NMI cost of business is astronomical!

It seems quite apparent that in our quest to encourage lasting investments, we openly neglect the cost of luring investors to sink their hard earned money in these isles. It is an embarrassing case of the right hand not knowing what the left hand is doing. And we flaunt it with acute arrogance like it’s going out of style.

Let’s take a quick review of the various hurdles investors–large and small–must overcome before they can even begin their permanent facilities.

• There’s the $100,000 deposit and the additional requirement that the business you’re building must be worth not less than $150,000. It is imposed on all foreign businesses while sparing local businesses. Discriminatory and a sure strangling law!

• Depending on the magnitude or size of your business project, you are required to go through the Coast Resources Management Office who in turn refers your proposal to the Army Corps of Engineers in Honolulu. This in itself is a lengthy bureaucratic process that also involves costly fees. Prospective investors are forced to retain local consultancy for environmental impact study, a legal firm, archaeological survey, etc. The cumulative cost in this aspect of the proposed project alone is not less than $1 million.

• Then there’s the requisite coursing of the proposed project through the Division of Environmental Quality (DEQ). While upper management may know their stuff, their lower echelon lieutenants are bent to put anybody and everybody through hell. They’re convinced that their posts grants them the godlike authority to impugn the letter of every single regulation, including those they concoct to substitute their lack of clarity of understanding of the regulations involved. They go about their work not as facilitators, but bureaucratic obstructionist in every sense of the word.

• You think you’re done? Not quite in that there are regulations to deal with from the Department of Public Works and the Commonwealth Utilities Corporation.

• Eh, the parade isn’t done as yet either after these two government agencies. If your project involves the use of public land beyond five hectares, you must genuflect to the whims of specific delegations, i.e., Tinian and Rota and you better be able to make Mr. Congressman and Mr. Senator “very happy”. And they know exactly how to route your tons of contribution in 50 gallon greenbags if, and again I reiterate, if you want your project to go through. A`Saina dios miho! I tell to you braddah, they sniff your greenbags better than K-9s!

Less than five are people of solid integrity who have dealt with this issue in recent years. Most were into the quiet greenbag race that were held “Behind Closed Doors”. And while at it, they add two more amendments to the 10 Commandments: No. 11: Do not get caught. No. 12: If caught, deny, deny, deny until you’re taken in by the FBI or until you die. A`Saina dios miho! It’s our corrupt version of public policymaking, eh?

You go to other places in the region and you need not go through the bureaucratic jungle we impose against current or prospective investors. You can do business on Guam and you need not even have to see more than one government official nor would you be required to bring in 50 gallon in greenbags to soothe the long faces of politicians sniffing if you’ve brought their share too. They have a mature understanding of the long-term benefits of lasting investments. And so they roll-out the red carpet to welcome you “home” for they too believe in wealth and jobs creation for their constituency.

How I wish we can emulate this positive attitude especially at a time when local government must now dip into rebate funds to meet payment of what’s due Earned Income Credit recipients. I’m nervous of what lies ahead and I seriously doubt that we can pull through as the deepening crisis slides even further into the abyss of more bankruptcies! Hello, anybody home?