Govt spends an average of $11M for service contracts

Consulting services and other independent contracts of the government cornered an average of $11.8 million every fiscal year in the last eight years, with the highest outlay of $18 million posted in FY 1997 and the lowest, $8.2 million, in FY 2002.

Documents obtained by the Saipan Tribune showed that the CNMI government spent a total of $95 million in professional services from FY 1997 to FY 2004, broken down as follows:

* $18 million in FY 1997;
* $11.7 million in FY 1998;
* $11 million in FY 1999;
* $10 million in FY 2000;
* $15.6 million in FY 2001;
* $$8.2 million in FY 2002;
* $12 million in FY 2003; and
* $8.4 million in FY 2004.

In FY 2005, the Department of Finance listed $4.9 million in spending so far, broken down as follows: $3.6 million for the Saipan Executive Branch; $85,608 for the Judicial Branch; $329,334 for the Legislative Branch; $216,711 for the Rota Executive Branch, $374,890 for the Tinian Executive Branch, and $280,805 for the Washington Representative Office. These were funded using the General Fund.

The overall listing for FY 2005, including federal funds, showed $6.4 million in expenditures for service contracts.

Records showed that the bulk of the money, totaling $4.5 million, was incurred by the Department of Public Health for the CNMI Medical Referral Program, while some $1.9 million was spent by other offices.

The Governor’s Office spent $289,120 in professional services while other Executive Branch offices spent a total of $844,953.74.

The Legislature, meantime, incurred $544,837 in expenses for independent contracts: $36,749 for the Senate; $396,730 for the House of Representatives; and $111,358 for the Legislative Bureau.

The CNMI Youth Congress paid Alvin C. Fejeran Jr. $10,300 from Nov. 22, 2004 to September 2005.

In the Judiciary, the Law Revision Commission spent $32,142.84 for Stacey Deborah Conner from October 2004 to August 2005.

At the municipal level, the Mayor’s Office of the Northern Islands spent $55,286; Mayor of Saipan, $148,500; Municipal Council of Saipan, $13,300; Mayor of Tinian, $2,997; Rota Mayor and Rota Municipal Council, $3,230.

Minority leader Rep. Arnold I. Palacios, however, acknowledged only one consulting contract with BYT Consulting Services.

The documents indicated that Palacios spent a total of $69,000 for the following services: the Law Office of Edward C. A., $10,000, from November 2004 to September 2005 and BYT Consulting Services, $58,000, from November 2004 to September 2005.

“When you see that report, it appears like I’m being extravagant, which is not the case. I’m a simple guy. I observe simple living. I do cost-effective measures when running the office,” he said.

He said he only entered into a $14,000 contract with BYT from March to June this year for professional services. He said it was a joint contract with Rep. Ramon Tebuteb.

Tebuteb confirmed yesterday that he and Palacios have a contract with BYT. Tebuteb said the record may have shown up only under Palacios’ account because he transferred his monetary share to the latter’s account.

“I did that but we’re both getting the services of BYT,” he said.

The Department of Finance said that lawmakers can indeed arrange for procurement of contracts among themselves.

“What you see on the list is official,” said a Finance official yesterday.

Documents showed a total of seven separate contracts made for BYT under Palacios account: an $8,000 contract for November and December 2004; a $12,000 contract from January to March 2005; a $2,000 contract for March 2005; another $12,000 from April to June 2005; $6,000 from April to June 2005; $12,000 from July to September 2005; and $6,000 from July to September 2005.