144 the contemporary pacific • 22:1 (2010)

———. 2009k. RMI Trust Fund Loses plea bargain with the federal attorney Over $20m. Marshall Islands Journal, 9 and agreed to testify against the other January. three. ———. 2009l. Tony’s Blast. Marshall At issue was the sale, over several Islands Journal, 6 February. years, of Rydlyme, a chemical used Yokwe Online. 2008a. Marshall Islands to clean pipes around generators. A Government: Trust Funds, Visits, and company owned by Joaquina and Legislation. http://yokwe.net/index.php James Santos sold 8,000 gallons of the ?name=News&file=article&sid=2285 descaler to the utilities corporation at a 400 percent markup. The federal ———. 2008b. Marshall Islands Govern- ment Outlines Response Efforts to Emer- charges include three felony counts gency. http://yokwe.net/index.php?name of wire fraud, conspiracy and theft =News&file=article&sid=2276 involving federal funds, and bribery. Villagomez, his sister, and her hus- ———. 2008c. No Confidence Vote band were all charged and released on Motion Withdrawn. http://yokwe.net/ index.php?name=News&file=article $50,000 unsecured bonds; Guerrero &sid=2308 was released on a $10,000 unsecured bond. Investigations lasting eight months revealed that only 11 percent of the chemical was ever used. Accord- Commonwealth of the ing to the twelve-page indictment, Northern the chemical, which was bought in several installments over several years In July 2008, rumors began circulat- for about $300,000, was used only ing that Lieutenant Governor Timothy for cleaning floors or was put into Villagomez was under investigation storage on Rota and Tinian. Despite for some unknown federal crime. The the charges, Villagomez remained in fbi called members of the Common- office, actively performing his duties wealth Utilities Corporation (cuc) in as lieutenant governor. to a grand jury. By mid-August, it was The trial lasted for almost three rumored that Villagomez had been weeks and incorporated some defense arrested at a convention of lieuten- techniques that will probably go ant governors in New York. This down in the annals of jurisprudence was denied by the administration of as very unconventional. The first Governor . However, by was the “mango defense,” in which Monday, 14 August, both local news- one defense attorney, in his closing papers had front-page articles about remarks, faced the jury from behind a the arrest and indictment of Villago- podium and pulled out two mangoes. mez, his sister Joaquina Santos, and He presented them to the jury and said Secretary of Commerce James Santos, that the one in his right hand was a who is married to Villagomez’s sister. Hayden mango, which was imported Also arrested was Tony Guerrero, from Hawai‘i. In the other hand, he who was cuc executive director at the held a carabao mango, which was time, having succeeded Villagomez. grown locally. The local mango was, Tony Guerrero immediately accepted a of course, sweeter than the imported. pol i t ical reviews • micronesia 145

This was a veiled reference to the fed- sized generators were transported to eral court and the prosecution being and brought on line to relieve a foreign agency and the defendant a the pressure on the old mainline local person. Another defense lawyer generators while repairs and mainte- showed a PowerPoint presentation, nance were being made. Brownouts which, after describing the female fbi and blackouts became fairly rare, and agent who was the main investiga- work on the cuc generators proceeded tor for the prosecution as probably a rapidly. It is expected that the Aggreko very nice person, included a photo- company will soon return the genera- graph of a snarling wolf looking out tors to Singapore. Restoration of full of the screen and a wolf howling on local power is anticipated for late the soundtrack. This was meant to September 2009, since no notice of characterize the key fbi investigator as extension has been given to Aggreko. a wolf in sheep’s clothing. In spite of The Marianas have also been very these antics and many others, the jury fortunate in avoiding any major took only four hours to return guilty storms or typhoons during this period. verdicts on all charges for all three In the meantime, the utilities corpora- defendants. Sentencing was originally tion remains under strong pressure set for 28 July 2009 but has been from the US Environmental Protec- rescheduled for 5 August. Sentencing tion Agency to improve the quality for Tony Guerrero took place on 21 of water supplies, which fall below June; he received three years proba- federal standards. tion, 500 hours of community service, It was announced last year that the and a $6,000 fine. On conviction, US federal government would take Villagomez formally resigned from his over control of immigration opera- position as lieutenant governor. tions in the commonwealth by 1 May In the meantime, the defense has 2009. An additional six months of been filing motions with the federal transition time was later established court, charging judicial misconduct so that the law would not become and jury tampering, among other effective until 28 November 2009. things. Defense attorneys want the The extension was to give time for guilty verdict overturned by the judge both Homeland Security and com- or a new trial, neither of which has monwealth authorities to develop been approved as of this writing. policies and procedures adapted to the In August 2008, Saipan was experi- commonwealth. It was also mentioned encing massive power-supply problems that the takeover would not be com- throughout the island. In September, plete until state-of-the-art installations cuc Executive Director Tony Muña at ports of entry were established on (appointed to replace Tony Guerrero each of the main islands. This includes after his