FLASHBACK February 23, 1999-2001

NMC board bypassed[/B]

The House committee on Health, Education and Welfare pounded on the controversial pay increase for few employees of the Northern Marianas College during the resumption of its oversight hearing yesterday, uncovering arbitrary decisions made without approval of the Board of Regents as well as actions contrary to existing laws Despite the austerity measures implemented by the government, the state college has continued to overshoot its budget in what HEW chair Rep. Heinz Hofschneider blamed to mismanagement of funds—allegations repeatedly denied by NMC officials. The hearing, the fifth in a series of investigation into the cash-strapped college and the government scholarship program in nearly a month, made several disclosures backing up the charges, including the hefty raise in the salary of some high-ranking officials.

A bill that will provide up to $3,000 in unpaid compensation and repatriation cost for nonresidents awaiting awarded monetary damages was signed into law by Gov. Pedro P. Tenorio in another attempt to soothe angry guest workers seeking back wages and derail a federal takeover of local immigration and labor. The measure, hastily approved by the Legislature and the governor Friday, was put into motion upon recommendation of Rep. Don Young (R-Alaska), chairman of the House Resources Committee, during his visit last week. A group of alien workers, mostly Chinese, Bangladeshis and Filipinos, told Young and members of the committee in a meeting that they have yet to collect unpaid back wages provided for in administrative awards.

Flat tax system eyed[/B]

The House of Representatives is now laying the groundwork for the creation of a body of finance experts that will be tasked to review and draw up recommendations to change the existing CNMI tax system, Speaker Ben Fitial revealed yesterday. Mr. Fitial cited the need to institute measures that would simplify the current personal and business tax system in the Northern Marianas which, he said, is too complex and complicated. He said, however, that the lower house would carefully approach any element of tax reform to ensure the government continues to generate the necessary level of revenues needed to efficiently carry out essential community and public services.

The widespread use by apparel and tourism industries of nonresident workers from Asia has nothing to do with the alarming unemployment rate in the CNMI as claimed by the U.S. Department of the Interior, according to the accounting arm of the U.S. Congress. The General Accounting Office disputes claims by the interior department that the high rate of unemployment among U.S. citizens is caused by the garment and tourism industries or the foreign workers they employ. “We found no data that support the claim that unemployment in the CNMI is caused by the garment and tourist industries or by their use of foreign labor,” the GAO February 2000 report said.

Cabrera gets 33-month jail term[/B]

Down to the final moments of his sentence hearing, former Finance Secretary Antonio R. Cabrera maintained yesterday his claim of innocence despite a jury verdict that convicted him guilty on three counts of theft before the US District Court. Finding the ex-government official liable to acts of theft concerning programs receiving federal funds, District Judge Alex R. Munson sentenced the 41-year-old defendant to two years and nine months incarceration. His 33-month jail term is to be followed by three years of supervised release. Further, the defendant has been ordered to pay $56,461.98 in restitution, a $15,000 fine, and $300 in special assessment.

Customs officials are eyeing the possibility that a syndicate behind intercepted mails containing drugs is using Rota as its transit point. This, following the apprehension of another mail from Philippines two weeks ago by customs personnel detailed in Rota. A routine inspection conducted by a postal office staff yielded another Christmas musical card containing five grams of Ice. Customs Director Jose C. Mafnas yesterday disclosed that security measures in Rota Postal Service had been beefed up following the continued arrival of cards from the Philippines since December last year.