Happy birthday! Now your report card

It was a year ago that Gov. Benigno Fitial, after his 60th birthday come Nov. 27, implemented his brand of bipartisan leadership and austerity measures. Immediately upon taking office he exposed the fragility of our economy fabricated under the predominant rule of the Republican Party since the CNMI came into being three decades ago, and the emptied treasury due to the blatant disregard of fiscal responsibility of the previous GOP administration.

And?

So the governor turned 61. Same campaign promises, right? What has he really done for our community? Let’s take it step by step.

Governor Fitial first gutted the GOP appointees to boards, heads of agencies, hangers-on, do-nothing politicos, and in general cleaned house. In their place, he installed or recommended for various positions individuals with vast business experience and their support group, such as pro-business executives Juan Guerrero, MPLA chair and Chamber president; Jerry Tan at MVA; John Del Rosario at DPL (formerly MPLA), as well as many others. Business guys and gals that shall identify and help fix our long-ignored problems.

Did the exposure and the recommendations sit well with the new administration’s detractors? Uh-uh. From the lunatic fringes of Washington, to the disgruntled bowels of our congressional halls and departments, they fervently wish to spend-spend-spend. An old story we don’t ever want to visit again. No governor had the guts to do what he has done in the last year. And along with the new Legislature, approve a sensible budget of $193.5 million after uncountable years of daydreaming by previous elected officials.

Now let’s look at the bright side.

In my April 13, 2006, letter to the editor in the [I]Saipan Tribune[/I], I pointed out that in the space of only four months in office, Governor Fitial’s reputation, acumen and trustworthiness developed nearly four dozen potential (Asian) investors and positive activities that will propel our community from under the crush we now suffer. As listed then, the numerical worth in dollars and cents could be in the many billions of new money over the next several years. Can any other previous governor claim the same performance? Only if you lump the other five together, perhaps, and certainly never in the first four months of office, individually. Billions? C’mon, who cares? All our elected officials look forward to is retiring under the old, pre-Fitial Retirement Fund aegis.

So, has the claimed investitures our governor professed for our community been all smoke and mirrors in the last year? And has he actually brought in any money to alleviate our dilemma? Let’s take a look at what he’s actually done and you make up your own mind:

– DOCOMO’s $71.8M purchase of Hafatel, Saipancell and Guam affiliates.

– Sumitomo’s $25M investment in PTI.

– $150 – $200M Bridge Investment Casino (conditional license issued October 2006).

– $200M Cordish Casino (MOA with the governor March 2006).

– $150M Marianas Resort Casino (MOA with governor February 2006, ground breaking in April).

– Hollywood Park Casino (MOA with governor May 2006).

– $1M drydock facilities Tinian Shipping & Transportation Inc.

– $1M Taga Air new hanger at West Tinian International Airport.

– Tasi Tours’ new, expanded office and 10-year Managaha Island concession extension (affiliate of Japan Travel Bureau).

– $1M + By Pacific Resort Tomo Fund, Rota ˜ Eco Town to produce hydrogen (fuel) and a junior tennis facility.

– JAL to re-fly charter flights (Tinian) after last year’s pullout.

– $2.3M Wax Museum, Garapan (operational November 2006).

– $100,000 gift to PSS April 2006, a donation from the Suzuki Foundation. $5M Memorial Shrine on land donated by Governor Fitial’s family at Marpi.

– A Korean group spends $200,000 to refurbish their peace monument at Marpi.

– $10M Fresh Restaurant, opened April 2006, Puerto Rico – Japanese owned Marianas Development & Environment Inc., part of a package.

– $4M Marianas Shipyard – dry dock , ship repair and manufacturing facility at North Seaplane Ramp Tanapag Harbor.

– We Manage Calls – International call-center, Nauru Building. Originally disregarded by the previous administration, now in final stages of startup. (Governor Fitial granted them significant tax breaks.)

– MPLT $70M assets

– $400M Retirement Fund assets (Fitial rewrote the government’s financial obligation to the Fund to relieve the drain on non-existent revenue).

– $45.M indebtedness by CUC to CDA (an inherited problem) written-off with a forgiveness clause to investors. Bids out to interested parties (in the range of a $50 – $100M package).

– YCO’s new commercial building, Garapan.

– Mid-Pac $2M expansion, San Jose.

– TakeCare offers Asia Health Plan, Philippines office.

– U.S. roaming offered to “Impulse” subscribers.

– CTSI new training, fitness center.