indictment) received authori- the three airports and three seaports. zation from the CNMI executive and However, no appropriation had been legislative branches to enter into a made for this in the federal law. As one-year, $500,000 a month, contract of this writing there is considerable with Aggreko, a Singapore-based uncertainty as to how all this is going generator company. Fifteen container- to play out. Several issues related 146 the contemporary pacific • 22:1 (2010) to federalization are yet to be fully twenty years. Since naturalization resolved. was not permitted under the CNMI Since 1978, during the years the Covenant, they remained in the com- CNMI government controlled immi- monwealth with the citizenship of gration, a major effort was made to their original country. However, over attract tourists from mainland China the years, these foreign workers have (primarily for the Tinian Dynasty had children who are US citizens by Casino) and from Russia. No US visas birth. Uncertainty exists over how were required, which led to a signifi- these families will be treated under US cant growth in that traffic. Russian immigration law. There are indica- tourists in particular came in families, tions that all contract workers must stayed for three or four weeks, and leave by 28 November and will not be spent very lavishly. Several major allowed back without a US visa. Many resorts hired Russian-speaking staff people are worried, afraid of having and printed menus and hotel informa- their families torn apart. One of the tion in Russian as well as Chinese. The side effects of this particular issue is commonwealth is requesting tourist the organization of long-term residents visa waivers for Chinese and Russian into advocacy groups attempting to visitors, but it appears at the time of influence the US Congress and the this writing that the Department of Department of Homeland Security to Homeland Security is not going to per- grant special immigration status to mit visa waivers for these two nation- people who have been in the com- alities after November 2009. monwealth for at least five years, The entire economy of the com- have no police record, and are self- monwealth is dependent on imported supporting. Rumors abound, and the labor, currently recruited primarily wishful thinking of many contract from the Philippines, Bangladesh, and workers is that something will be done China, among other places. Up to to give long-term residents improved now, these workers were allowed into immigration status (permanent CNMI the commonwealth without visas, and residency, a green card, and a pathway for those with a valid work permit to US citizenship). This issue is also there were only casual airport con- very controversial at the federal level. trols. Requiring visas from US con- Meanwhile, Governor Fitial took it sular authorities will make recruiting upon himself to contest the authority new workers extremely difficult. There of the federal government to federal- is some talk of having transitional ize the immigration functions of the worker provision, to allow workers commonwealth and hired a private who are legally in the commonwealth Washington dc law firm to represent now to continue working until the him. The governor claims that no expiration of their contracts. New public funds are being used to pay for categories for workers may also be the lawyers, but a freshman legisla- determined for the Northern Marianas tor, Representative Tina Sablan, has only. petitioned the CNMI Superior Court, Many foreign (“nonresident”) under the Open Government Act, to contract workers have resided in force the governor to reveal the source the commonwealth for more than of his funding. The Open Government pol i t ical reviews • micronesia 147

Act requires government agencies Schools and Colleges (wasc), the except the legislature (which exempted accreditation agency for Northern itself when passing the law) to open Marianas College, downgraded the their files to citizens concerned about college’s status from “probationary” agency policies. Sablan claimed that to the most serious “show cause.” the contract with the law firm is This was the last chance for the col- subject to the Open Government Act, lege to achieve reaccreditation or and that the citizens have a right to completely lose its ability to continue know how much is being spent and accredited operations. The year was where the money is coming from. The characterized by frenetic activity at the Superior Court agreed with her and college to meet the wasc criticisms. ordered the government to produce The final report was submitted at the a majority of the documents solicited end of May 2009, and in early July, under the act. However, the govern- the college’s wasc accreditation was ment appealed to the CNMI Supreme restored for a period of three years. Court, which has taken the case under During this time, the college will have advisement. Representative Sablan has to show that it can maintain the stan- also succeeded in collecting enough dards established. Numerous actions signatures to put on the November are expected to take place beginning 2009 ballot a popular initiative that in October 2009, when another wasc would amend the constitution and visit to verify progress is anticipated. subject the legislature to the Open Operating under “show cause” status Government Act as well. Sablan has was a major handicap in the college’s been instrumental in revolutionizing recruitment of new students and in how the legislature works simply by the retention of current students who publicizing its daily and weekly calen- were afraid that they would not be dars and by asking for public hearings able to graduate from an accredited whenever appropriate. institution. Enrollment in the fall 2009 Related to the foreign