Adriano say amendments killed the MRC bill

Senate President Joaquin G. Adriano expressed frustration over the failed Outer Cove Marina settlement agreement between the government and Marine Revitalization Corp.

“We just wanted to help save the CNMI government some funds. But we can’t do anything now,” said Adriano Friday.

The settlement agreement bill, which provides for an $800,000 initial payment to MRC and $2.2 million in deferred payments over 20 years, failed to secure the required legislative approval on time, resulting in the government being penalized by some $6 million.

MRC, which sued the government for various contract violations in 1999, had waited for the legislative action up to Nov. 30 this year.

The House passed the settlement agreement bill on Nov. 23 while the Senate approved it with amendments on Dec. 3.

Adriano said that when senate minority leader Pete P. Reyes moved for some amendments, “I told myself it’s dead and gone.”

Reyes, he said, moved to insert an amendment providing that the $800,000 be taken not only from the discretionary funds of the governor but also from that of Lt. Gov. Diego T. Benavente, who had actively lobbied the Legislature to pass the settlement bill. Other sources identified by the House were unspent capital improvement projects funds.

Since the Senate amended the bill, it went back to the House of Representatives for the lower chamber’s concurrence instead of being transmitted straight to the Governor’s Office for signing.

“Even the House had rejected that amendment,” said Adriano.

Reyes earlier expressed exasperation upon learning that he is being blamed for the failure of the settlement. He said that he has been consistent in opposing the agreement, which he considers a bailout for a private company.

He said that he initially pushed for the Outer Cove Marina development project but he said that the project did not follow the original plan.

“I supported the proposed plan which was worth $1.2 million. The proposal was for a 76-slip parking space and a floating dock. I found out that the pier was $3.8 million and with only 42 slips constructed. And it’s not floating. It’s stationary so I questioned that,” he said.

He said he opposed the settlement because it is a bailout. “I support investors’ entry. But when they come in and invest their money, they do it at their risk. That’s the case anywhere in the world. I don’t believe in the government paying it back,” he said.

The administration, however, maintained that the settlement agreement was not a bailout. It said that the settlement was necessary to protect the government from substantial loss of funds.