New bill to address CDA problems

It is unfortunate that I was off island last week and unable to respond to the allegations hurled by CDA against me regarding my relationship with them and that of unnamed family members of mine, although I believe the timing may have been deliberate. For the record I have NEVER received one dime from CDA. In fact it is CDA that has benefited from our relationship, receiving one and a half percent interest off a loan I have with the Bank of Guam in return for their acting as a guarantor. While I am not comfortable having to publicly disclose my personal financial situation, CDA has left me with no choice with their attacks. As for my relatives, I have no knowledge of first cousins with CDA loans and apologize to my family for having been dragged into this mess. However, if it were true that some of my family members have CDA loans, and they may be at risk of default, I would encourage them to work at becoming current with their payments.

CDA’s blatant attempt to derail legislation through political maneuvering is shameful. If the CDA board had concerns with S.B. 14-48 they should have come directly to my office and lobbied against the bill. My door is always open and I will always listen to the concerns of government agencies and the public. But to resort to these types of tactics is completely uncalled for.

The original intent of S.B. 14-48, as introduced by Senate President Adriano, was admirable and I applaud him for his attempt to provide relief to members of the local business community. The bill was originally intended to force CDA’s hand at working with troubled borrowers and finding a creative yet fair solution to their financial setbacks. Unfortunately, this idea was taken too far in subsequent versions of the bill, taking what was a good idea and turning it into something that may have set a bad precedent and been unfair to those who have worked hard to diligently repay their loans on time.

I have heard and understand the input from our local businessmen and women, and at this time do not foresee an override of the acting governor’s veto. I do, however, see the introduction of a new bill, which will adequately and fairly address the problems within CDA and their lending practices. It is my hope that CDA will be able to refocus their efforts on providing technical and financial assistance to our local businesses and establish a more thorough screening process for future potential borrowers.

Lastly, I welcome a response from CDA and its board of directors.

Sen. Diego M. Songao (Rota)
Capitol Hill