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CNMI in a Scary Situation WE ARE in a Scary Situation.' Thus Said Samuel F

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CNMI in a Scary Situation WE ARE in a Scary Situation.' Thus Said Samuel F Micronesia’s Leading Newspaper Since 1 9 7 2 Vol; 22 No. 79 Saipan, MP.96950 .. ^ 1993 Marianas Variety. Friday - July 2, 1993 Serving CNMI fo r 20 Years j CNMI in a scary situation WE ARE in a scary situation.' Thus said Samuel F. McPhetres, Chairman of the Economic De­ velopment Committee of'the Saipan Chamber of Commerce, in apersonal note during the open­ ing of the 1993 Economic Sym­ posium at the Aqua Resort Club Wednesday. ' ' McPhetres said he had been an observer of the social and eco­ nomic situations in the CNMI for many years, both by profession and avocation. “There has been a dramatic increase in ‘us vs. them” conflicts in the Commonwealth,” he said. “These issues can be sum­ marized in their extreme by the rise in statements to the effect that ‘if you don’t like Saipan, leave’ colhdmgwith“wesavedyoufirom the Japanese, you should show more gratitude’.” SAM MCPHETRES (left), chairman of the Economic Development Committee, and Saipan Chamber of Commerce President Roy Morioka listen “This is expressed in the cur­ to speakers during economic symposium, including Commerce and Labor Director Joaquin S. Torres (right). rent bitter debate over the nature of Article XII of the Constitution. But it does not stop there. It is U ncertainty, bad publicity present in the breakdown of fami­ contribution lies and the epidemic explosion of alien labor of drug use. It is part of the non­ h u rt funding for projects resident worker treatment issue. to econom y It can be found in the deteriorat­ THE UNCERTAINTY and nega­ lems about Article 12 on business Marianas Agupa have also been ap­ ing relations between the Com­ GOVERNOR Lorenzo I. tive publicity generated by the Ar­ here in the CNMI. So in terms of proved. monwealth and the federal gov­ ticle 12 controversy are making it financing, they are having second Article 12 restricts land owner­ Guerrero has cited the role of ernment.” hard for developers to raise funds thoughts about the capability of ship to persons ofNorthem Marianas Realizing its obligation to do foreign labor in the development for their projects in the Common­ most of these resort hotel projects descent something to help improve the of a self-reliant economy in the wealth, Representative Heinz S. to recuperate from the economic “Even if approval has been se­ Northern Marianas. Hofschneider said yesterday. slowdown that may be caused by cured for these projects, the proJec­ situation, McPhetres said the “Thanks to its foreign labor “Problems associated with Ar­ this uncertainty,” Hofschneider tions that were furnished the finan­ chamber sponsored a conference force, the NMI sees the dawn of ticle 12 created a such a nega­ said. ciers with regards to the expected several years ago, when the Com­ economic self-sufficiency,” he tive impact v. .1 the global financing Several hotel and golf course performance of the hotels may no monwealth was faced with over­ said in remarks delivered at the community and this is having an proJects are waiting to take off, after longer be true on account of the development. “Now we are look­ Fourth Pacific Islands Conference adverse effect on the current lineup the Legislature approved a number economic uncertainties caused by ing at a reversal of development, of Leaders in Tahiti on June 24- of hotel development projects that of commercial leases and lease ex­ Article 12,” Hofschneider said. even, if some current crises are 26. have recently been approved,” said tensions of public land. Hesaidtheseprojections took into not resolved, a regression,” he Hofschneider, who is also chair­ In Saipan, at least four resort hotel consideration healthy tourism sce­ Guerrero said a small local la­ said. man of the House Natural Re­ and golf course projects have been narios that may no longer be true Four subcommittees of bor population should not be a sources. approved: Haas & Haynie and Pa­ after all the negative publicity on the McPhetres’ committee studied hindrance to any government’s He said financial institutions cific Resort Development in Obyan land alienation provision. efforts at achieving economic were becoming extremely cautious Beach, United Micronesian Devel­ “The Legislature and theJudiciary problems in specific sectors - land, self-sufficiency and prosperity in deciding which projects in Saipan opment Association in Marpi, and must come up with a no-nonsense labor, capital and social - in the associated with a modernized they will be investing money in the Shimizu golf course which is approach to Article 12 quickly be­ past six months and came out economy. and how much. now under construction in Kagman. fore confidence in the Northern with their reports, which were Because if an island economy “Lending institutions are very In Rota, proJects of the