NMC found giving selective raises

A handful of high-ranking officials in the Northern Marianas College had received hefty salary raise, while those under the “graded” category had to wait for available funds before they get pay increase due to the austerity measures of the Tenorio administration.

These were the findings of the House committee on Health, Education and Welfare at the resumption of the oversight hearing on the state college yesterday in what its chair Rep. Heinz Hofschneider considered a violation of existing regulations.

The hearing, the fourth in a series of investigation, presented hard evidence to bolster allegations of mismanagement and inconsistency in policy that have thrown NMC into deep financial trouble in the past few years.

“I am very close to (proving) mismanagement,” Hofschneider told the hearing attended by NMC and other government officials.

“For an institution of education, (NMC) is not educating itself. That’s what I am trying to make a point that in order for us to report before the full body and the people, we want to make sure that it is properly managed and promulgating its policy,” he added.

The committee grilled NMC personnel director Connie Ramon at yesterday’s inquiry, focusing on hiring policy, salary structure and administration of personnel benefits.

Hofschneider divulged several documents that so far showed inconsistencies to what officials had told the panel.

NMC legal counsel Jesus Borja, however, clarified the matter later in the afternoon session when he told Hofschneider that the pay plan under questioned by the panel was implemented just before the government austerity program.

In a meeting by the Board of Regents in December 1997, a pay plan was adopted that swelled the salary of high-ranking officials, including vice presidents and the president, of the college.

While Ramon testified the personnel office had not implemented any pay raise, at least four employees had received an increase that was rolled back later after Gov. Pedro P. Tenorio ordered cost-cutting program in all departments and agencies.

For instance, Vice President for administration Tee Abraham admitted receiving a raise when President Agnes M. McPhetres told her NMC would up her annual pay from $60,000 to $70,000 under the board-sanctioned compensation package.

Since the governor had imposed tight government spending, Abraham said the college later rolled back the increase after three pay periods.

NMC Chairman Manuel Sablan denied knowledge of the administrative action, saying the board had stopped implementation of the pay plan despite approving it in the meeting.

“It’s clear that someone has authorized to pay a handful of people and has decided to roll it back,” Hofschneider pointed out.

McPhetres, however, defended the action as the board’s approval did not state that it would not be implemented. She also said the college did not ask refunds from those employees who received the raise “because it’s administrative problem.”

Hofschneider also pointed out that there seems to be unfair treatment in the compensation plan given to NMC employees, adding that those in the ungraded positions get pay raise while the others can’t have due to lack of funds.

He cited the case of Allen Cameron, special assistant to the board who gets an annual salary of $45,000. While his position is ungraded, a graded job like budget officer David Atalig only receives close to $34,000.

According to Ramon, Cameron’s position is up to the board’s discretion while Atalig’s is governed by a salary schedule under the civil service regulations.

Testifying under oath, Ramon also vaguely responded to a charge by the oversight panel that he had approved a one-year retroactive raise for NMC Rota administrator Aniceto Mundo for $55,000 upon his retirement from office last December.

“I do have doubts right now and I will look into the records,” he said.

While the committee has yet to come up with conclusive statement on the findings, the oversight resumes on Monday where they expect to dig deeper into the personnel policy of the college.