Flashback February 21, 2000-2002

U.S. -GAO report defies OIA findings[/B]

If it is any consolation to the harsh accusations hurled by the federal government against the Commonwealth’s heavy reliance on foreign labor, the United States General Accounting Office has reported positive developments in the CNMI economy buoyed by the presence of guest workers in the islands. A February 2000 report prepared by the U.S.-GAO said the presence of foreign workers in the islands has been directly and indirectly paving the way for the continued survival of the government and businesses in other sectors. The GAO report questions findings by the Office of Insular Affairs that the garment and tourist industries and the workers they employ require government spending for services and infrastructure that exceeds what they contribute in revenue.
[B] 1Q gov’t revenues up 10%[/B]

Fueled by slight improvements in visitor arrival figures and the continued growth of the apparel manufacturing industry, government revenues increased by 10 percent from $52.241 million in fiscal year 1999 to $58.056 million this year. Growth in this year’s first quarter government revenues resulted to a landmark reduction in outstanding budget deficit by $10 million, according to a report from the office of Gov. Pedro P. Tenorio. The report said Capitol Hill intends to complement the stable growth of the local economy with the continued implementation of policies aimed at eliminating unwanted government spending.

Finance told to produce missing tobacco money[/B]

The absence of available money due to the missing tobacco settlement funds yesterday forced lawmakers to delay action on the proposed creation of the Tobacco Prevention and Control Advisory Board. The finance department came under fire during the public hearing at the Senate Committee on Health and Welfare following the discovery that the initial $815,000 tobacco settlement was diverted to CNMI general funds. Assistant to Finance Secretary Robert Schrack received barrage of inquiries on why payments were deposited and co-mingled to the general funds when appropriations of tobacco settlement were already identified and recommendations were received by the upper house.
[B] Asian economic slowdown may hamper efforts to lure investors[/B]

Current economic conditions in major Asian countries may hamper efforts by the administration of Gov. Pedro P. Tenorio to lure more foreign investors into the proposed Northern Marianas Free Trade Zone. While Mr. Tenorio said a group of investors from Taipei has expressed interest in putting up investments here, he admitted that majority of businessmen were a little reluctant in branching out of Taiwan due to the regional economic slowdown. But the governor said there will be no letting up in efforts to promote the Free Trade Zone as an ideal place to do business, adding that the government will continue to look at other available means to attract more foreign investments into the CNMI.
[B] FEBRUARY 21, 2002

Ex-senator indicted for fraud[/B]

Two executives whose construction firms previously handled the controversial $2.7 million “60 classrooms project” for Saipan public schools have been indicted before the US District Court on 17 felony counts, amid allegations that they misspent funds meant for the undertaking. Juan S. Demapan, president of the locally-based Demapan Engineering and Construction, was arrested yesterday on charges of wire fraud, money laundering, making, issuing and negotiating false bills of lading and aiding and abetting. He will be arraigned today at 10:30am. Demapan, a former Senate President under the CNMI Legislature, made his first appearance before the federal court yesterday afternoon, after he surrendered himself to authorities in the morning.
[B] Customs revenue drops 27 percent[/B]

For the fourth month in a row, customs collection fell in January, this time by a whopping 27 percent when compared to the same period last year. Although collection figures from October 2001 to January 2002 showed no appreciable differences between them-averaging at $4.31 million a month-the same figures show a marked drop when compared to the collection figures of Fiscal Year 2000-2001, covering the same period. (See graph) According to Customs Director Joe Mafnas, the division collected a total of $4.142 million in January this year, which is slightly lower than the $4.332 million collected in December 2001.