RE: Spin City and overtime pay for cabinet members…

Dear Friends,

In today’s Marianas Variety article entitled, "House panel looks into Covid-19 payroll records," it states, "The documents indicate that over $2 million was paid from March to April to some cabinet members and government employees. The amount of Covid-19 “supplemental pay” for cabinet members in one pay period ranged from $96 to $2,300." (https://www.mvariety.com/cnmi-local/73-local/4611-house-panel-looks-into-covid-19-payroll-records)

I do not understand how this could even be possible, because we were told several times that none of the cabinet members were paid. But don’t take my word for it. Let’s review their own words:

In a KUAM News interview on June 5, 2020, Governor Torres stated, "In terms of payment, none of them [cabinet members] has gotten paid." (https://m.facebook.com/story.php?story_fbid=280614589971901&id=39567613741&sfnsn=wa&d=w&vh=e).

In an article in the Marianas Variety on June 9, entitled "Administration: Cabinet members have not been paid overtime," "GOVERNOR Ralph DLG Torres and Lt. Gov. Arnold I. Palacios, in a press briefing on KKMP radio Monday, reiterated that no cabinet member has been paid overtime." (https://www.mvariety.com/cnmi-local/73-local/4281-administration-cabinet-members-have-not-been-paid-overtime).

Lt. Governor Palacios said based on his “full understanding of overtime regulations or laws, cabinet members, being exempt employees, are not allowed to be paid overtime pay. Unless the law has changed over the years, I believe that they are not entitled to [overtime pay].”

Palacios added, “[Cabinet members are] going to be the last to be paid out, probably in a fiscal year, if not beyond,” if they are eligible for OT pay.

I appreciate Lt. Governor Palacios for expressing his opinion that cabinet members are not allowed to receive overtime pay. Lt. Governor is correct.

The Governor’s Press Secretary Kevin Bautista had this to say: “No ‘illegal’ Covid-19 pay was paid out to exempt employees and exempt employees who happen to be on the cabinet.

“Due to the evolving nature and unpredictable threat of Covid-19 in the CNMI, as well as the shortage of critical personnel within the Commonwealth government for sufficient response, all exempt employees involved in the CNMI’s Covid-19 response were properly reassigned to fulfill Covid-19 related work, including properly filling out Category B documentation with FEMA that outlines their reassigned work in line with federal reimbursement requirements."

Kevin Bautista, who received close to $13,000 in overtime pay after Super Typhoon Yutu, should know better, most especially after Attorney General Edward Manibusan released his legal opinion clearly stating that there is no legal basis for overtime pay for cabinet members, and that he would work with OPA in recouping overtime pay once OPA completes their audit.

What is deeply troubling is that Kevin and other cabinet members are missing the big picture here, so let me break it down for them:

1. Let’s be clear. COVID funds are not being used to pay overtime to cabinet members. Local taxpayer funds are being used, just as they were used to pay illegal overtime to cabinet members after Super Typhoon Yutu.

2. FEMA cannot and will not reimburse any overtime or payments unless it adheres to existing CNMI policy and law. FEMA did not reimburse the CNMI government for illegal overtime by cabinet members after Yutu, and they will not reimburse the CNMI government for COVID pay, because the CNMI laws have not changed, and appointed officials (cabinet members) are not eligible for overtime pay.

3. What is being paid out to cabinet members is worse than overtime, because they are not being paid for working beyond eight hours a day. They are actually being paid double pay. They are collecting their salary for their appointed position, while at the same time collecting additional pay for the hours they would normally be putting in as cabinet members. While on Administrative leave, they are receiving an additional government issued check because they have "additional duties." But the point here is, they cannot receive any payments by the CNMI government beyond their salary. A government employee cannot hold two different government positions at the same time and collect two government paychecks for two jobs.

4. The amounts that are being paid to cabinet members in illegal overtime could have easily been used to hire back furloughed employees, whose salaries are much lower than cabinet members. Are we to believe that none of the furloughed employees could do the work of the cabinet members, that no one else was qualified enough to carry out such tasks?

5. Here are the words from a FEMA official I received in an email: "If it is determined that anyone was erroneously reimbursed for overtime compensation, FEMA will seek a de-obligation of funding from the government of CNMI. During the current COVID-19 disaster event, FEMA will continue to fund the Public Assistance program in accordance with laws and program guidelines. Any personnel included in projects submitted to FEMA who are determined to be ineligible to receive overtime compensation will be excluded from reimbursements."

At a time when the CNMI government has very little money, when we must all be fiscally conservative and make huge cuts, when hundreds of government employees were furloughed and to date have not received any PUA assistance, the CNMI government can still somehow manage to pay out illegal overtime using local taxpayer funds, even though the people of the Commonwealth were told that none of the cabinet members were paid yet, and if they were to be paid, they would be the last to be paid, only after FEMA approved it.

It seems the same mistakes are being repeated after Yutu, and that we did not learn our lesson.

What is clearly misunderstood is that no one is doubting the work being done by cabinet members during the pandemic. We thank them for their work and appreciate them. But overtime pay was intended for front line workers who are actually eligible to receive it. Front line employees’ salaries are much lower than cabinet members as well.

Appointed officials are no more entitled to overtime pay as elected officials. Incidentally, we had two House Minority members volunteer to serve on the COVID-19 Task Force. One member served for two hours and then was removed. And both of them would have never submitted for overtime pay had they been allowed to serve.

I am sure Kevin will claim we in the Minority are once again being "political" and he will spin whatever I’ve said. That is to be expected, as he reports directly to and speaks for the Governor. The only thing is, he shouldn’t be paid overtime to do that, and if you really want to see whether or not you are eligible for overtime, all you need to do is review your Notice of Personnel Action. If it says you are not eligible for overtime, then you are not. Thank you and God bless you and your family.

Respectfully,
Ed Propst