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Fitial: Lawsuit over LaoLao lease irresponsible, nonsense
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Posted on Nov 26 2008
Gov. Benigno R. Fitial described yesterday as “irresponsible” and “nonsense” the taxpayers’ lawsuit filed against him, the Department of Public Lands, and DPL Secretary John S. DelRosario over the lease of 1.6 million square meters of prime public land to Saipan Laulau Development Inc.
“Irresponsible in a sense that it would drive away the anchor investor that we have,” Fitial told the media.
Fitial said this investor, Kumho Holdings (H.K.) Co. Ltd., is not only bringing in condominium investment that would enhance the CNMI as a tourist destination, but it is also bringing in tourist dollars because they transport visitors from Asia to the CNMI.
“This is going to be very, very seriously considered. You don’t drive an airline out of the CNMI when we are in a devastated mode in our local economy,” he said.
According to the lawsuit filed by Ramon M. San Nicolas, Vicente C. Aldan, Tarsicio Olopai, and Juan M. Deleon Guerrero, the Commonwealth people will lose a minimum of $16.6 million for the full 40-year term of the lease agreement.
The plaintiffs, through counsel Edward Manibusan, challenged the legality of the lease, saying its terms are not commercially reasonable, contrary to the public interest, and are in violation of the CNMI Constitution.
Fitial hopes that the plaintiffs will reconsider the lawsuit because it will have a very negative impact on the economy.
“They are counting on chicks that have not been hatched!” the governor said.
He said he is very confident that the lawsuit will not prosper in court because “it is not only irresponsible but nonsense.”
With respect to the alleged $16.6 million that the CNMI will lose, Fitial reply: “It’s stupid to be talking about something that does not exist.”
