OPA: CPA is not exempt from austerity measures, salary cap

Although the Commonwealth Ports Authority is an autonomous agency, it must still comply with any enabling law that requires austerity measures and obey any provisions on salary caps on employees and personnel, according to the Office of Public Auditor.

Public Auditor Michael Pai made the clarification after finding that the ports authority had paid seven individuals more than $50,000 per annum, in violation of the CNMI government salary cap.

The clarification was also in response to CPA executive director Efrain F. Camacho’s request for OPA to review its audit findings on the agency.

OPA had found that CPA in 2006 paid its deputy director, comptroller, administrative assistant, and attorney positions above the government salary ceiling of $50,000 per annum.

CPA had argued that, based on 2 CMC 2122 under the CPA’s powers and duties, the agency can employ agents, employees, or contracts for the services of a qualified executive director, specialist and experts and they may be exempted from the application of the Commonwealth Civil Service Act.

Pai said CPA is certainly entitled to pay attorneys and certified public accounts above the salary cap because this is now permitted by 1 CMC 8248. However, an administrative assistant cannot be paid in excess of $50,000 per year because it is not commensurate with the salaries paid to other administrative assistants in the government, he added.

Also, despite being an autonomous agency, CPA has to comply with austerity measures that the Legislature has explicitly made applicable to autonomous departments, OPA said.

Camacho said that, while the issue has been clarified with respect to the executive director and other specialists, it is still CPA’s opinion that the agency’s compliance with the austerity measures depend on the legislative language.

Camacho, in a letter to OPA dated April 23, said the Office of the Attorney General is the proper authority to interpret CNMI laws.

“The CPA being a public corporation, autonomous and self-sufficient, is not bound by austerity measures established by legislation for the CNMI government due to reduction in revenue collection by the government…instead, CPA is bound by austerity measures it may impose depending on its own financial position,” Camacho said.

In FY2007, Camacho said CPA continued for several months the austerity Fridays until its financial position improved.

“It is undisputed that CPA did not receive any financial assistance from the CNMI government to alleviate its situation in restoring the full work hours per pay period,” he said.

Saipan Tribune learned that CPA returned to full biweekly work hours when it was able to use its own funds.