30 May 2012

Retirement Fund sues CNMI government and agencies

2:07 pm on 30 May 2012

The Northern Marianas Retirement Fund has filed separate lawsuits against different government agencies for alleged failure to remit payments.

The lawsuits were filed before the U.S. District Court for the Northern Marianas Islands Bankruptcy Division.

The Fund is suing the Commonwealth Government Credit Union for breach of contract after it allegedly failed to make scheduled payments on the two million US dollars it borrowed in 1996.

In the complaint against the Public School System, Commonwealth Healthcare Corporation, Northern Marianas College, and other co-defendants, the Fund is suing for breach of contract, saying the defendants' failure to remit 45.4 million dollars in payments.

This failure, the Fund says, contributed to its need to file for Chapter 11 bankruptcy petition.

The Fund, meanwhile, says the government breached an agreement in February and March 1995 to finance the construction of a judicial complex.

The Fund also asked the court to appoint a receiver to collect and remit all fines, fees, and monies gathered and collected by the Judiciary.