FLASHBACK – Dec. 28, 2011

Governor wants power project delay resolved[/B]

Gov. Pedro P. Tenorio yesterday sought the speedy resolution of the dispute over the stalled $120 million power project designed to increase the energy capacity of the Commonwealth Utilities Corporation in order to avert severe power outages. Describing the power situation as critical, the governor pressed officials of the utilities company to meet with the Attorney General’s Office to find ways how the power expansion project could proceed expeditiously. According to Tenorio, he is worried that failure to build the new power plant, whose construction had been initially scheduled to begin late last year, could cripple power supply on the main island of Saipan.

The Tinian Legislative Delegation yesterday pledged some $3.5 million funding to expand the existing runway at the West Tinian Airport in a move to save the financially troubled Tinian Dynasty Hotel & Casino. In a meeting with the Commonwealth Ports Authority officials, the Tinian Delegation noted that the Federal Aviation Administration’s funding did not cover the airport’s full expansion program which is estimated to cost $24 million. Tinian Dynasty has blamed the failure of the CNMI government to carry out its commitment to expand the West Tinian Airport runway as the main stumbling block in increasing visitor arrivals on the island.

SGMA seeks passage of anti-double taxation bill[/B]

The Saipan Garments Manufacturers Association has thrown its considerable weight behind the bill that would eliminate double taxation on businesses, saying the measure safeguards the CNMI government’s original guarantees to the apparel sector. In a letter to Gov. Pedro P. Tenorio, SGMA Executive Director Richard Pierce reiterated the group’s support for House Bill 12-391-both for its intent and for the legislation itself. “We strongly encourage you to sign House Bill 12-391. This protects original commitments and representations made in the mid-1980’s to the apparel sector, as well as safeguarding existing revenue sources,” Pierce said.

U.S. Labor Secretary Elaine L. Chao has filed before the U.S. District Court a civil complaint versus two San Antonio-based firms on allegations that the business entities, under a joint venture capacity, failed to compensate 15 employees the overtime pay due them. U.S. Labor, through its trial attorney Barbara A. Matthews, is seeking to collect from New Saipan Development Inc., Royal Crown Insurance Corp. and two of its executives, Cheong Pui Ng and Kang Ho Yu, back wages and liquidated damages. In the event that the court does not award judgment for liquidated damages, the plaintiff expressed willingness to settle for an alternative: The recovery of judgment restraining the defendants from withholding payment of unpaid overtime compensation, in addition to pre-judgment interest.

Agreement requires CUC to waive 50 percent of govt’s utility bill[/B]

The Memorandum of Agreement signed between the Commonwealth Utilities Corporation and the Commonwealth Development Authority requires that the CUC waive 50 percent of the CNMI government’s unpaid utility billings outstanding as of March 31, 2002. “Creditor will waive all accrued interest owed by debtor and, in return, debtor will waive 50 percent of the CNMI government’s unpaid utility billings,” the MOA stated. It further noted that the “Debtor and the CNMI government will negotiate a mutually acceptable payment plan for the remaining 50 percent.”

Gov. Juan N. Babauta has re-nominated Roman Tudela to sit in the Commonwealth Ports Authority Board of Directors, after the Senate Committee on Executive Appointments and Government Investigations failed to act on his confirmation within the 90-day period, which lapsed last Dec. 22, 2002. The Governor re-nominated Tudela to represent Saipan in the CPA Board through a letter to Senate President Paul A. Manglona. If confirmed, Tudela would serve a four-year term. “I am confident that Mr. Tudela is qualified and will be a valuable asset on this vital Board. I respectfully request your favorable action on his nomination,” Babauta told Manglona in a letter.