USE OF FSM GOVERNMENT VEHICLES LIMITED

August 4, 2005

FSM Information Services

President Joseph J. Urusemal has issued a new FSM National Government vehicle policy which will limit the time employees can utilize government vehicles.

The policy will affect the Executive Branch, Offices, and Agencies of the Government of the Federated States of Micronesia. Effective July 14 2005, the National Police have been ordered to vigilantly enforce the new policy.

The new vehicle policy has, among many other provisions, limited the 24-hour use of the government vehicles to only the President, Vice President, and the National Police.

It stipulated however, that based upon the nature of their official duties, the President may authorize 24-hour use of government vehicles to the Department Heads, Post Master General, Public Defender, the National Elections Director and the Director of the new Office of Compact Management.

The new policy directed those Agencies governed by a Board of Directors to adopt a vehicle policy of their own by September 30 2005, otherwise the new policy will be applied to that agency accordingly.

Under the parking delineations, the policy requires all Congress Project Vehicles to be parked at the office of the respective election district entity responsible for the repair, maintenance and care of such vehicle.

The policy maintains, in addition to the many new provisions, the normal Administrative responsibilities, requirements and penalties for drivers of Government vehicle.