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DFS makes its case as good financial partner of CPA
DFS Saipan president Marian Aldan-Pierce delivers her testimony at a Commonwealth Ports Authority public hearing last Thursday night. (Dennis B. Chan)
On the table is whether CPA should renew its master concession agreement with DFS or put it up for bid.
DFS made its case in its public comments, one of its points being that DFS has always met its financial obligations to CPA. DFS has always paid its rent on time, according to the comments.
CPA’s auditor has not cited DFS for any deficiencies or concerns, nor has CPA found good cause to undertake an independent audit of DFS, according to the comments.
DFS also provided evidence of revenue it has paid to CPA in the last three years in the amount of $7.63 million.
In 2013, DFS paid a total $2.98 million in concession fee, advertising, warehouse rent, and miscellaneous revenue.
Some $2.72 million of this was in concession fee revenue paid; $234,600 was in warehouse rent; $23,481.25 in advertising; and $5,270 under miscellaneous revenue paid.
In 2012, DFS paid $2.5 million to CPA. In 2011, DFS paid $2.15 million.
It paid the same amount in rent all three years. Around $20,000 was paid for advertising in 2011 and 2012.
Under miscellaneous revenue paid, DFS listed $13,325 for 2012 and $3,210 for 2011.
DFS also noted partnerships with CPA that called for investments not required by its concession agreement.
One example was in 2002, when CPA asked DFS to give over 1,000 square feet of its shop space to TSA. DFS gave this space without compensation or rent reduction, according to the comments.
