King-Hinds: Federal intervention is not the answer to audit findings

CNMI Congresswoman Kimberly King-Hinds said that federal intervention is not the answer to the recent news that the CNMI faces nearly $257-million in questionable costs through fiscal year 2022.

“Some are calling for federal intervention, but I just do not think that is the answer,” she said in a video posted to her official social media page on Wednesday. “We can hold ourselves accountable without someone else having to come in and do it for us.”

She added, “Now that $257.4-million in questioned costs does not mean $257-milllion was lost or stolen. It means the auditors are saying ‘show us the paperwork. Show us the process of how you spent this money.’”

King-Hinds said that if the government can not properly respond to those questions, then the community should demand answers and improvement. The congresswoman said the CNMI needs a long-term fix and, ultimately, a cultural shift on how it manages money.

“Federal intervention, it might sound like a fix, but remember when we called for federal intervention for our labor and immigration? What did that lead to? It led to a complete loss of local controls,” she explained.

King-Hinds said she will support the Apatang-Mendiola administration to strengthen local financial controls and work with federal partners to “clean this up.”

In a previous press conference, Finance Secretary Tracy Norita called the results “deeply concerning,” saying the findings confirm the financial chaos her team inherited.

“The outcome of this audit proves that we are facing unprecedented financial noncompliance. And the Department of Finance has been communicating this situation and providing information to the Office of the Public Auditor and the Office of the Attorney General for the past three years to the White-Collar Crime Task Force,” she said during a press conference held last Oct. 16 at the Governor’s Office conference room on Capitol Hill.

She added that the collection process has already begun, with CARES Act funds the first target, as the CNMI has been asked to voluntarily return $11 million spent between 2020 and 2022.

The single audit issued a disclaimed opinion and identified major failures in procurement, federal grant monitoring, and compliance. Norita said the outcome threatens the CNMI’s access to federal grants and bond markets—crucial for addressing pension obligations. In the worst case, the U.S. Treasury could claw back funds directly from reimbursements due to the CNMI, cutting into programs and straining local cash.