Claims Under Micronesian Claims Act

An opinion was requested as to whether the Foreign Claims Settlement Commission (FCSC) may lawfully obligate and expend appropriated funds to pay salaries and administrative expenses which may be incurred in readjudicating claims under the Micronesian Claims Act. The Chairman of FCSC indicated that, in two lawsuits in which he is named defendant, the court has remanded for redetermination certain claims under the act which were originally adjudicated by the defunct Micronesian Claims Commission (MCC). The Micronesian Claims Act established MCC to be under the control and direction of the Chairman of FCSC and granted MCC the exclusive jurisdiction to hear and adjudicate the claims of Micronesian inhabitants. Congress has never appropriated any funds to MCC but has increased the lump-sum appropriation to FCSC to cover the costs of operation of MCC. GAO concluded that MCC still has legal existence for the purpose of readjudicating the remanded claims. In addition, GAO believed that Congress anticipated that FCSC would continue to expend funds under the act even though MCC previously had terminated its activities. Accordingly, because Congress authorized appropriations to FCSC to carry out the purposes of the act, the FCSC lump-sum appropriation may be used to cover expenses incurred in connection with adjudicating the remanded claims.