Previous Story
AGO begins probe of consumer prices
|
Posted on May 28 1999
Backing move to probe consumer prices on the island, the Attorney General’s Office has assured legislators that an investigation has started into claims of excessive shipping charges by carriers serving the CNMI which may have pushed the cost of importing goods here.
But the AGO said it has met difficulties in pressing the matter due to the financial crisis that has prevented them from hiring outside lawyers who could help them bring the case to federal authorities as well as to the U.S. Congress.
“Outside counsel is necessary in this matter as the Attorney General’s office simply does not have the manpower or other resources necessary to pursue such a case,” said Assistant Attorney General David Lochabay in a letter Rep. Melvin Faisao.
The representative has asked the AGO as well as the Departments of Commerce and Finance to investigate shipping companies, wholesalers and retailers who may be responsible for jacking up consumer prices on the island.
Lochabay said they “share (the) concern about the level of prices in the Commonwealth, but the remedies available through our office at the current time are sharply limited.”
So far, the AGO has initiated talks with a lawfirm, Levinson, Friedman, Vhugen, Duggan & Bland, to represent the CNMI in court actions which the government would file against carriers serving the island.
This is the same firm that represented Guam in their lawsuits against these shippers before the Federal Maritime Commission and the Surface Transportation Board.
However, the lawyers disclosed that the CNMI could not take the same legal avenues and suggested that island officials bring the matter to the U.S. Congress which controls shipping rates here.
According to Lochabay, Guam has spent more than $6.5 million and has yet to gain ground from its efforts. “(T)he firm advised that congressional action would be the best, perhaps the only avenue of redress for the Commonwealth,” he said.
Alarmed by the disparity of consumer prices between the CNMI and Guam, Faisao maintained the investigation could address mounting complaints on the expensive products that have pushed the cost of living in the CNMI as one of the highest in the nation.
