Taxpayer’s lawsuit filed vs Hocog, Larson
Former Department of Public Lands secretary John DelRosario filed yesterday a taxpayer’s lawsuit against Lt. Gov. Victor B. Hocog and Department of Finance Secretary Larissa C. Larson over the alleged adoption of a Rota Legislative Delegation resolution without public notice that purportedly authorized payment of $400,000 to a private company owned by relatives of Hocog.
DelRosario, through counsel Jennifer Dockter, is suing Hocog and Larson for breach of fiduciary duties, and expenditure of public funds for an improper purpose.
In addition, DelRosario is suing Hocog for violation of the Open Government Act.
The plaintiff asked the Superior Court to issue a judgment declaring Rota Legislative Delegation Resolution 19-3 void ab initio (from the beginning), and all acts taken in furtherance of such resolution null and void.
DelRosario requested the court to issue an injunctive relief preventing Larson from taking any further action in furtherance of the illegal expenditure of public monies.
DelRosario asked the court to slap Hocog with civil penalties for violations of the Open Government Act. He requested the court to hold the defendants liable to pay him attorney’s fees and costs.
Rota Legislative Delegation Resolution 19-03 was approved “to authorize the Department of Finance to pay for fuel, lubrication, and other costs necessary for the maiden voyage of the vessel from Louisiana to its new home port in Rota, and to provide for the personnel and operational costs of the Office of the Mayor of Rota.”
The vessel, M/V Luta, a 150-foot long 500-ton cargo ship that originally came from Louisiana, reportedly can accommodate about 20 passengers and can carry up to 28 20-foot containers. The boat arrived on Rota last March 17 after leaving Panama.
Dockter stated in DelRosario’s complaint that on March 20, 2015, the Rota Legislative Delegation held its first regular session at the Rota Mayor’s conference room.
Four members of the Rota Legislative Delegation were present: Rep. Glenn L. Maratita (R-Rota) and Sens. Steve K. Mesngon (R-Rota), Teresita A. Santos (R-Rota), and Hocog.
Dockter said Rota Legislative Delegation Resolution 19-3 was voted on and adopted by then-Senate president Victor Hocog and the other three members of the Delegation.
Dockter said Hocog introduced Resolution 19-3, which was then adopted without discussion.
Dockter said Resolution 19-3 was not included on the agenda for the session on March 20, 2015.
She said no public notice was given that Resolution 19-3 would be taken up during the Rota Legislative Delegation session.
Resolution 19-3 calls for the Finance secretary to enter into an agreement with Luta Mermaid LLC for “repayment of [the $400,000] within a period of one year.”
Dockter said no contracts or agreements have ever been entered into between Luta Mermaid LLC and the Finance secretary.
Dockter said Luta Mermaid LLC has not entered any contracts of any kind with any government body or agency.
She said Luta Mermaid LLC is under no legal obligation to use the public lands for any public purpose.
“The process by which Luta Mermaid, LLC was chosen to receive $400,000 of public monies is unknown: there were no public proposals requested, no period for public comment, or public hearings held regarding Luta Mermaid, LLC,” the lawyer pointed out.
Dockter alleged that Luta Mermaid, LLC was not vetted for legitimacy or to ensure that it could provide the services it has been supposedly contracted to provide for the Commonwealth.
She said Luta Mermaid, LLC is a limited liability corporation whose shareholders are Abelina T. Mendiola, Deron T. Mendiola, and Fidel S. Mendiola III.
Dockter said all of Luta Mermaid LLC shareholders are relatives of Hocog.
Dockter noted that appropriations of public funds may be introduced only in the House of Representatives.
Dockter said the Government Ethics Act of 1992 provides that “A public official or public employee shall not use or attempt to use the public position to obtain private financial gain, contract, employment, license, or other personal or private advantage, direct on indirect, for the public official or public employee, [or] for a relative,” she said
Dockter said Hocog influenced the decision on Resolution 19-3 and voted it, which gave $400,000 to his relatives’ corporation.
The lawyer said violations of the Government Ethics Act, which resulted in $400,000 of public funds being given to the family members of Hocog, was a breach of Hocog’s fiduciary duties.
Dockter disclosed that a memorandum from the Rota Delegation was sent to secretary Larson on March 25, 2015, which stated that Resolution 19-3 was adopted by the Rota Legislative Delegation on March 20, 2015.
Dockter said just two days later, Larson cause $400,000 to be transferred from the CNMI General Fund Account to Luta Mermaid LLC’s bank account.
Dockter said Larson violated her fiduciary duties when she caused $400,000 to be given to a private company without any lawful or legal appropriations bill.
