OFFICE OF THE FSM NATIONAL PUBLIC AUDITOR

PRESS RELEASE #2010-02

ONPA RELEASES INSPECTION REPORT OF KITTI COUNCIL ALLEGATIONS
ELECTION DISTRICT II IN POHNPEI

The Office of the National Public Auditor (hereinafter, ONPA) announces the release of Report No. 2010-02: Inspection of Kitti Council Allegations Election District II In Pohnpei. Soft copy of the report is available for public review online at ONPA's website (http://www.fsmopa.fm) and hard copies are available at the ONPA';s offices in Palikir, Pohnpei and Weno, Chuuk.

The allegations that form the basis of Report No. 2010-02 were made by the Isokeohnedi En Wein Kitti and the Kitti Municipal Council (collectively, "Kitti Council"). The Kitti Council registered a formal complaint against the Election District Number II (hereinafter, ED#2;) Representative in the FSM Congress (hereinafter, Senator;) and requested the ONPA investigate the matter. Seven specific allegations were made by the Kitti Council regarding the Senator's involvement in the management and administration of publicly funded projects and, further, the misuse and abuse of public funds.

The ONPA conducted an inspection into the allegations-its purpose to determine whether any evidence existed to support the allegations and, if so, whether a formal investigation is warranted. The ONPA's inspection was completed pursuant to the authority established by Title 55 FSM Code, Chapter 5 and in accordance with the Quality Standards for Inspections used by the U.S.Office of the Inspector General.

Of the seven allegations, the ONPA concluded that three of the allegations warranted further investigation as follows:
1. Senator’s involvement in the distribution of coral and PVC pipes purchased with public funds and distributed to private residences and churches;
2. Senator’s involvement in suspending the Wone Elementary School Road project prior to its completion due to poor election results; and,
3. Senator’s use of public funds to purchase airline tickets for campaign traveling.

Said allegations were referred to the ONPA’s Compliance Investigation Division(CID) for formal investigation. On completion of CID’s investigation, any findings of illegal activity will be referred to the Department of Justice for further investigation and/or prosecution.

The four other allegations made by the Kitti Council were found to be lacking merit and were not referred to CID. These included an allegation that funds had been allocated for the purchase of a flatbed truck for the Kitti MunicipalGovernment and that Kitti had not received the truck. The inspection team found that ED#2 had purchased a flat bed truck, however, the project and procurement documents had not specified that the truck would be provided to the Kitti Municipal Government. The truck was assigned to a different municipality within ED#2 and is accounted for.

The Kitti Council also alleged that an outboard engine was purchased without proper appropriation of funds. The inspection found that line item section 1(3)(c)(x) of Public Law 15-44 had included an appropriation of funds for the purchase of an outboard motor to be used by the Kitti Police.

The next allegation was that public funds allotted for the building and repair of civic centers were used to refurbish synagogues of certain churches. The inspection team found that funds were used to repair the Rohn Kitti and Nan Mand civic centers which are adjacent to churches. There was no evidence that the funds were used to repair the churches.

The final allegation concerned funding for the Kitti Fish Market being used for other purposes. The inspection found that Public Law 15-30 had appropriated funds for the Fish Market but in December 2008 the law was repealed.

OFFICE OF THE NATIONAL PUBLIC AUDITOR P.O. BOX PS-05 PALIKIR, POHNPEI FM 96942 TEL. 691-320-2862/2863 FAX/691-320-5482 www.fsmopa.fm Hotline: 691-320-6768