– Paseo de Marianas Mall improvements.

– Port to Park pathway.

– Royal Palm Historical Park, Garapan.

– Calavera and other caves improvement.

– Susupe Lake Park development.

– Mt. Tapotchao cable car.

– Japanese language schools forthcoming.

(Note: The above are in the many millions of dollars and doesn’t include other building permits issued during Governor Fitial’s tenure.)

“Cover over” gift & estates taxes – $6.2M received by CNMI (approximately $35M now due, upwards to $60M.)

“Open Sky” Foreign Air Carriers—innumerable benefits once allowed to land in the CNMI (pending).

Greater Off-shore Rights (pending).

70/30 User Fee, garment industry (still pending now tenuous).

$140M U.S Bailout Package (unlikely as of October 2006, impetus still remains to secure critical monies for CNMI infrastructure, and not operations.)
[B] MEMORABLE EVENTS:[/B]

$500M unsolicited loan from Takuyo Industries K.K. April 28, 2006 (tempting but in conflict with government-to-government treaties).

$300,000 exposure by Shanghai Media Group of nine members visit in October.

”Miss Seoul” 2006 Beauty Contest, Saipan World Resort.

“Foolish My Love” Korean TV 2006 syndicated episodes.

(Note: Both previous events exposure-value is in the millions of dollars.)

First: Did you add up the monies invested in the CNMI?

Now: Where do we go from here?

Granted, we haven’t seen many of the others, the high-flyers listed in my April 13 letter, yet. At least not in enough numbers to quell the doomsday-sayers who continually lament, “Where are the investors?” The Consumer Price Index has shot through the roof on the tail of triple oil price increases. With the U.S. Congress under the control of the Democrats, the CNMI garment industry appears in jeopardy. Several island businesses have closed shop and other storeowners are holding on.

We are, however, experiencing a resurgence of tourists and interested parties in our economy’s growth potential, more pointedly from South Korea.

Thanks to the South Korean community and the Saipan World Resort’s astonishing promotional activities, the CNMI was treated to the “Miss Seoul” beauty contest, “Foolish My Love” syndicated television series, and appearances by dignitaries and the visiting groups and the various media agencies.

Governor Fitial’s special consultant Shigeyoshi Kato’s enormous influence has been the key factor for the substantial Japanese investments in the last year alone, as listed above. And counting.

What else is happening on Governor Fitial’s watch? Let’s look at the big, strategic picture for all of the Marianas.

– Nuclear Carrier Deployment – Pacific Region: No future guarantee here, but Lord if it does the Marianas will BOOM! The jury is still out whether the U.S. Navy will homeport a 6th nuclear aircraft carrier in the Marianas or Hawaii. In Guam’s favor is Rear Admiral J. Leidig’s recent declaration: “The expense of carrier group fuel is less costly from Guam, and sailing toward Taiwan and North Korea is more efficient.” To Taiwan, 2 days versus 7 days from Hawaii.

– Anderson Air Force Base – Guam: Beginning three years ago, bomb wings of B-1B and B-2, B-52 and fighter aircrafts are in stark evidence, along with their support services and fueling capabilities. The super-high tech Global Hawk surveillance aircraft has been requested for Guam. In addition to the 8,500 personnel on base, another 3,100 active duty members and their dependents from South Korea and Japan are slated for the build-up. The construction boom soon to come includes extensive infrastructure and support facilities of various kinds.

– The U.S. Marine Corp Redeployment – Marianas: That’s an $10.5 billion chunk of change, to re-position 8,000 grunts with 11,500 family members. Realignment between the U.S. and Japan has been realized. (In March 2006, Rear Admiral Leidig committed to at least 1,000 Marines to be deployed on Tinian by January 2007. On April 23, 2006, Japan agreed to pay $6.09 billion of that.) (In July 2006, rumors stated a battalion of Army troops may also be stationed on Guam.)

– Anti-Ballistic Missiles – Guam: Recent talks in April 2006 between Japan and the U.S. are considering the U.S. Patriot PAC-3 ballistics missile defense capability, part of the “US – Japan Roadmap for realignment implementation.” This comes on the heels of a commitment by Gen. Leaf of an additional 1,000 Army personnel to man the system.

So what? The spillover from the military buildup on Guam can only enhance our growth. When is all this to happen? As we speak. Will it happen? Definitely. Is the CNMI on the road to recovery? You answer that. And how does our future appear? See what 2007 brings.

At least now, you have a more accurate picture.