PACIFIC ISLANDS REPORT

Pacific Islands Development Program/East-West Center
With Support From Center for Pacific Islands Studies/University of Hawai‘i

Marianas Variety

SAIPAN, CNMI (Feb. 3) – At least two independent agencies are going to be folded into the executive branch, according to the Fitial administration. Poor management is the basis offered for these moves, and seems wholly justified in the cases of the Marianas Public Lands Authority and the Commonwealth Utilities Corp. Simply pulling these agencies under one tent does not address management problems, however. It does signal that this administration would like to handle these operations directly.

What changes will materialize has not yet been fully explained to the general public. Moreover, government deliberations on these matters have not been disclosed publicly. Releasing the transition reports could reveal what problems were prevalent and what actions were recommended to avert similar problems from taking hold. But, so far, the administration has not shown a willingness to provide a full disclosure.

Specifics are important. Poor management practices, questionable procurement and too much political interference in the day-to-day business are some of the observations that arise whenever the subject of independent agencies comes up. But are there cost savings to be realized in these reorganizations? And if so, what might they be?

Recently, the administration has said it expects to make cuts in the neighborhood of 10 percent. This figure is awfully small given the information that has trickled out over the last two years or so. More information is needed from the administration to determine if this will do anything to help the government meet the financial shortfalls.

Some explanations for some problems have been offered. The public is informed, for example, that the fuel surcharge is necessary after all, necessitating another state of emergency for the Commonwealth Utilities Corp., and reversing the Babauta administration’s decision to end the emergency supposedly because the crisis had passed. According to the Fitial administration, US$2 million is required from central government coffers each month to pay for the cost of fuel — the same figure disclosed by former Governor Babauta. This may explain why the Legislature gave the new governor 100 percent reprogramming authority — or does it?

This administration is wasting no time trying to re-direct the activities of wayward independent agencies and securing the legal approvals to direct government revenues as it deems appropriate. This is good. It shows — even if it doesn’t prove — that the Fitial administration understands it is working with a financial shortfall and will secure a legal basis for all its actions. No more over the ceiling salaries. This is also good.

But the public needs more information about these proposed actions. How will folding the Commonwealth Utilities Corp. into the Department of Public Works improve public service or accountability? What savings will occur with this move, and what level of efficiency will be achieved? How long will this reorganization take, what other personnel decisions will be made, and what of the qualifications and experience of this proposed super-agency? One point Babauta failed to grasp — until the tail end of his administration — is that it is best to fully disclose and explain government actions. His successor, however, appears to be drawing lessons from the former governor’s mistakes. Which is also good.

But there are other adjustments the new administration needs to make. It is generous, for example, of Governor Fitial to pay for his own airfare while on government business, but this isn’t as good as it sounds. If the governor is on official business, then the government should pay for his trip. If he is on a personal trip, then he ought to pay for the trip himself. Blurring the lines between official and personal travel, the financial arrangements and fiduciary responsibilities that attach to one and not the other is not a good thing, even if he does want to save the government some money.

Marianas Variety: www.mvariety.com

Copyright © 2006 Marianas Variety. All Rights Reserved