FLASHBACK February 17, 1999-2003

Reyes urges Tenorio on garment-cap bill[/B]

The chair of the Senate Fiscal Affairs Committee yesterday urged Gov. Pedro P. Tenorio to sign the garment cap measure pending before his office to help alleviate the tight financial condition of the CNMI government following continuous drop in revenues. Senate Floor leader Pete P. Reyes maintained the proposed law will generate at least $2 million in additional income for the public coffers which can fund critical agencies in the commonwealth. Likewise, the senator frowned on Tenorio’s plan to implement fresh cuts in government spending, including layoff and pay reduction of government personnel, when the administration has yet to exhaust all means to shore up the dwindling revenues.

The Office of the Attorney General has warned the public against the purchase of a fake credit card from a Texas-based company which has victimized a number of people since 1996. Credicorp.Inc. of Dallas, Texas has been offering consumers a pre-approved solicitation for a 12 percent gold card with a credit line of $10,000 or more for only $30. “It is a rip-off. It is not a master card, a visa card or an American Express card, just a gold card. You cannot use it unless the supermarket has some kind of an agreement with the company,” said Assistant Attorney General David Lochabey. What made the Credicorp offer questionable was the fact that it even accepted consumers who are on the verge of bankruptcy, according to Lochabey, who handles consumer issues at the Attorney General’s Office.

OPA chides CDA for costly renovation[/B]

The Commonwealth Development Authority has allegedly failed to observe prudence as called for by the government-wide cost-cutting program in the renovation of its building in Gualo Rai, according to a preliminary report prepared by the Office of the Public Auditor. According to the draft OPA report, renovation of the structure along Middle Road will eventually increase CDA’s monthly rental of the property from $8,000 to $13,489, or a difference of more than $5,000. However, if CDA occupies the building only during the present lease term and does not exercise the five-year option, rental may increase by $19,212 per month to $27,212.

The CNMI government has selected the San Francisco-based architectural and engineering firm of Hellmuth, Obata & Kassabaum to design the proposed $17 million corrections facility. However, Rep. Heinz Hofschneider , chair of the Prison Task Force, said building a new prison is not the answer to the increasing criminality in the island. In fact, he said the government agencies and service providers must work together to overhaul the criminal justice system to make sure that the prison is not filled with inmates in a year’s time. The design of the 344-bed prison facility is expected to be completed in 12 months. Construction is scheduled to begin next year and will be completed in 24 months.

MPLA eyes high-rise buildings[/B]

The Marianas Public Lands Authority aims to move for the amendment of the Homestead Act so it could pursue new programs such as the construction of high-rise residential buildings rather than individual houses and lots to save land. MPLA commissioner Henry S. Hofschneider said this would call for the amendment of the law to avoid conflicts. “We’d use public lands fund to construct high rises for residential uses.We may need to ask the Legislature to amend the statute,” he said. The MPLA has two options in the construction and management of residential buildings. First, the MPLA may decide to build and manage the building. Second, it may build the building but turn it over to the Northern Marianas Housing Corporation for management. “We can construct and manage the housing ourselves, which is not our business, or designate public land for those buildings, and have the Housing Corporation manage it,” he said.