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FSM Vice President Signed Into Law Congressional Act No. 10-17, Authorizing an Exceptional Redesignation of Certain Compact Inflation Adjustments Funds

PALIKIR, Pohnpei (FSM Information Service): July 4, 1997 - FSM Vice President Leo A. Falcam, this morning, signed Congressional Act No. 10-17, and designating its as Public Law No. 10-5, in the presence of Pohnpei Lt. Governor Dion G. Neth and Acting Attorney General Emilio Musrasrik. Lt. Governor Neth was given the historic pen with which Falcam signed the new law as a memento of the occasion.

Public law 10-5, authorize an exceptional redesignation of an estimated $2 million capital inflation adjustments to current account or operations costs of the government which is needed to cover the third quarter expenses of this fiscal year, from July to end of September this year.

During the State and National Leadership Conference (SNLC) held in early May, it was agreed that FSM President shall submit a proposed amendment to Congress for its favorable consideration, to Pohnpei State to use Capital inflation adjustment proceeds for operations. Without the new law, it was anticipated that Pohnpei State would have to face financial problems and drastic cuts in operations during the last quarter of the current fiscal year.