Good, so why does it take a private Cit. to bring this up and not the AG or other body?
Good question!
Ombi Cap! AG too is a part of it. Both Manibusan and Hocog in bed together for another issue/deal all together. That is why Manibushiat is looking the other way.
All jokes aside, I do love the idea of having that ship be the go between for the islands as a second choice rather that “Cape NO-AIR”. But still, the means used to acquire wreaks of foul smell and dirty dealings. And that has to stop. Nasty-nasty business and they should be compelled to answer for their actions. Man’Taimamalao magahit!
The ship that could provide a continuous service between all manned islands is welcome. It is pity that every single project (including so useful Luta ship) involves some scams and schemes. It seems that local politicians just do not know any other modus operandi.
Buenas naisur,
Maybe the contracts in the millions for the casino build up on Tinian is so tempting and the furtherance of keeping the wealth to the family is the answer to your MO.
Si Yu’us Ma’ase
AG MANIBUSAN had probably not done a good job providing proper legal advise to the gubernot. And that is why MANIBUSAN is equally to be blamed for the faulty legal sufficiency of the said legislative bill as normally routed to him before the gubernot signs it. Equally, the faulty legal summary began at the legislachi who crafted the fantastic bill in the first place and forced its way to the guillotine by the Sainitor benefactor. And of course, the other great Rota people’s gullible representatives in the legislachi. BIBA IT
While it is correct, pafao, that a bill to enact a Public Law is signed (or vetoed) by the governor, a legislative Resolution is not presented to the governor for signature.
House of Representatives please begin investigation and start looking into impeachment process
Like How it has been two months and the ship still does not service Rota.
g (United States) LUTA sailing ensign flag
Service Type (General use of the vessel) Freight Ship
Boat’s Length 146.5 ft
Boat’s Gross Tons 237.0
Boat’s Net Tons 161.0
Vessel Build Year 1981
Ship Builder n/r
Hull Shape (e.g. Monohull, Trimaran, Catamaran, Unknown) UNSPECIFIED
Propulsion Type Diesel Reduction
ta found in current database.
Vessel Name: LUTA USCG Doc. No.: 635750
Vessel Service: FREIGHT SHIP IMO Number: 8009935
Trade Indicator: Coastwise Unrestricted, Registry Call Sign: WCX6191
Hull Material: STEEL Hull Number: 69
Ship Builder: * Year Built: 1981
Length (ft.): 146.5
Hailing Port: ROTA MP Hull Depth (ft.): 12
Owner: LUTA MERMAID LLC
SINALPO VILLAGE I P O BOX 968
ROTA, MP 96951 Hull Breadth (ft.): 38
Gross Tonnage: 237
Net Tonnage: 161
Documentation Issuance Date: June 09, 2015 Documentation Expiration Date: June 30, 2016
Previous Vessel Names: SOUTHERN SEAHORSE
SOUTHERN SEAHORSE
MOBILE SEAHORSE
Previous Vessel Owners: SOUTHERN STATES OFFSHORE INC
SOUTHERN STATES OFFSHORE INC
sorry guys, but no where can I find that it is a 500 ton vessel
found in current database.
Vessel Name: LUTA USCG Doc. No.: 635750
Vessel Service: FREIGHT SHIP IMO Number: 8009935
Trade Indicator: Coastwise Unrestricted, Registry Call Sign: WCX6191
Hull Material: STEEL Hull Number: 69
Ship Builder: * Year Built: 1981
Length (ft.): 146.5
Hailing Port: ROTA MP Hull Depth (ft.): 12
Owner: LUTA MERMAID LLC
SINALPO VILLAGE I P O BOX 968
ROTA, MP 96951 Hull Breadth (ft.): 38
Gross Tonnage: 237
Net Tonnage: 161
Documentation Issuance Date: June 09, 2015 Documentation Expiration Date: June 30, 2016
Previous Vessel Names: SOUTHERN SEAHORSE
SOUTHERN SEAHORSE
MOBILE SEAHORSE
Previous Vessel Owners: SOUTHERN STATES OFFSHORE INC
SOUTHERN STATES OFFSHORE INC
think AG or OPA should contact the previous owner and find fact from fiction. Note the registration of the vessell expires 6/30/16
USCG Certificates of Documentation expire annually. No surprise there.
This should be straighten out with the Coast Guard as from the beginning, there was various contradicting spec on this vessel.
Possibly since this is a typical offshore supply vessel design built by the same ship yard to somewhat similar yet varying changes there is confusion on line specs. Don’t know. But you are correct this should be corrected, even the year built is in conflict.