Flashback March 22, 1999-2001

CNMI loses luster[/B]

Due to the instability of local laws and regulations, hotel presidents and general managers believe that the CNMI has become an unfavorable place to do business. This was the assessment made by hotel executives in a survey conducted by the Hotel Association of Northern Mariana Islands to find out how they look at the investment opportunities in the CNMI.

Tired of years of bickerings and disunity within the party, former Governor Froilan C. Tenorio officially resigned as a Democrat to prepare the groundwork for his reelection bid in the year 2001 general elections under a new political party.
A party member since 1979 when he first for the Senate, Tenorio wrote to former Mayor Jose Rios, acting chairperson of the Democratic Party, to inform him that he was terminating his membership.
[B] Study raises specter of soaring jobless rate[/B]

With the expected removal of trade quotas in the year 2005 by the World Trade Organization, the Northern Marianas will lose some 3,090 jobs annually, including 2,030 in the garment industry. Over a seven-year period, the CNMI economy would lose a net of 2,130 jobs per year. By the year 2005, the Northern Marianas would have roughly one-third fewer jobs than it does today.

House clears 2000 budget[/B]

The House of Representatives finally passed the much-delayed FY 2000 budget yesterday halfway through the fiscal year, agreeing to augment share of key agencies, including that of the Legislature, while slashing appropriation to several government programs. Education, health, and public safety will eat up nearly half of the $211 million proposed spending level as their funding have been increased by the House Ways and Means Committee.
[B] Legislature told to plug loopholes in retirement law[/B]

NMI Retirement Fund Administrator Juan S. Torres has asked the assistance of House Speaker Benigno R. Fitial in plugging the loopholes in the current retirement laws which has extremely affected the financial stability of the agency. While showing appreciation for the House Speaker’s gesture in assisting the Fund resolve this problem, Mr. Torres warned the Legislature against passing measures that will only contribute to the depletion of the agency’s assets.

Given the dominance of United States-based banking laws here, prospects are bright for the development of a finance-based activity in the Northern Marianas as efforts are being intensified to alleviate CNMI’s dependence on the highly-volatile tourism and garment industries. Being a U.S. jurisdiction, which is only at least three hours plane ride away from the heavily populated Asia, makes the establishment of a securities exchange bourse in the Northern Marianas feasible, commerce officials said.

CUC, Enron seals deal on 60MW power plant[/B]

After almost a year of tedious negotiation, the Commonwealth Utilities Corporation and Enron International Mariana Power Inc. finally closed the deal on the controversial 60-megawatt power plant project. Highly-placed sources disclosed CUC and Enron officials yesterday ironed out remaining concerns including power plant costs, negotiating terms and cost ratios.

A check on the Office of Public Lands revealed that a Japanese company has expressed interest in developing an abandoned hotel in Rota. Public Lands Administrator Bertha C. Leon Guerrero yesterday revealed her office has also received an inquiry to develop an area where the Pau Pau Hotel in Rota used to stand.

Measures to fortify safety enforcement at Saipan’s tourist zone are alive with proposals to allocate fresh funds from poker licensing fees for the construction of a temporary koban at the Garapan district. Rep. Heinz Hofschneider proposed that the Legislature appropriate a sum of $35,000 collected from the annual local license fee for poker machines under Saipan Local Law 11-2 for the said project. The legislation offers the use of the poker machine collection fees without fiscal year limitation. The Secretary of Public Works has been eyed to act as the expenditure authority for the funds appropriated under the proposed measure.