HAGATNA, Guam (Marianas Variety, July 24) - The Guam Supreme Court has ruled in favor of Gov. Felix Camacho’s request to borrow $218 million on the bond market.

On April 29, Camacho signed Public Law 27-19, which authorizes the governor to issue government of Guam bonds to pay certain GovGuam expenses.

The expenditures were listed: $139 million for income tax refund payments for year 2001 and 2002; $30.4 million to utility payments to the Guam Power Authority; $25.2 million to the Retirement Fund; $15.3 million to withholding tax payments for line agencies; $5.2 million for vendor payments; and $2.7 million for public school repairs.

Attorney General Douglas Moylan refused to sign for the bonds saying the governor couldn’t borrow that much money, according to Camacho’s spokesman, Shawn Gumataotao.

Camacho took Moylan to the Guam Supreme Court stating that under the Organic act, he would have the power to borrow the bonds.

The Guam Supreme Court ruled in favor of Camacho yesterday.

According to Gumataotao, Camacho is pleased with the decision handed down by the court.

He thanked the justices for the expeditious action on this critical issue.

The bond indenture must be approved by the Legislature and it will take about 4 to 6 months for the monies to be available for the government. In 2 to 3 months the government will receive the bond anticipation note.

July 24, 2003

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