Guam – District Court Judge Francis Tydingco-Gatewood has ordered the Treasurer of Guam to provide documentation to support its withdrawals from DPW’s Solid Waste Management Division [SWMD], or GovGuam must give the money back.
In her order, the Judge recognized that since the SWMD has been under the management of Federal Receiver GBB, “SWMD’s revenue has significantly increased – outpacing expenses by a 23 to 1 ratio.”
As PNC News reported last Thursday, the Federal Receiver asked the court to order a stop to the practice, and require GovGuam to provide documentation for all withdrawals. GBB pointed out that GovGuam was dipping into the SWMD account, taking out funds un-releated to the Division’s own expenses, and not explaining what the money was being used for.
Judge Tydingco-Gatewood agreed ordering that “the cash in the SWMD bank accounts, must be reserved exclusively for the use of the SWMD. The reserves required to sustain SWMD operations going forward, are essential to compliance with the Consent Decree and must be backed by the cash balances to make them meaningful.”
FY 2010 SWMD:
SWMD Expenses: $3,951,166.74
Withdrawals in Excess
of SWMD Expenses: $3,698,166.74
“Such transfers should be supported by documentation of the justification for the transfer. And, the transferal of any SWMD funds shall occur only after the Receiver has been informed of the need for the transfer and consents to the request or upon court approval.”
“Accordingly, the request to reserve the cash in the SWMD bank accounts for the use of SWMD is hereby APPROVED.”
Judge Tydingco-Gatewood has given GovGuam until January 14th to provide the proper documentation supporting the withdrawals or “redeposit $3,698,166.74 in SWMD’s bank account or provide SWMD credit for future expenditures.”