Managaha bidder plans shares offering

The locally-owned Marianas Marine Management, Inc., one of the six companies bidding for the concession rights of Managaha Island, will sell $5 million worth of shares to the public if it bags the multi-million franchise deal as a way of encouraging indigenous people to participate in running the tiny resort.

Fifty thousand shares of stocks will be offered to the public at $10 per share to attract locals in the establishment of a “people’s corporation” that will participate in the biggest tourism venture in the history of the Northern Marianas.

However, each shareholder will only be allowed to keep a maximum of five percent of the total shares to ensure equal distribution of shares, according to JM Guerrero, president of MMMI.

Shares subscribers will be assured of return of investments equivalent to interest rates offered by banks for time deposits, Guerrero said.

He said more than 100 people have expressed interest in buying shares.

MMMI has proposed an $8.2 million franchise deal to the Board of Public Land to operate Managaha Island over four years to replace Japanese-owned Tasi Tours, whose lease agreement expired last September.

Pacific Development, Inc., Tasi Tours, Saipan Marine Tours, Inc., Robert J. Emmett and Managaha Island Trust Corporation are also competing for the concession rights of the popular tourist destination.

No influence peddling

In a press conference, Guerrero denied insinuations that incorporators of MMMI were behind a controversial legislation giving preferential treatment to corporations or individuals of NMI descent to develop Managaha.

The Legislature’s override of the governor’s veto on the proposal has drew angry protests from businessmen, who criticized the legislation as protectionist and anti-business.

According to Guerrero, a key supporter of Gov. Pedro P. Tenorio in last year’s elections and business partner of Tenorio’s son, Michael, MMMI’s board members include former Lt. Gov. Jesus C. Borja, who ran as independent in the gubernatorial race, and Juan S. Tenorio, chairman of the Commonwealth Development Authority who had openly supported the candidacy of former Gov. Froilan C. Tenorio.

“This is not a sweetheart deal as some people have tried to imply,” Guerrero said in statement, citing similar laws in the United States that give preference to local contractors whose offers are within 20 percent of the highest bid.

“This keeps the money at home in America. It certainly not protectionism,” he said, “Is it wrong to do it here in the CNMI?”

Tenorio said local businessmen are ready to take over Managaha from Tasi Tours as he criticized the past lease contract of the Japanese company which allowed it to operate Managaha in the last eight years for $4 million.

“Tasi had a sweet deal in 1990 at a time when the tourism industry was at its peak and got another four years for free since what they paid to MPLC was used to repair the dock,” the CDA chairman said, “Tasi made a lot of money but we’re not getting our share.”