Flashback — Jan. 1999-Jan. 2001

CPA presses ahead with port fees hike[/B]

The Commonwealth Ports Authority will meet with the Legislature and airline executives this week to explain the urgency of carrying out a rate increase at the airport so that it can repay its $53 million debt. Carlos H. Salas, executive director, said he will discuss with officials of Continental Micronesia and Northwest Airlines on Guam the planned rate hike. A similar meeting was also held with Japan Airlines executives. A week ago, CPA officials led by board chairman Roman S. Palacios talked to Gov. Pedro P. Tenorio seeking his support on the rate increase. Amid mounting losses from its operation, Salas had expressed concern that the ports authority will not be able to meet the required 1.25 percent debt service requirement. If the ports authority fails to implement an increase, it will be forced to seek subsidy from the government to be able to pay for its obligations, he said.

The House of Representatives has set in motion an administration’s request to remove a retirement bonus given to civil service employees in fear the benefits may throw the cash-strapped government into deeper financial woes. A bill grandfathering those employees eligible to receive the bonus passed the House last Friday as members assured recent retirees that they will receive their money once the local revenue collections improve in the next few years. Rep. Heinz Hofschneider, author of House Bill 11-359, said the proposed measure will guarantee payment of the bonus equivalent to 30 percent of the employee’s annual salary at the end of his government service.

Debt-to-equity conversion for CUC’s $107-M loan eyed[/B]

The Commonwealth Utilities Corporation is hoping to retire its debt amounting close to $107 million through a plan which will be announced by next month as part of the efforts to forge ahead with the new power project proposal for Saipan. CUC Executive Director Timothy P. Villagomez has been tasked by the board to develop the scheme to wipe out its mounting financial obligations to the Commonwealth Development Authority. According to CDA Board Chairman John S. Tenorio, the government’s chief lending agency will propose a debt-to- equity conversion which will be more acceptable to them than other options, including debt forgiveness.

The Division of Environmental Quality is planning to seek assistance from the Legislature to acquire a laboratory equipment that will cut the huge cost of chemical monitoring of water systems in the CNMI. DEQ Director Ike Cabrera said the lack of necessary facility in Saipan prevents the agency from conducting the water analysis on 84 organic and 15 inorganic chemicals. DEQ would have to send its samples to a laboratory in California since its laboratory cannot carry out the analysis on pesticide and other industrial chemicals. Based on preliminary assessment, a brand new equipment will cost $100,000. But DEQ is looking at acquiring the second hand equipment for $50,000 from Guam.

House may accept changes to Kobler bill[/B]

The House of Representatives will likely accept amendment inserted by the Senate on the measure appropriating $2.4 million for the much-delayed Koblerville housing project when it resumes session on January 29. Acting Speaker Oscar M. Babauta yesterday assured he does not see any problem approving the rider to the House bill, saying “it will not necessarily impede the project or halt its construction.” During its session the other day, the upper house made a last-minute decision to insert a provision which commits $1 million in interest expected to be earned from the $60 million bond flotation of the Commonwealth Development Authority to be divided equally to fund capital improvement projects on Rota and Tinian.

Baffled over the legal definition of transporting betel nut locally and from outside places, the CNMI Food and Nutrition Council is seeking clarity to a pending issue stated under the Betel Nut Awareness Announcement. The Council is planning to release the announcement to the community. Chair Pamela Mathis said the Council is awaiting legal advise from the Attorney General’s Office on the lawful interpretation of transporting within the CNMI or other places betel nut for local consumption. “The legal edit involving the statement on the transportation of betel nut of persons entering the Commonwealth has not been clarified yet,” Ms. Mathis told Council members during a meeting yesterday.