IN LETTER TO KEMPTHORNE

Local st-Monday, November 12, 2007 By Agnes E. DonatoReporter

Gov. Benigno R. Fitial has brought to the attention of Interior Secretary Dirk Kempthorne his feud with federal officials over the CNMI labor and immigration initiative grants. In a letter dated Nov. 7, Fitial told Kempthorne that he had declined the $420,000 grant because of unnecessary and unreasonable conditions which Deputy Assistant Secretary David B. Cohen and Federal Ombudsman Jim Benedetto seek to impose on the CNMI. He asked Kempthorne to stop what he claims was an attempt by Cohen and Benedetto at micromanaging local government affairs.“It is unprecedented, unnecessary, and unproductive. We see no reason why the initiative grant of federal funds cannot be made on the very same basis that it has been in the past,” Fitial said.Under the new terms of the federal grant, the CNMI government must consult with OIA officials before filling any position at the Department of Labor and at the Office of the Attorney General. Positions funded by the funds should be exempt from travel and hiring freezes, local government austerity holidays, and other cost-saving measures. If the CNMI government terminates any federally funded position or employee, it could lose the remaining funds for that position.Furthermore, personnel funding will depend on the AGO and DOL's compliance with their respective memoranda of agreement with the Federal Ombudsman's Office.“Mr. Cohen and Mr. Benedetto seek to impose these conditions simply because they have the power to do so. The word 'restraint' is simply not in their vocabularies,” Fitial said.The governor outlined his reasons for opposing the new conditions. He said the provision to exempt federally funded positions from hiring and travel freezes was “a cavalier dismissal of our cost-cutting measures,” and could be damaging to employee morale.Fitial said the consultation requirement for personnel hiring would “authorize OIA officials to decide what positions are 'critical' and which are not, and thereby justify the withholding of funds at any time Cohen or Benedetto seeks to enforce their definition of 'critical.””He added that the administration had done well in filling positions at Labor and Immigration with effective, responsible people. There is no reason OIA should demand to have the final say on hiring now.He also said the provision that prohibits termination of grant-funded employees was “just silly. As pointed above, we have made good personnel decisions and this overreaching by Mr. Cohen and Mr. Benedetto is unjustified and insulting.”As for the MOA provisions, Fitial said they would only serve to enhance Benedetto's limited authority from the U.S. Congress.Cohen previously said there is no reason the CNMI government should forfeit the $420,000 grant, as well as possible addition of $500,000, simply because the U.S. Office of Insular Affairs is taking steps to ensure that U.S. taxpayer funds are properly spent.“Our CNMI Initiative grants are not and never have been a blank check to the CNMI government. These are U.S. taxpayer funds, and my office has a duty to ensure that the funds are allocated effectively to address important needs in labor and immigration,” Cohen said. Benedetto has also explained the conditions were intended “to ensure that critical needs personnel are on the job, addressing the issues the Labor, Immigration & Law Enforcement Initiative was intended to address, without being affected by hiring freezes, travel bans, or austerity holidays.He added that the consultation provision may be satisfied by the CNMI's providing a resume for the person hired. The provision is not intended to give OIA veto power over hiring decisions, nor does it require prior approval by OIA of any candidate selected by the CNMI government to fill a position.