workers semester will be a key to the survival issue is the goal of the commonwealth of the college. Already, a substantial to recruit foreign students from the number of faculty and staff have either Asian rim countries. The idea of been terminated or not renewed. Saipan becoming an educational hub As reported in last year’s review for students to get their first taste of (McPhetres 2008), the golf course American-style education has been on and facilities at Lao Lao Bay, previ- the planning board for many years, ously owned by the United Micronesia and mainland Chinese students cur- Development Association, were sold rently make up a significant number to Kumho Corporation of Korea, of Northern Marianas College foreign parent company of Asiana Airlines. A students. Requiring students to get major resort complex is under con- visas to enter Saipan will be a problem struction, and, with Asiana Airlines for many of them, and onerous federal being the only major scheduled airline regulations will probably discourage a serving Saipan from mainland Asia, it large number of potential students. is anticipated that the airline will be At the beginning of the year under anxious to fill up the hotel. This could review, the Western Association of be a major shot in the arm for the 148 the contemporary pacific • 22:1 (2010) tourism industry. A regionally owned bookstores and “interactive” karaoke resort with properties on Guam is bars and nightclubs) to areas on going to build a hotel with 1,000 Middle Road, from the Sugar King rooms, 400 villas, and associated golf Park to the intersection of Airport courses and other amenities (possibly Road. This is to be accomplished by including a hot air balloon launchpad) November. However, there has been on the island of Tinian. In spite of growing opposition from the estab- the gloomy economic situation, the lished businesses along Middle Road resort owners have assured the com- who are concerned that their property monwealth that they are going ahead values may be threatened if all of the with construction of the Gold Wings adult businesses are relocated to their Paradise Tinian Casino. The relation- area. Opposition from certain critics ship between this mega-resort and in the legislature feel that the people the military has yet to be established. are not yet ready for the impact of Another hotel has broken ground near zoning and the stringent requirements Paupau in the Marpi area of Saipan. that go with it. It is expected, however, This will be known as the Flame Sako that the effort will go ahead, resulting Resort and Spa. Finally, longtime in a much cleaner and more tourist- Saipan businessman Tony Pellegrino friendly atmosphere in the Garapan has introduced large-scale commercial district. shrimp farming, which appears to be Currently, there are approximately getting very good reviews. In addition two hundred establishments with to producing shrimp for local con- poker machines on Saipan, and every sumption, Pellegrino is also exporting village on Rota and Tinian has from to the military on Guam. one to twenty poker machines. The For the past year, there has been a governor recently vetoed a bill that history of commercial airline flights would have included these establish- between Saipan and Japan being ments in the zoning process, moving cancelled or reduced in number. them out of the villages to the islands’ Continental Micronesia stopped flying more central locations, which have from Saipan to Japan early in the year yet to be established. The gover- but has since reinstituted daily flights nor said his grounds for vetoing the on a temporary basis. Charter flights measure were that the machines are out of China have been restarted and, located within mom-and-pop grocery presumably, will continue on a weekly stores and laundromats, so these local basis until federalized immigration is families would suffer hardship if the implemented and visa waivers for Chi- machines were moved. nese tourists are no longer available. Pursuant to an agreement between A new zoning law will go into effect Japan and the United States, 8,000 by November 2009. A new director marines and as many or more fam- for the zoning board has been hired ily members and support personnel and is already at work. First on the will begin moving from Okinawa agenda is to clean up sleazy enterprises to Guam in 2011 or 2012. This will in the Garapan district by relocating create major infrastructural projects the adult businesses (eg, pornographic for Guam and, with the spillover pol i t ical reviews • micronesia 149 effects, the Northern Marianas. Bil- which is currently one of the more lions of dollars are committed to popular beaches at the Pacific Islands the construction of completely new Club. Only five veterans showed up infrastructure for the military areas on this time, compared to the hundred or Guam. Money will also be available more who attended the sixtieth anni- for development on Tinian, where the versary five years ago. No national military has a lease on 17,000 acres press covered the event in spite of its (about two-thirds of the island). Other vital importance to the conclusion of projects on Saipan and elsewhere in World War II in the Pacific. Normandy the Marianas are also possible. continues to overshadow the events of The military leadership has held the Pacific Islands. public meetings with the people of President Barack Obama’s fed- the Marianas to explain what they eral stimulus program has reached have in mind and to discuss the pos- the commonwealth, with millions sible impacts on the islands north of dollars being made available for of Guam. Some rumors have it that transportation projects, education, the military would like to take over and job- creation programs. The major the island of Pagan north