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Govt takes back annual pay for two directors
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Posted on Jun 07 2005
The Department of Finance took back the annual leave payments given to Tinian resident directors Norbert Hofschneider and Ernie Hofschneider following an opinion from the Attorney General’s Office that their termination was “illegal.”
“We took it back because they’re still considered employees, based on the AGO opinion. They can’t have it if they are still in office,” said Finance Secretary Fermin M. Atalig.
The two directors reportedly received some $3,500 each for their annual leave.
Atalig said that such payment formed part of the $5,000 that each of them received a few months back.
“It [$5,000] is the combined amount for annual leave and retroactive pay,” said Atalig.
The Office of the Public Auditor is looking into alleged irregularities surrounding the issuance of payments to the two directors. Tinian senator Joseph M. Mendiola said the OPA is probing the issue.
Senators earlier agreed to conduct an investigation on the issue.
“I won’t stop until this matter is resolved,” said Mendiola, chair of the Senate Committee on Fiscal Affairs.
The senator said it is highly improper to give the two directors their annual leave payment and retroactive salary at the same time.
“The lump sum payment for annual leave recognized that they’ve separated from the office, yet they were also given retroactive salary afterwards,” said Mendiola.
The two directors lost their employment when Tinian Mayor Francisco M. Borja decided not to renew their contracts effective February this year. This resulted in the central government giving them their lump sum annual leave payment.
The two directors, however, appealed their case before the AGO, which then ruled in favor of them.
The AGO instructed Finance “to reimburse” the two directors “for back pay from the date their contracts expired to the present pay period.”
Mendiola said this action may be in violation of the Planning and Budgeting Act and the budget law.
