Bright and sunny with a strong breeze continuing to bring cool relief.
This cartoon was inspired by the Governor's actions in the week following his SOCA (State of the Commonwealth Address) where he said he had made mistakes but learned from them, and that he would not repeat them.
Of course, in the SOCA he blamed the Federal government for failing to help enough. Since then he has made no progress on paying the contributions owed to NMIRF. He has abandoned his former plan pushing for pension obligation bonds (reported after I drew this cartoon), with his new mantra being we need "new" investment (and his latest deal with E-land for the purchase of Aqua Resort Club). He has said that he must continue with strong government employment practices and indicated he wants to hire more, despite our bloated government payroll. He has already issued an RFP for a new power plant, despite the questionable need for such an expensive purchase at this time. He has shelved the request for extradition of Ed Buckingham and there appears no likelihood he will do so. And of course, he is gearing up to defend himself in the Senate, recognizing he will lose in the House on the impeachment.
He obviously has not learned anything.
Coincidentally, the Governor's photo in today's Variety with the Mount Carmel School (celebrating 40 years of Catholic education) shows him wearing a yellow tie. :-)
Since I drew this cartoon, the Governor has also avoided the MV news reporters, despite his promise of greater transparency.
The proposed amendments to our CNMI Constitution includes HLI 17-1, to allow Pension Obligation Bonds (POBs).
I've written a fairly neutral evaluation of the proposal, posted it at MLSC's Day In Court Blog.
Having started my study of the subject with no pre-conceived notions and being open to the proposal, I'm surprised that I am now completely opposed to this amendment.
I've read a lot of what Bill Stewart has written on POBs and on the NMI Retirement Fund. I've also read news articles by proponents and checked a bit on other jurisdictions that use these.
THE NMIRF: I feel for the retirees and those still working but in the retirement system who have actually worked hard and given good service to the CNMI. They are at risk of losing their retirement because of the mismanagement of the Fund. Whether you blame the Fund managers directly or the Legislature for its faulty design of the system, or the Executive branch and autonomous agencies that have failed to pay their contributions as mandated by law, it's clear that the Fund is not adequate for the purpose of pensions for all those who are in the system--part of the DEFINED BENEFIT PLAN (DBP).
The problem will be limited in time, however, because new hires of the CNMI government are not in the system. They are now essentially on their own, with the option to create their own IRAs. Eventually, the last member of the NMIRF Defined Benefit Plan will die and the pension system will cease to exist.
In the meantime, however, the unfunded portion of the NMIRF's liability to its members can grow because some are still working for the government. As the government continues to fail to pay all that is needed to cover its contributions for such workers, the unfunded gap widens. As events cause inflation and other problems, the unfunded gap can widen. If the Fund loses on its market investments, the unfunded liability can grow. Even the miscalculation on the estimates of the liability--if retirees live longer than expected, for example--can mean the unfunded liability will grow.
The need to address this situation for those CNMI employees who have already retired as well as those still in the pipeline is critical. While there are and have been do-nothing employees who have gotten the benefits of the NMIRF, there are real people who have done their civil service honorably, too. The fiscal soundness of the NMIRF is important to each of these workers for their future. It is important to the CNMI for its integrity.
Nothing in my opposition to the proposed constitutional amendment denies my recognition of the importance of the CNMI in meeting its obligation to its retirees.
Pension Obligation Bonds: The problems I have with the POBs is that I think the benefits from POBs are significantly less than the costs. They will not fix the retirement fund problem completely, but they could bring the CNMI to the brink of bankruptcy and most certainly would weigh down the next two or three generations with staggering debt.
The proposal bandied about says $200million in POBs, but the constitutional amendment imposes no such limit. Anyway, the $200million figure would leave about 25% of the NMIRF liability still unfunded. And the pressure to use POBs for the rest would be great.
While the amount of the unfunded liability can be estimated right now, it can also grow. But more significantly, the constituitional amendment is written in terms of what the CNMI owes the NMIRF (not the real "unfunded liaibility" which is what the NMIRF owes its DBP members). There is no ceiling on what that debt can become. If the CNMI fails to pay again and again, that debt rises; and then there can be greater amounts of POBs. And the CNMI will owe so much on the POBs, and nothing will be protected.
In balancing the needs and ri
Swine Flu:
One death in Guam and 2 confirmed cases in Saipan. Like everywhere else in the US, swine flu makes headline news. Since I've been in Ohio this summer for vacation, visiting family, I've been hearing about swine flu here, too. Ohio also had its first death from swine flu this month.
