approved the reprogramming of funds.

Attorney Torres said the AGO is not the ultimate law of the land and added that it even lost in some of its cases.

Guerrero then said that MPLT should rather resolve the matter diplomatically with MPLA.

The chairman then said that he would rather let somebody else sue MPLA over the matter.

“It’s straining our resources. It leads us to nowhere. I’d rather leave it as it is. I want to stay out of that. MPLT won’t get anything out of that based on prior experiences,” said Torres.

Deleon Guerrero argued that the board has the duty to uphold the law.

“The constitution is very specific. To turn a blind eye [knowing it is not right] is not right,” she said.

“But it is for a good reason. It’s not turning a blind eye. Because of that, we still have electricity. It benefited the poor families. It benefited the local residents. It benefited the entire community,” argued Guerrero.

Deleon Guerrero then responded to the chairman’s statement that it would strain relations with MPLA.

“It’s not fighting with MPLA. We’re doing MPLA a big favor,” she said.

Torres argued back, “ to do a big favor to MPLA by spending our scarce resources?”
Torres said it is better to respect the AGO’s decision.

“After all, it benefited everybody. Whoever is aggrieved by that action, let that person sue the MPLA, not us suing the MPLA,” said Torres.

The board members went on further discussions until they decided to tackle the matter in an executive session.

Earlier, the MPLT, in a letter drafted by legal counsel Torres, asked the governor to return $1 million reprogrammed money to the Marianas Public Lands Authority by Dec. 15 this year or face litigation.

Babauta has been in control of the CUC since his May 19 state of emergency declaration on utilities.

“In the spirit of cooperation, we sincerely hope and remain optimistic that litigation will be unnecessary. This letter is merely to ensure that we protect the funds belonging rightfully and only to persons of NMI descent,” said the letter.

The letter to the governor was decided during the MPLT board’s last meeting, which was attended by Gov.-elect Benigno R. Fitial.

Fitial has been opposed to the governor’s reprogramming of funds to CUC.

Yesterday, the board chairman said sending the letter was “an error.”

He said it is not really the intent of the board to make that threatening letter.

Attorney Torres said he merely followed the instruction of the board.