‘Worst time in CNMI history’

Not including the devastation caused by World War II, this may be “the worst time in CNMI history,” according to officials and residents yesterday as they called for both the Fitial administration and the Legislature to stop their name-calling and “making fun of the crises” and instead work together.

For the first time in CNMI history, a government instrumentality-the NMI Retirement Fund-has filed for Chapter 11 bankruptcy and a government hospital teeters on the edge of a shutdown.

This is on top of the 20-percent work hour cuts, power disconnection at some units of public schools and the hospital, a government budget that is down to half of what it used to be, political bickering that has reached fever pitch, and immigration woes that are hobbling efforts to reinvigorate the economy.

Gov. Benigno R. Fitial’s allies and foes at the Legislature agree on at least one thing: It’s time for the governor to face the public and make known his plan of actions to help stem the crises at both the Fund and the Commonwealth Healthcare Corp.

Among the longest serving lawmakers-Senate President Paul Manglona (Ind-Rota), Rep. Stanley Torres (Ind-Saipan) and Senate floor leader Pete Reyes (R-Saipan)-separately said the CNMI has gotten to its worst state since the war.

Manglona said it’s about time the House of Representatives act on a Senate resolution asking the governor to deliver a State of the Commonwealth Address.

“It’s the governor’s opportunity to step up to the plate and prove he means well and that he has plans for the Commonwealth as its leader,” he said.

Press secretary Angel Demapan said the “Fitial administration has hurdled many challenges since assuming office.”

“Governor Fitial remains committed to continue working with all stakeholders to address current challenges,” he added.

Fitial has never delivered a SOCA since he got re-elected and has only been sending financial reports to the Legislature every end of the year.

“The public needs to hear from the governor himself as to what the true state of the Commonwealth is and his administration’s plan,” said Rep. Ray Yumul (R-Saipan).

House minority leader Joseph Deleon Guerrero (R-Saipan) and others also called for the governor to deliver a SOCA and present his plan of action.

Reyes said most lawmakers want to work together with the governor but they want to know what his action plan is.

“There’s lots of interest for the governor to deliver a State of the Commonwealth address. This seems to be the appropriate time for that,” he said.

Reyes said the CNMI is at least “a bit lucky” that the Fund only filed for Chapter 11 bankruptcy and not for Chapter 7 or liquidation of assets, or receivership.

He, however, said the Fund should have at least told the Legislature about it prior to the actual filing because lawmakers have been working on bills to help the Fund.

Reyes said the Senate president also has bills and initiatives to help the Fund but most of these are just sitting at the House. One of these initiatives is the transfer of assets such as the Mariana House in Washington, D.C. to the Fund.

“Every little bit helps. They will all add up and we could fix the problems,” he said, adding that legalizing casino gaming on Saipan will help, albeit not immediately.

Reyes disclosed the possibility of having another House bill legalizing casino gaming on Saipan, and is challenging Rota senators to hold a public hearing on the bill on Rota. The Senate has already killed two House casino bills.

As of yesterday, Fitial said he does not favor an additional $7 million line of credit for CHC. That $7 million line of credit is contained in a “compromise” bill that House and Senate conferees are now working on to prevent a hospital shutdown.

Fitial also said he’s been working with the Fund and the Commonwealth Retirees Association to improve the defined benefit plan or possibly turn to the U.S. Social Security Administration.

He reiterated that he supports the Fund’s filing of Chapter 11 bankruptcy for restructuring, but he won’t support liquidation of assets.

To prevent another round of power disconnections in schools and the hospital, he has asked the Office of Insular Affairs again to reprogram some $3.5 million in capital improvement project funds, including those for the Puerto Rico dump closure, for utilities payments for CHC and the Public School System.

Fitial is also pushing for a fee simple acquisition of public lands by existing hotels and golf courses which he said could bring $300 million to $400 million in fresh revenues.

The governor is also pushing for the legalization of casino gaming on Saipan.

CRA board member and former lieutenant governor Diego Benavente said yesterday that the governor’s proposals could be worked had he stopped name-calling people and making fun of the crises and started working not only with the House but also the Senate.

“It’s called leadership,” he said.

Benavente said that if Fitial couldn’t even work well with his lieutenant governor, Eloy S. Inos, “then how could we expect the lawmakers and the public to work with him?”

Benavente asked retirees to call on Fitial to resign because of the Fund crisis, along with calling for the Fund trustees to also step down.

Fitial, in an interview yesterday, said Benavente should be “educated” and thinks Benavente “got contaminated with Tina Sablan’s disease, stomach ache” and should therefore also “drink milk.”

“He should be educated. There’s freedom of speech so I’m also invoking my freedom of speech,” Fitial said.

Benavente, in response, said the governor seems to always consider everything a “joke” and resorts to name-calling instead of responding with solutions to the crises.

“So there’s more reason for him to resign. He’s also responsible for not letting the Legislature and the public know about the Fund’s bankruptcy filing plan before they actually filed it. He knew about it,” he said.

Manglona pointed out that in other states and territories, governors would immediately face the public, including through televised address, every time there’s a major crisis that hits the area.

“But the governor is once again showing his lack of leadership,” he said. “I have been saying it all along that because the governor is not able to address the financial crisis at CHC, the Retirement Fund and PSS, he should step aside and let the lieutenant governor take over.”

Manglona said “never in the history of the CNMI has a government instrumentality filed for bankruptcy,” whether it’s for restructuring only or for liquidation.

“Unfortunately, this will go down in history as his legacy as governor. The governor has not been able to work with the Legislature to help CHC and the Retirement Fund,” he added.

Rep. Frank Dela Cruz (R-Saipan) believes, however, that no amount of SOCA would help.

“I think the people already know and feel the state of the Commonwealth and I don’t believe that any address by the governor is needed at this time. With regards to any action plans, I don’t believe there are any by this administration or the leadership of the House,” he said.