FLASHBACK March 26, 1999-2002

CDA warned of bad loans
[/B] As the Commonwealth Development Authority remains the biggest source of financing in the Northern Marianas, a financial expert has urged CDA to reduce delinquency ratio by making sure that it only provides quality loans. An analysis on the CNMI’s financing needs by David Burger, director of Burger & Comer, a public accounting firm, revealed that CDA has lent out over $46 million from 1986 to 1997, a huge chunk of which was granted to consolidate the various debts of a long-established company. Burger made a comparative analysis of the finance conditions and needs in the CNMI and Guam during last week’s economic conference. During the economic boom on the island, a huge amount of loans to build apartments were made, an area which Burger believes the authority should not focus on. CDA’s third biggest category of loans was in fishing where it encouraged entrepreneurs to pursue this type of business.

The House Committee on Health, Education and Welfare cast doubt on a set of credit cards issued to the Northern Marianas College, while shedding light on the two student financial grants at the resumption of its two-months long oversight hearing yesterday. Committee chair Rep. Heinz Hofschneider began its inquiry on the Visa cards provided by the Bank of Hawaii under the name of NMC President Agnes M. McPhetres, which are being used by the college for purchases of some of its supplies. While the panel has yet to categorically rule the transactions as violations of existing government regulations, Hofschneider asked college officials to hand in documents pertaining to the credit cards, including bank statements and accounts balance.

Efforts intensify to stave off federal takeover[/B]

Local leaders will strengthen their relationship with the federal government in attempts to block the passage and implementation of a renewed proposal in the US Congress to strip the CNMI of its immigration and labor controls. Commonwealth officials are, in fact, planning to meet with newly-appointed officials in the Bush Administration who have direct oversight on American insular areas including the Northern Marianas. House Speaker Benigno R. Fitial disclosed concrete plans to meet with Interior Department Secretary Gale Norton and other US officials in the American capital, Washington DC including Rep. Tom Delay, a long-time ally of the Commonwealth.

A testimony delivered by a witness in the trial of convicted drug-trafficker Leo S. Pangelinan yielded a list of alleged drug suppliers who may already be facing probe by federal and local authorities. Sonia Belyeu, an admitted drug user and former business partner of Mr. Pangelinan, dropped a string of names whom she claims were part of a hand-to-hand distribution of controlled substances. Police Commissioner Charles W. Ingram Jr. has requested the US District Court for a copy of Ms. Belyeu’s controversial testimony, where she incriminated police captain Delbert Sablan’s alleged involvement in the illegitimate business operation.

1 applying, 2 inquiring about college licenses[/B]

Three entities are seeking postsecondary licensure advice from the State Board of Regents amid plans to offer college-level and other educational courses in the Northern Marianas. The Joy Pacific International University, the American World University International Inc. and the CNMI-USA International Business and Professional College have signified interest to establish postsecondary institutions in the CNMI. But among the three, only Joy Pacific has submitted an application for postsecondary license, according to BOR Special Assistant Vince Merfalen. American World and the CNMI-USA IBPC are only seeking the BOR’s determination whether they would need to acquire a license to kick-start the programs they plan to offer. After sitting through the Eucon International College’s controversial licensure application, BOR Chair Fermin M. Atalig offered a piece of advice to the prospective applicants.

The Commonwealth government urged all department heads to refrain from unnecessary spending in light of a recent executive order that reduced the quarterly allotments of all government agencies. In a memorandum issued to all agency heads, the Babauta Administration ordered the Office of Management and Budget and the Department of Finance to closely monitor the overall financial situation of the government. The administration, through a memorandum issued by Lt. Governor Diego T. Benavente when he was still acting governor, also noted that funds may be reprogrammed when the need arises.