FLASHBACK May 21, 1999-2002

Wider tax exemptions get Commerce backing
[/B] Commerce Secretary Frankie B. Villanueva has expressed support for a plan by the Legislature to provide tax exemptions to businesses, which meet certain criteria to be imposed by the government in efforts to spur the local economy. Called the Qualifying Tax Certificate Program, the proposal is sponsored by Rep. Heinz Hofschneider to assist the private sector in dealing with the current economic crisis through a package of incentives. While the tax relief is similar to the proposed free trade zone in the Northern Marianas, Villanueva said the exemptions it offers are greater in value as it proposes up to 100 percent rebate. But the system of rebates and abatements “appears vague,” he said in a letter to House Ways and Means Committee chair Rep. Karl T. Reyes who is currently reviewing the bill.

Charges of bribery and misconduct in public office were filed yesterday against two officers of the Division of Customs for allegedly receiving payoffs for the illegal entry of taxable merchandise into the CNMI. Based on the information filed in the Superior Court by Kevin Lynch, chief of the Criminal Division of the Attorney General’s Office, Antonio S. Reyes and Benjamin S. Delos Reyes accepted the bribe from alleged smugglers in exchange for the release of such goods even without paying the corresponding taxes. Reyes and Delos Reyes were charged with one count each of bribery and one count each of misconduct in public office—criminal offenses punishable by up to five years imprisonment and a fine of up to $1,000.

Budget cut threatens five crucial programs in NMC[/B]

Funding allocation for the Northern Marianas College has been reduced by about 64 percent since 1999, which threatens continued operation of at least five of its educational programs, according to acting president Alvaro A. Santos. Mr. Santos criticized Public Law 10-66 which, he said, failed to adequately finance at least five educational programs currently offered at the College. Mr. Santos made the institution’s sentiments known through a letter to Committee on Health and Welfare Chair Malua T. Peter and Committee on Judiciary and Governmental Operations Chair Dino M. Jones.

Shell Guam, Inc. raised pump prices of petroleum products in all service stations in the Northern Marianas effective Sunday midnight, due to new rounds of oil price increases in the Singapore regional market. Car owners who gas up at Shell service stations throughout the CNMI will have to cough up an additional four cents for a gallon of regular and six cents more for a gallon of premium gasoline. Price of diesel, on the other hand, has been increased by one cent per gallon. “We have recently received a shipment of the higher priced product into Saipan and must pass on the costs while remaining competitive,” Shell Guam President Andrew Harford said.

Bank of Saipan opens today[/B]

The Bank of Saipan will open its doors today as banking transactions resume after a 20-day hiatus. However, the BoS, including its Tinian and Rota branches, will recommence banking operations on a limited basis, allowing depositors to withdraw up to $500 only or about 10 percent of each customers’ deposits. All banking transactions, including loan payments, deposits and withdrawals, will be back on track, Commerce Secretary Fermin Atalig said yesterday.

The legal battle over the issue of the Bank of Saipan receivership is heating up before the Superior Court, with lawyers representing the bank and the government filing one motion after another, swapping legal arguments, three weeks into this unprecedented debacle. Yesterday, the government, through Assistant Attorney General Allan L. Dollison, countered the BoS’ previous motion seeking the immediate removal of court-appointed temporary receiver Randall T. Fennell, asserting that the motion is “based upon incorrect factual assertions.” BoS last week filed an emergency motion to replace Fennell as receiver in fear of losing nearly all of its employees, who have vowed to resign if Fennell continued under such capacity.