GovGuam Dipping Into Solid Waste Accounts for Cash


Guam –  GBB’s David Manning told the District Court Thursday that the receivership has resulted in significant savings for GovGuam.

The Federal Receiver is building the new Layon Landfill and overseeing the operations of DPW’s Solid Waste Division.

During the Quarterly Status hearing,  Principal Associate Manning estimated that $21 million dollars has been saved in both the construction of the new landfill and the day to day operations of the Solid Waste Division.

Read GBB’s Quarterly report

As a result revenues have increased. But Manning expressed concern about $3.6 million dollars in withdrawals that GovGuam has made from the Solid Waste Management account. He said there was no documented justification for any of the withdrawals GovGuam has been making.

“The solid waste funds under the bond indbeture and under law are Trust Funds. And you can’t comingle Trust funds with everything else,” said Manning.

Manning: “When you take the cash, it basically winds up going to other things.”

PNC News: “Do you know where?”

Manning: “No. We don’t know where.” But “When that occurs, then it means when you need that cash in order to pay for things its intended for, its not there. So, we’ve ask the court and the court has agreed to order that those things stop.”

Mannning also reported that acts of vandalism at the Solid Waste compound in Harmon have resulted in additional security costs. Paper has been stuffed into gas tanks, and hydraulic lines have been cut on some vehicles. As a result an estimated $160-thousand dollars will be spent on security this year. In some of the cases, Manning said disgruntled employees are suspected and some employees have been disciplined.