Housing allowance for Rasa ordered cut

Tinian Mayor Francisco M. Borja yesterday ordered Tinian Casino Gaming Control Commission not to release money for the housing allowance of embattled TCGCC consultant Oscar C. Rasa, a move that might draw the municipal leader into a legal battle with the former House speaker.

Rasa vowed to challenge in court Borja’s order if he fails to receive the payment, saying it would constitute a violation of his four-year consultancy contract entered into with the commission in 1996.

In a memorandum to Kathy D. Manglona, fiscal officer of the commission, Borja said he disapproved the request for payment of housing allowance because he considered Rasa’s contract invalid.

“It is my position, based upon the advice of my Counsel, that Mr. Rasa’s contract with TCGCC is without legal effect,” Borja said, “If, in the unlikely event that Mr. Rasa’s contract is determined to be valid, it is my further position that he has breached the contract on several grounds,” he added without elaborating.

According to Borja, authorizing additional payments would hold the municipal government and the commission to further liability in light of the ongoing investigation by the Office of the Public Auditor into the $750,000 in expenditures allegedly incurred by Rasa since he was hired as consultant.

Rasa, however, said he would sue to municipal government and TCGCC if they failed to comply with the contract, which provides for housing allowance amounting $2,400 for every three months of services completed. Under the $100,000 per year contract ending on October 2000, Rasa should also be issued a service vehicle.

The former House speaker said it was obvious that Borja’s actions were politically-motivated, but he declined to elaborate.

“It’s a breach of contract,” Rasa said in a phone interview. “I’ll go to court and sue them because they are raising issues emanating from things that are not related to my duties in the commission.”

He maintained his contract is valid and that only the members of the commission can terminate his contract by a majority vote.

“The gaming act does not provide the mayor the authority to determine what should be paid and what should not be paid and it’s only the commission that can remove me if majority of the members decide so.”