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Fitial extends the state of emergency at CPA
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Posted on Jul 14 2008
The Fitial administration has extended the state of disaster emergency declaration for the Commonwealth Ports Authority for another 30 days.
This is the second extension to the declaration, originally signed on May 13, 2008, to stave off technical default on CPA’s airport revenue bond indenture.
In his latest declaration, Gov. Benigno R. Fitial said “the emergency conditions that resulted in the [original declaration] still exist. Thus, ultimately, this declaration renewal is necessary to protect the health and safety of all CNMI residents and visitors.”
CPA remains without a functioning board of directors to run the agency. All of the seven board members have resigned, and only two appointees have been named to replace them. The nominees—former Sen. Thomas Villagomez from Saipan and Manuel Villagomez from Tinian—have yet to be confirmed by the Senate.
“I find that the resignation of all members of the board of directors of the CPA has resulted in an ongoing vacuum of leadership at the CPA,” Fitial said, repeating language in the order he signed last month.
“Lack of appropriate leadership brought the CPA to the brink of technical default on the March 1, 1998 indenture. Until strong and appropriate leadership is restored to the CPA board of directors the danger of technical default on the March 1, 1998 indenture will remain a significant risk to the CPA and the CNMI as a whole,” he added.
CPA was on the verge of technical default on its airport revenue bond when the governor took control of the ports authority last month.
On May 13, 2008, the governor issued an executive order placing the financially trouble ports authority under his direct control for 120 days. He also signed a separate order declaring CPA under a state of emergency for 30 days.
The Legislature has overturned the reorganization order, but the emergency declaration is keeping CPA under the Governor’s Office.
