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MPLT plans to secure liability insurance
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Posted on Oct 27 2005
The Marianas Public Lands Trust board is currently working on obtaining liability insurance to protect its trustees from possible lawsuits.
Board members said the risks associated with being a trustee would have to be evaluated to determine the insurance coverage. The board said it may be between $1 million to $5 million.
Board chair Juan S. Torres said he believes that the Marianas Public Lands Authority is insured for $1 million.
He said he thinks that MPLT faces “more risks” than MPLA.
Trustee Herman R. Guerrero, the acting chairman during the meeting, said the liability insurance would protect them from legal actions.
No lawsuits have been filed yet against any trustee.
Recently, though, MPLT received an unsigned complaint against a trustee.
A trustee is personally and officially liable for his or her action, MPLT said.
MPLT invests monies received from NMI-descent land leases. Most investments are in U.S. equity and bond markets. A portion of it is invested locally in housing and educational loans.
The trust was first created out of Section 803(e) of the Covenant, requiring that a trust account be made for the initial $2 million received from the military lease of Tanapag Harbor. It was required to benefit and provide the development and maintenance of American Memorial Park.
MPLT was later created in the CNMI Constitution, specifically to receive and invest funds collected by MPLA and its predecessor, Marianas Public Lands Corp., from the lease of CNMI descent lands to the military.
These included $17.5 million from Tinian; $2 million from Saipan; and $20,000 from Farallon de Mendinilla.
MPLT reported a huge growth of over 150 percent in its total investment—from a starting amount of $26 million to $66 million—as of May 2005.
It said it received $24 million in original amount for General Fund and $2 million for Park Fund from MPLC.
This year, the General Fund has increased to $59 million while the Park Fund has risen to $7.4 million, posting a principal growth of 2.4 and 3.68 percent, respectively.
This even as MPLT said that it has not received remittance from MPLA in the past 13 years or so. This case is pending litigation.
