Congress of the Federated States of Micronesia

Speaker Apologizes

PALIKIR, Pohnpei (FSM Congress): January 13, 2003 –
Speaker Jack Fritz expressed apologies to members of
Congress, leaders of the national, states and municipal governments,
traditional and church leaders in the event of the criminal charges filed
against him. Fritz said he hope the leaders, as will as all other citizens,
do not feel that “I have let you down.” He said he has not and will let the
case take its toll because he is confident the law will find him free of the
charges. Fritz stated during his apologizing statement that people should
“forgiving those who trespass against us” as the only way to keep the
relationships between one another.

The statements were made during the closing day of the 4th Special Session
held January 8-11, 2003 after Congress overridden six measures being vetoed
by the president and passed on 2nd and Final Reading few other measures.
The vetoed measures were related to the availability of funds. What causes
these vetoes by the President and overrides by the Congress were reports by
the Department of Finance and Administration, according to discussions made
on the floor regarding the measures.

The department first reported to the Congress of fund balances in previous
appropriations, but when Congress, during its last regular session,
reallocated the use of such funds by amendments to the laws, the department
advice the president to disapprove them, because the fund balances were not
correct.

Congress has been, for quite a while, insisted that the department come up
with accurate reports, especially on funds status and revenue projections.
The reports have been inconsistent and subject to discussions during
congressional sessions and meetings.

There were nine measures enacted during the 4th Regular Session held
October-November 2002 that were either vetoed in their entirety or in parts.
These were all, except for one, funds related and vetoed because of
conflicting reports.

There were 5 other bills and 3 resolutions approved during the session.
These included two major bills, which concern the FSM Social Security and
the FSM Employees Health Insurance Plan.

Congress agreed that the National Government Employees’ Health Insurance
Plan needed improvement. It approved a legislation, C.B. No. 12-79 to
remove the Secretary of the Department of Finance and Administration from
administering the plan. Congress believes the plan needs a board of
directors to oversee and set appropriate regulations to improve the
operation of the plan. It also approved changes to the Social Security
system to increase the wage base from $3,000 to $5,000 per month, created a
new section to permit the president to enter into agreement with a foreign
government relating to social security arrangement. This, however, will be
subject to congressional approval by resolution. The increase in wage base
takes effect October 1, 2003.

In discussing the later measure, members asked the members of the Board of
Directors for the Social Security to cut cost of their travel and to keep
their meetings within the nation, instead of in Canada or the United States.
Also expressed during discussions on the S.S. bill was the need to re
activate its radio programs in order to educate the general public on what
is going on with the program and make sure all states share the programs.

When Congress discussed the bill that provide funds for the national/state
joint law enforcement program, which was brought out for some improvement,
members raised disappointment over the way the FSM Department of Justice
handles these funds. Members said the funds were provided to supplement
what ever amount the states have to enforce the national laws and maintain
order and peace in their state. The funds were also provided to the states
to show appreciation of the national government to the states for their
cooperation in enforcing the requirement of the national laws in their
states. But the restrictions placed on the use of the funds have become too
restrictive for the states.

Congress, however, would like the department to monitor the use of the
money provided under the national/states joint law enforcement program, but
not make it difficult for the states to use the fund. The requirement and
restrictions were deleted out of the JLEA funds by amendment to the FY 2003
Budget.

Senator Jacob Nena of Kosrae could not attend the 4-day 4th Special Session
due to illness.

Senator Peter M. Christian of Pohnpei, Chairman of the Committee on
Resources and Development and FSM Chief Negotiator of the Compact between
the U.S. and the FSM made a statement regarding his disappointment toward
the United State Government for the way it handles the negotiations thus
far. The text of that statement would be provided in a separate release
when it is available.