of Saipan. problem is finding people who can Pagan was evacuated in 1980 follow- write grant applications and establish ing a volcanic eruption and has not realistic and dependable audit and yet been completely resettled, with a oversight capabilities. current population of approximately Because of continued failure on the half a dozen. The military already has part of the commonwealth administra- control of Farallon de Medinilla, a tion to deposit employer contributions rocky outcropping north of Saipan, into the retirement fund, as well as the which has been used for decades by stock market crash and a variety of the US Navy and Air Force for live other factors, the CNMI Government bombing and artillery practice. Tinian Retirement Fund is almost broke. will definitely see the development The legislature has authorized a bond of what is called a “soft base.” No issue for $200 million, even though permanent structures will be erected, the debt and unfunded liabilities total but there will be barracks, mess halls, over $500 million. It has reached a and administrative facilities to support point where the fund management is a firing range and various training not allowing people to cash out when activities. It is not yet known how this they retire unless their funding agency will impact the village of San Jose, but makes up the retirement contribu- it is clear that the infrastructure on tions, which have been unpaid for Tinian will require a major overhaul, several years. This is only one of the including wastewater control, drinking budgetary problems facing the com- water supplies, solid waste disposal, monwealth this year. The demise of roads, docks, and related projects. the garment industry has resulted in The sixty-fifth anniversary of the a reduction in funds available to the invasion of Saipan in World War II government by nearly 50 percent. At was on 15 June 2009. A small cer- the peak of garment production, gov- emony was held at the invasion beach, ernment revenues were approximately 150 the contemporary pacific • 22:1 (2010)

$260 million annually, now reduced to important for the future because it will about $150 million. This has resulted establish a reliable population figure in a large degree of deficit spending, for most purposes. At the present since the standard of living has not time, all decisions are being made on changed. the basis of the 2000 census, when the Major demographic upheaval has CNMI population was 69,000; a more taken place in the commonwealth realistic current estimate is between over the past year. In May 2009, the 50,000 and 60,000 people. minimum wage went up to $4.55 an One of the very positive events of hour. As a result, several small busi- this year was the swearing in of the nesses have closed, and increasing commonwealth’s first elected delegate numbers of people are leaving. The to the US House of Representatives last garment factory closed on Saipan on 6 January 2009. Former Executive in the spring of 2009, putting an end Director of the Election Commission to the garment industry, which began Gregorio Sablan was elected from a in 1982. At its peak, the island had field of seven candidates. He ran as an thirty-five factories, employing nearly independent candidate and has aligned 18,000 foreign workers, mainly Chi- himself with the Democratic Party in nese girls. Now the commonwealth Washington. He has also joined the is left with the shells of the factories, Hispanic Caucus, the their barracks, and ancillary facilities. Caucus, and several other subgroups Approximately seven hundred workers in the House. His major challenge remain behind seeking new employ- has been to change the image of the ment, afraid to return to their home- commonwealth that was created by lands because of money owed to loan association with , the sharks there. disgraced former lobbyist for the The island of Rota has lost approxi- garment industry in the Northern mately two hundred people (about 10 Marianas. percent of the population) with the Elections will be held on 7 Novem- cost-of-living increase due to rising ber 2009 for governor as well as minimum wage, utilities, and gasoline for all other officials of the com- prices. Most people have gone to the monwealth with the exception of the United States. There has also been an congressional delegate, whose elec- “undocumented” increase in enlist- tion must coincide with the federal ments in the US Army Reserves by elections. For the first time, there is a graduating high school students. provision for a runoff election if none Federalization of immigration of the candidates receives 50 percent controls could lead to another outflow plus one of the total votes cast. With because foreign workers must leave four sets of gubernatorial candidates, the commonwealth as their entry per- a runoff is almost a sure thing. Two mits expire. Since no data is collected Republican candidates, Heinz Hof- at the airports related to the departure schneider and , and of US citizens who are permanent their running mates squared off in a residents of the commonwealth, the primary election. Hofschneider was census of 2010 will be extremely declared the winner. In a rare show of pol i t ical reviews • micronesia 151 unity in the Republican Party, Babauta Line Islands (Pacific Remote Islands pledged his supporters to Hofschnei- Marine National Monument) and in der and promised not to run as an American Sëmoa waters (Rose Atoll independent. This defies all precedent Marine National Monument). for local candidates. Finally, various legal issues sur- In July 2008, a group representing rounding land use and ownership are the Pew Environment Group came to expected to heat up over the next two the Marianas to promote the des- years. At least one legislative initia- ignation of a marine monument