Guam – Senator Ben Pangelinan has sent a letter to the Inspector General for tax administration asking for an audit of the $72 million dollars given by the Feds to GovGuam under the Make Work Pay Credit [MWPC] program.
Pangelinan says he made the request following statements from the Cavlo Administration that most of the money was not used for the Credit to taxpayers but to pay other GovGuam expenses. And that as a result at least $55 million would have to be paid back to the Federal Government.
“The Calvo administration has continually said that money was used illegally we’re gonna have to pay it back I’m contending that the money was given to the government of Guam to use for it’s needs to make up for the reduction of withholding taxes which includes of course a need to pay tax refunds on that and so what I’m asking the inspector general is to come in review how we’ve applied those make work tax credit program to make sure they fit with the original intent of the award,” said Senator Pangelinan.
Because of the disagreement over the figures, Senator Pangelinan wants the inspector general to audit the Make Work Pay Credit to determine how the money was spent and how much needs to be paid back.
Governor Calvo declined to directly respond to Pangelinan’s claim.
Instead, Governor’s Spokesman Phil Leon Guerrero said the Administration welcomes any audit that might be undertaken. And he reiterated the administration’s position that most of the $61 million dollars received for the Make work ppay credits was spent by the prior administration on GovGuam expenses unrelated to the Work Pat Credit. And as a result, Leon Guerrero said “everything that wasn’t paid to taxpayers for this program will need to be paid back to the federal government by January 2013.” He re-affirmed that that amount was about $55 million.