Tinian asks U.S. to scrap debt

Lawmakers have appealed to the U.S. Department of Treasury for debt forgiveness amounting to $1.6 million which the Tinian municipality has incurred in connection with the drilling of water wells on the island.

The municipal government and the CNMI could face lawsuit from the U.S. Department of Justice to collect the debt as it continues to be behind in payment, according to a resolution adopted by the House of Representatives.

The Division of Debt Management under the treasury department had imposed a deadline of September 1, 2000 for Tinian to meet its installment for this year, but has yet to receive payment as of this time.

Last year, the Commonwealth Utilities Corp. paid $240,000 which the division considered as payment for 1999. CUC bought a well drilling equipment that was used in the project.

The U.S. Geological Survey undertook the drilling of water wells on Tinian from 1990 until 1997, but later called off the project after the municipal government failed to pay its contribution.

While the debt rose to $2.76 million due to interests and penalties for late payment, the island municipality was able to negotiate for waiver on those fees in order to bring it down to $1.59 million.

But Tinian officials maintained they still don’t have the money to meet its obligations to the federal agency, prompting them to seek assistance of local lawmakers to appeal on their behalf.

Rep. Norman S. Palacios, chair of the House Federal and Foreign Relations Committee and a representative of Tinian in the Legislature, offered House Joint Resolution 12-16 to persuade the Department of Treasury to write off the debt.

He said the island, as well as the entire Commonwealth, continues to suffer from serious financial difficulties as a result of the downfall in the tourism industry.

“[I]nspite of efforts to locate revenue sources from which payment could be made, such sources do not exist in the absence of depriving the people of the Commonwealth with necessary public safety, health, educational and other resources,” he stated in the resolution.

In exchange for the debt condonation, Mr. Palacios noted the “moral debt” to Tinian by the federal government since two-thirds of the island are leased to the Department of Defense providing a significant strategic asset to the United States.

It also played a significant role during World War II in defense of the Pacific from Japanese forces when it hosted American soldiers from where they launched the atomic bomb used in Hiroshima and Nagasaki, the lawmaker said.

Mr. Palacios added that unlike the mainland, CNMI continues to experience economic crisis due to dependence to Asian economies which have yet to recover from the crisis in 1997.

The people of the CNMI “consider themselves a part of the American family and able therefore to seek assistance from the federal government in areas of significant need,” he said in the resolution.