by tive involving land is expected on the outgoing President George W Bush. ballot for the 2009 election. Under the In a very hotly contested campaign, current constitution, voting on any ini- pro-monument people campaigned on tiatives related to land is restricted to the basis of the economic advantages people of Northern Marianas descent of having a very valuable resource (nmd). A person with nmd status is protected and available for scientific defined as one “who is a citizen or research, which would aid reef pres- national of the United States and who ervation around the world and allow is of at least one-quarter Northern resource exploration at great depths. Marianas Chamorro or Northern The anti-monument group, led by an Marianas Carolinian blood or a com- unlikely consortium of indigenous bination thereof or an adopted child preservation leaders (fearful of losing of a person of Northern Marianas traditional fishing rights) and propo- descent if adopted while under the nents of resource extraction (includ- age of eighteen years. For purposes ing deep-sea mining interests) battled of determining Northern Marianas right up until the point when President descent, a person shall be considered Bush, on his last day in office, declared to be a full-blooded Northern Mari- the Mariana Trench a national marine anas Chamorro or Northern Marianas monument. Officially designated the Carolinian if that person was born or Mariana Trench National Marine domiciled in the Northern Mariana Monument, it includes the three Islands by 1950 and was a citizen northernmost islands of the Marianas of the Trust Territory of the Pacific chain (Maug, Asunción, and Agri- Islands before the termination of the han) and the Mariana Trench, which Trusteeship with respect to the Com- stretches from the Northern Marianas monwealth” (CNMI lrc). In prepa- to just south of Guam. Instead of the ration for the election, the Board of originally proposed two-hundred-mile Elections is issuing affidavit forms to exclusive economic zone around each all registered voters who claim nmd island, a fifty-mile limit was estab- status. The forms require people to lished. All parties have supported this declare under pain of perjury that they compromise and look forward to the are qualified under the constitutional construction and establishment of a nmd definition. In anticipation of marine research center on Saipan and potential constitutional challenges to assistance by the coast guard in patrol- restricting the vote to people of North- ling the area. Similar monuments were ern Marianas descent, everyone will established at the same time along the be allowed to vote during the election. 152 the contemporary pacific • 22:1 (2010)

Those with nmd status will cast their ing voting on land issues to persons ballots in a separate nmd box at each of Northern Marianas descent is polling place, and if the constitutional- expected to be filed sometime in the ity of the restricted voting is upheld, near future, in hopes of resolving that only their votes will be counted. issue before the 2011 vote on amend- Related to the above issue are prep- ing the land alienation clause. arations for 2011 when voters will samuel f mcphetres have the opportunity to amend, repeal, or retain the land alienation clause of the constitution (article XII), which References restricts landownership to persons of Northern Marianas descent. Article CNMI lrc, Commonwealth Law Revision VIII of the CNMI Covenant provides Commission Web site. CNMI Constitu- for this opportunity, and, even though tion. http://cnmilaw.org/constitution.htm the vote is not until 2011, the debate McPhetres, Samuel F. 2008. Micronesia has become very heated. Free-market in Review: Issues and Events, 1 July 2007 proponents want to at least amend the to 30 June 2008: Commonwealth of the article to allow for longer-term leases, . The Contem- but certainly prefer to have it repealed porary Pacific 21:132–136. completely; they are lining up against cultural preservation parties who feel that landownership should be retained Republic of Palau in the hands of the indigenous people as a gesture of respect for their culture. The major issues and events for the However, since nmd status (and hence period under review were the cam- land rights) are legally determined by paign and election 2008; the peaceful the 25 percent blood quantum, large- transfer of power to a new president scale intermarriage between different and his work; the efforts of the Palau ethnicities has diluted the indigenous National Congress (Olbiil Era Kelu- population to the point where a lau, or oek); events in Koror; allega- significant number of people who tions of corruption; an update on the currently qualify as persons of North- Pacific Savings Bank (psb) failure; and ern Marianas descent are concerned Palau’s relations with Taiwan, the about not being able to pass on their United States, and Japan. land to their children. Also, high on With President Tommy E Remenge- the pro-repeal agenda is the increasing sau Jr ending his second term in office evidence that foreign investment has in January 2009, the presidential field not reached its potential in the com- was wide open, and four candidate monwealth because investors cannot teams emerged, as indicated in last own the property they want to invest year’s review (Shuster 2009). The in. At most, a fifty-five-year lease is primary election of 23 September currently available for private land. 2008 witnessed a 66 percent voter This argument is particularly acute turnout (9,295 voters). The team of given the current economic status of Vice President Elias Chin and Senator the commonwealth. A legal challenge Alan Seid finished strongly, taking first to the constitutional provision limit- with 3,027 votes, ahead of attorney