Guam - In November of last year, the Guam Housing Corporation decided to implement a law that's been on the books since 1991.  It resulted in the agency paying out $174,000 in merit bonuses retroactive to the year the law was passed.  The merit bonuses were awarded without board approval and senior management received the top three highest increases.

The finding is one of several noted in an audit of the agency's Fiscal Year 2010 finances.

GHC president Martin Benavente said, "Mary Guerrero implementing it as acting president was okay in my opinion. The legal counsel took a look at it and it was okay so I think everything at this point is up and up. And it was a law that we had to follow," he said.

The Public Auditor also found that despite a lending policy that denies eligibility for loans if an applicant has a history of bankruptcy within the last five years, one such loan had been approved without board approval. The audit also noted that rental income and collections of loans increased in the last year, as well.