Tinian Dynasty’s, call center’s QCs revoked

The qualifying certificates issued to Tinian Dynasty Hotel and Casino and the We Manage Call Inc. are now considered revoked following inaction by Gov. Benigno R. Fitial on the recommendation of the Commonwealth Development Authority.

The islands’ chief executive officer had 45 days to either sign or reject CDA’s proposal. If he fails to act within the given period, the proposal is deemed automatically approved.

CDA submitted on Dec. 22, 2008, the proposal to revoke the qualifying certificates of Tinian Dynasty and the We Manage Call, the company that promised to build the CNMI first call center.

Following the expiration of the 45-day grace period last Wednesday, press secretary Charles Reyes said yesterday that the governor did not act on both proposals.

“The governor has not taken any action on the QC…” he told Saipan Tribune.

According to CDA’s economic development analyst, the revocation was a result of “incompliance” by both companies on the requirements and conditions set in their approved qualifying certificates.

The government’s qualifying certificate program grants tax incentives of up to 100 percent in tax rebates for 25 years to investors who build, expand, and operate commercial projects in the CNMI.

CDA officials admitted that Tinian Dynasty was found not complying with tax issues, environmental concerns, and violating the American Disabilities Act.

The QC program was established by law in December 2000 which was amended thereafter and included a rollback provision that allowed existing tourism businesses on the islands to avail of the program, provided they pass the minimum requirement of $2 million investment and the business is in line with the tourism industry. Tinian Dynasty, in existence since 1998, was granted the QC through this provision.

Saipan Tribune learned that the following tax incentives were earlier granted to Tinian Dynasty: 100 percent abatement of BGRT in years 1-3; 50 percent abatement of BGRT in years 4-7; and 30 percent abatement of BGRT in years 8-10. It was also entitled to an abatement in its bar tax: 50 percent in years 1-7 and 30 percent in years 8-10.

We Manage Call, meanwhile, did not fulfill its promise to build the first call center business on island when it was granted the certificate in February 2006.

The proposed business was earlier projected to bring a cash flow of $98 million over 10 years to the CNMI. It promised to employ up to 200 people of which 90 percent were local residents. Based on the same plan, it was to begin operations with 30 people in December 2005.

Though the business owners purchased the Nauru Building as the site for its call center business, they later postponed developments and preparation due to the minimum wage hike and the then-pending federalization of the CNMI.