CDA gives Lady Kimberly 30-day deadline

The Commonwealth Development Authority has given a commercial fishing group 30 days to set up office in the CNMI and comply with insurance and financing letters requirement.

In a letter dated Dec. 1, 2005, CDA asked Lady Kimberly president Courtney Ziezke to provide information on its CNMI incorporation that would satisfy its residency requirement.

CDA, through acting executive officer Oscar Camacho, also asked the investor to submit a letter of commitment from a participating bank and an insurance policy that complies with the CNMI laws.

Department of Commerce economic development officer Glen Manglona said there is no problem with the CDA requirements except the letter of commitment from a bank.

He said it should be the CDA that should provide Lady Kimberly a loan guarantee that it could present to the bank.

“It’s the other way around with respect to commitment letter,” said Manglona, noting that Lady Kimberly has pending loan guarantee application with CDA amounting to $600,000.

Manglona reiterated the department’s support to the setting up of the fishing business and expressed hopes that CDA would see the potential of this venture “as we see it.”

“This investor is knocking at our door to invest. This company is creating a fishing industry here. The technological know-how this company will bring is worth million of dollars,” he said.

He said he hopes that CDA would invite the company representatives back for discussion.

“CDA should handle it in a more investor-friendly approach. What we’d like to see is for CDA to invite the principals back to the table to see where we can strike the balance here,” said Manglona.

He said with the establishment of the business, there is a potential for the CNMI to supply marine products to two biggest markets: Japan and the U.S.

He said that if the CNMI allows the company to leave, it can always go to other places such as Papua New Guinea and Alaska.

“Our office wholeheartedly supports this venture. I hope the CDA will see the way we see it,” said Manglona.

Earlier, CDA board chairman Tom Glenn Quitugua that unless the company submits all the requirements, its loan application would “remain under review.”

Meantime, Ziezke earlier said that it would name its business on Saipan as Marianas Fisheries Inc., which he said would be 51-percent owned by NMI.

He said his group would use two long-line fishing vessels, Hunter J and Captain Wade, which would be renamed as Lady Carolina and Miss Saipan.

Ziezke’s group plans to catch yellow fin tuna and skipjack about 35 miles to 200 miles off the shore.

This means, he said, that they would not be competing with the local fishers, who usually go no farther than 30 or 35 miles.

The local association of fishermen would in fact be a part-owner of the operations, he said.

Ziezke said the capital investment would exceed $2 million.

About $1.2 million of this would be loaned from Bank of Guam.

It is asking the CDA to guarantee up to $600,000 of its loan with the bank.