Southern Marianas is all lost,” Hofschneider presented during Wednesday’s is limited by a small indigenous much aware of the impact of prob- Cross, SNM Ccxp., Nico Corp. and said. (RHA) symposium. labor pool, the use of foreign la­ McPhetres said the final report, bor could be a viable solution to which would include comments sustain economic development, and recommendations gathered he said. during the symposium, would be “A small local population does presented to the SCC board. A not block the path to a modem plan of action, based on the re­ economy. The limitation of a port, will be presented to the gov­ small indigenous labor pool can ernment for action. be overcome. The use of foreign He explained that some of the labor can be a bridge,” Guerrero recommendations might involved told Pacific island leaders in his only the private sector, in which speech about the CNMI experi­ case action would not require gov­ ence on the issue. ernment participation. According to Guerrero, new As expected, the presentation nations build economies with la­ of the land subcommittee drew bor intensive industries and that the most attention from the con­ is why island nations with small ference participants. Larry King, indigenous populations may be a lawyer from Carlsmith law of­ considered somewhat on the slow fices and a member of the sub­ side of development. committee, said more than 20 law- continued on page 6 PAVILION project nears completion at American Memorial Park. continued on page 2 2-marianas variety News and views-friday-july 2.1993 THE HOUSE Public Utilities, ascertain thevalidity of earlier find­ quiry into CUC’s financial condi­ Guerrero twice refused the sub­ and perhaps even look at the possi­ Transportation and Communica­ ings by the committee on CUC’s tion after its fuel vendor, Shell poena, which led to filing of a bility of refinancing existing obli­ tion Committee will start looking financial condition. Marianas sought government’s contempt charge in Superior Court gations, all these towards CUC at­ at the original canceled checks is­ “Now that all the materials and help to collect past due bills from After the court dispute, the com­ taining full cost recovery as man­ sued by Commonwealth Utilities documents we requested have all the utilities firm. mittee and CUC agreed to let the dated by the grant pledge agree­ Corp. (CUC) from 1990 to 1992 been logged and accounted for, we The committee concluded that public auditor take custody of the ments,” Hofschneider said. next week, according to Commit­ will now look at how CUC col­ the firm was mismanaged. subpoenaed documents, which The grant· pledge agreements tee Chairman Heinz S. lected and spent its money, and As the committee continued its were to be made available for the between the US and the CNMI Hofschneider. whether the proper procurement investigation of CUC, committee’s inspection under the second multi-year fed­ In an interview yesterday, regulations have been followed in Hofschneider subpoenaed the origi­ “We plan to reassess eral financial assistance package Hofschneider said a final audit of its dealings,” he said. nal checks issued by the firm from government’s subsidization of for the CNMI require CUC to all thecorporation’s financial trans­ Last year, Hofschneider’s com­ January 1990 to May 1992. CUC, reevaluatepolicies andregu- achieve full cost recovery Jp its actions would start immediately to mittee conducted an oversight in­ CUC Executive Director Ray lationspromulgatedovertheyears, operations INVITATION TO BID COMMONWEALTH UTILITIES CORPORATION Tea ceremony set CUC-ITB-93-0018 The Office of the Executive Director, Commonwealth Utilities Corporation (CUC) is soliciting sealed bids for the Construction of ROTA INDUSTRIAL PARK TO TATACHOG SATELLITE CAMPUS WATERLINE at war memorial PROJECT, Rota, Commonwealth of the Northern Mariana Islands. The sealed bids shall be identified on THE GRAND Master, Dr. Sixth Urasenke Youth Goodwill the outside of the envelope by the invitation for bids number CUC-ITB-93-0018. Bids in duplicate will be Soshitsu Sen XV, of the Urasenke Cruise will accompany the Grand accepted at the Office of the Manager, Procurement and Supply, CUC at Lower Base, Saipan until 2:00 p.m., Master to Saipan and Guam. The local time on July 09, 1993 at which time and place the bids will be publicly opened and read aloud. Tradition of Chado, the Way of Tea, will present a ritual memo­ purpose of the cruise’is to train A bid guarantee of 15 percent of the total bid price must accompany the bid. This security may be in cash, rial tea at the war memorial erected young leaders in the Way of Tea certified check, cashier’s check, or other form acceptable to the CNMI Government made payable to the by the Japanese government at through a variety of programs Commonwealth Utilities Corporation with the notation on the face of the check: “Credit Account No. Banadero (Last Command Post) aimed at personal growth and de­ F93W1002”.
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