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Babauta asked to reimburse $11M for land compensation
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Posted on Jun 13 2005
The House of Representatives has asked Gov. Juan N. Babauta to use federal funds, totaling $11 million, to replenish the Land Compensation account.
In House Joint Resolution 14-35, lawmakers want the governor to source the money from the 702 Capital Improvement Project funding for Fiscal Year 2006.
The government earlier took out $11 million from the $40-million land compensation bond to fund the construction of the adult prison facility in Susupe.
Rep. David Apatang, who authored the measure, said that land compensation money is now depleting.
“The Marianas Public Land Compensation account is now depleting and still needs to pay some claims,” said Apatang.
Public Law 13-17 initially authorized MPLA and the Commonwealth Development Authority to incur a $40-million public debt for the settlement of land compensation claims.
But the MPLA only received a total of some $28 million due to the deductions for the prison project funding and payment for interim financing amounting to $1.9 million. Other fees were also used to pay underwriter and bond issuance costs, including bond counsel fees, amounting to $415,309.
As of last month, MPLA said that only $13 million remained of the net amount. It said that it disbursed nearly $7 million of the funds to land compensation claimants as of Feb. 22, 2005.
Last May, it released $4.41 million to the heirs of Rita Kaipat, pursuant to MPLA’s recently signed settlement agreement with the estate.
Still another $3.45 million is being reserved for the payment of the controversial Malite Estate land compensation.
MPLA offers compensation to landowners whose private properties were acquired for public purposes: road construction, utility easements, wetlands, and other public infrastructure.
Compensation may be in the form of cash disbursements or land exchanges, depending on the landowner’s preference.
