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House JGO chair eyes higher penalties for misuse of funds
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Posted on Aug 21 2011
Citing the increased need for accountability, the chairman of the House Committee on Judiciary and Governmental Operations wants to criminalize misuse of local funds, and require all recipients of funds through local appropriations to annually submit detailed financial reports to the Legislature and the Office of the Public Auditor.
Rep. Rafael Demapan (Cov-Saipan), in his House Bill 17-211, said the government’s revenue shortfalls make it more important to hold government agencies and personnel accountable for funds allotted to them.
Among other things, any person found guilty of improper expenditure of funds derived from local appropriation will be fined up to $10,000 or imprisoned for up to six months, or both.
Under the bill, the submission of detailed financial report should be no later than 60 days after the fiscal year in which the funds were expended.
The bill says the report shall include the purpose of the local appropriations received, the amount received, detailed list of expenditures, purpose of such expenditures, and the benefits derived from such appropriation.
Failure to submit such an annual report may prohibit future appropriations to such recipient, and the expenditure authority of such funds may be subject to a $100 penalty for each day the financial report is late.
