I heard in July of this year the three national departments (finance, justice & education) and one office (SBOC) were scolded during the special session of the Congress, and were lectured on the importance of FSM's sovereignty vs complying with OIA's federal requirements. Yet since 2006, Congress been replacing their locally funded programs with Compact funds: $4M out of Education Sector fund to finance COM operation; additional $300K out of SEG to replace their student financial support at COM in addition to the $274K for CWSP, and another $104K out of SEG to finance Teacher Corp at COM. In the same year, Congress swept their funded T-3 Program under Compact Education Sector which triggered negative reactions from OIA which refused to finance training for youths way over student's ages, hence started the political impasse or infringement between the National Congress and OIA, trapping the executive branch in between. The national congress even demanded JEMCO to approve the nation's annual budget before they'd approve it, as if JEMCO works entirely for the FSM.
Anyhow, by sweeping these administrative and program costs under the Compact funds, it frees up more local or domestic revenues for the Congress, but ultimately it places these entities under the total control of Uncle Sam when their regulations now control how these entities operate and funded. There is already a loss of over $1.2M to FSM from the SEG funds due in large part to the Congress' negligence which they pinned it on SBOC for the faults, and added in the oversights and overexpenditures of the DOJ and DFA simply to distract the public's scrutiny now that it's election year!
This is ironic because I know OIA been micro-managing some, if not many, compact funded activities in FSM, and after five years into the Compact II, now JEMCO requires FSM to report back the statuses of the last five years and its long term plan for the remaining years. FSM did not have any report, but why should it have any when OIA micro-manages the last five years. OIA approves reprogramming of compact funds, despite the fact that the Compact grants the FSM President authority to reprogram Compact funds within $1M combined total at each transaction request from the States. So the question is is OIA working for SBOC or with SBOC in this regard?
The FSM Congress operates under the provisions that Compact sector funds should be deposited into the nation's national treasury, but nonetheless when these funds are deposited, they're already attached to JEMCO's approved activities, giving the Congress very little or no room to appropriate any Compact funds.
