Previous Story
AGO clarifies legal issue regarding MPLA reprogramming of $1M to CUC
|
Posted on Oct 09 2005
The Attorney General’s Office has dispelled doubts regarding the legality of the Marianas Public Lands Authority’s move to reprogram $1 million of its funds to the Commonwealth Utilities Corporation.
Assistant attorney general Alan Barak maintained that the MPLA board of directors’ transfer of $1 million of unused capital improvement project funds to the CUC emergency fund was allowable.
Barak cited the following reasons:
• The language of the appropriations acts for the utility-related use of the CIP funds anticipates the emergency use;
• MPLA may transfer property to government agencies for public purposes;
• MPLA may flexibly use proceeds for the accomplishment of its functions; and
• The governor has reprogrammed the funds to the CUC emergency fund.
Gov. Juan N. Babauta had requested MPLA to transfer the funds from its Bank of Guam account to the CUC emergency fuel contingency fund.
“This action is necessary to address critical fuel, generator rehabilitation and maintenance issues facing CUC and the people of the Commonwealth,” Babauta had told MPLA.
However, MPLA had second thoughts about approving the request due to legality issues.
Then acting MPLA chairman Manuel Villagomez, in a request for the AGO’s legal opinion, noted that MPLA funds derived from public land revenues were restricted for the benefit of [people of] NMI descent.”
Villagomez said the board was troubled by the application of its authority for using NMI descent funds for purposes such as utility operations.
In his legal opinion, Barak maintained that MPLA’s action to approve the governor’s request would benefit its beneficiaries as the funds would be used to maintain essential electricity services in the Commonwealth.
“A careful analysis of the MPLA, the MPLA board and the board’s duties, and the present disaster emergency demonstrates that the board of the MPLA has operated well within its fiduciary duties and responsibilities in agreeing to transfer its idle savings account funds to the use of the CUC’s emergency fuel contingency fund,” Barak said.