Swine flu is a pandemic. More than half of the deaths have been in the U.S. It is NOT the most virulent form of flu the world has seen, but it is the current strain and it's causing plenty of harm. Symptoms being talked about here in Ohio are fever, sore throat, vomiting and diarrhea. Best to take precautions.
What's scary in Saipan, though, is how small the population is, how close contact may be unavoidable, and especially how weak our health system is, despite the protestations of CHC and the health department that everything is fine.
Tim Villagomez:
His lawyers are begging for leniency. His family and friends are flooding the court with letters begging for mercy. The newspapers publish only snippets of the requests, but some of them show that the community is also part of the problem.
The comment that gets first place imho in the "you're clueless" category goes to Diego Benevente for this:
“Villagomez has been and remains a respectful and modest public servant in spite of the predicament he found himself in.”
Excuse me? He didn't find himself in a predicament. He committed a crime. He is to blame for his own action. It's about personal responsibility.
I still haven't seen Tim Villagomez own up to his own responsibility in this matter. Yes, he quit his job as lieutenant governor. But that was not until after he was convicted of federal crimes.
I'm guessing he can't say a lot, because he's probably following the advice of counsel to remain silent. But that's a far cry from finding himself in a predicament.
Another comment winner for passing the buck goes to his wife, Margaret Keene Villagomez, who, as his wife, is understandably blinded by loyalty and love. But really, think before you write something like this:
“One of the biggest mistakes that he has ever made, in my opinion, was that he entered the uncertain world of politics where some of the people that he helped would one day be the cause of his demise.”
This just shows it's all about getting caught, in the thoughts of his family. Never mind that there was evidence that he scammed the public through fraudulent rydlime sales to CUC before he went into politics... And those people he helped! How dare they cause him trouble. (Surely she doesn't mean his sister and brother-in-law; it's the snitch who testified against him and those people in the public auditors office and who else?)
I'm not sure what the Bishop hoped to convey with his comment.
“They have strived to live up to the Christian ideals of living out the Gospel message in their day-to-day living. They recognize their mistakes and they are keen on making conscious efforts to correct them. Overall, I see the goodness in their hearts despite their shortcomings.”
I don't remember the Gospel saying anything good about cheating people by enriching your own pockets with a scam, under cover of high status and public power.
And then there are the heartfelt pleas for the sake of the children. I do feel for the children, who are innocent in this matter; who no doubt love their father; who no doubt need their father in their lives. But what are we teaching those children with comments like this?
“Please give them leniency on sentencing day. Please don’t take our families apart. It’s all in your hands.”
“I don’t know how any parent could find the strength to explain to their young children the logic of why their daddy will not be with them much longer, or that soon he may not be coming home at all."
Both of these comments (one from a nephew, one from the wife) again show that denial of the reason why Tim Villagomez is facing jail time. It is not the JUDGE breaking up the family. And what you tell your children is that daddy is a human being who made a big mistake and now must pay for it.
I understand loyalty and wanting someone you love to be given a second chance; be shown mercy. I think Kay Delafield's comments, as reported in the newspaper, help protray that best.
According to the Tribune, "She said Villagomez has no past record of bad acts and he has young children, a wife, a mother and a family who need him in their lives." Okay. Facts. This is an effective plea; simple, direct, not too emotional.
And Sasamoto's comment:
“He has lost credibility in the public eye and I believe that he is truly despondent regarding what he has put his family through.”
Okay, fact and opinion stated as an opinion. Effective.
Lots of people convicted of crimes have wives and children. The judge can't seriously even consider that when sentencing someone convicted of crimes. Many people get despondent when they are caught.
And let's be honest, Tim did some serious harm, despite the denials of his family.
I think Rob Torres' comment sums up the "support:"
Villagomez's counsel, Robert Torres, said his client is no different than other offenders in public corruption cases who have denied their gifts and talents in pursuit of brazen, if not blind, ambition.
“But Tim remains to me someone whom I care for and whom I support unequivocably and without hesitation. I stake my name and reputation as an officer of this court in writing this letter,” he said.
Tim screwed up but we love him anyway. Okay. Now let's get back to logical considerations for sentencing.
Judiciary debt to the Retirement Fund:This one is good: the CNMI
judiciary owes a heck of a lot of money to the NMIRF.
Let's order them to go get second jobs to pay this off, okay? Sic Mike White on them? Threaten them with jail for non-payment?
That's what they do every day to poor debtors without the education and opportunities they all have!
Oh, they want the public to pay from the general fund? That was part of the deal. Okay. They want to work this out. No problem.
Well, there is a problem as there is no easy solution. Oh-oh.
Really, I hope they consider how unreasonable debt happens to the best of us the next time a poor person can't pay in an ordinary debt collection case.
well said, Jane!