Guam - Island leaders react to the news of the class action lawsuits filed against the Guam Memorial Hospital by saying it was to be expected. Senator Ben Pangelinan says although provisions are in local law to pay out tax refunds it's often not the case, noting, "When we budget for the operations of the government and we say that this year is $535 million, we actually predicted revenues of $635 million because we already take right off the top the hundred million that we set aside for refunds and so there really is no excuse for not paying current year refunds."
Governor Eddie Calvo, however, doesn't feel the litigation is needed at this point. "That's why we are pushing forward to a bond borrowing initiative to pay off these tax refunds, so there will be no necessity for a lawsuit," he said.
As for the class action lawsuit filed against the hospital, like Pangelinan, Senator Frank Blas, Jr. says it was inevitable. "I don't blame the GMH employees; this is money that in good faith they felt that the money was going to be there. The government we got to be able to make good on those promises that were made to these people," he said.
"They put in many years with the expectation that this money was going to be placed properly so that they can retire when it comes time to retire."