FLASHBACK – August 13, 2011

Fund’s overseas investments dive off-island portfolio lost $3.96 million in June[/B]

The off-island portfolio of the Northern Mariana Islands Retirement Fund went South this June, losing more than $3.96 million as the total rate-of-return slid to a negative 1.09 percent. As a result, the total losses incurred by the Fund’s off-island investments covering the period from October 1, 2000 to June 30, 2001, went up a notch to $38,269,516, representing a negative 9.61 percent rate-of-return from the start of the fiscal year. Based on documents obtained by the Saipan Tribune, the Fund’s money market portfolio stood at $359,976,526, as of June 30 this year-down from May’s $363,939,786-reflecting losses amounting to $3,963,260.

The Northern Marianas College projects a dramatic increase in the number of enrollees starting this academic year due to the anticipated entry of more nonresident students. The projection came following the NMC’s recent revision of tuition policy relating to nonresident students, which is expected to benefit at least 364 non-US students. With an annual enrollment figure of 1,659 students each year since 1994, the NMC anticipates over 364 nonresident students to benefit from the newly-implemented residency policy.

CDA loan delinquency at 83 percent[/B]

The delinquency rate on loans obtained from the Commonwealth Development Authority has reached an astronomical 83 percent, which will amount to millions of dollars in losses if the monies are not collected-a disastrous situation for the CNMI’s money lending agency. The CDA vowed to aggressively collect on bad loans, as it opposed proposals for a legislative measure that would seek to condone certain delinquent loans. Tom Glenn A. Quitugua, chairman of the CDA’s Development Corp. Division, said such legislative intervention would result in “financial disaster” for the CDA.

The total visitor arrivals into the islands last month sustained a trend of recovery for the CNMI’s tourism industry, posting double-digit percentage growth compared with the total visitor arrivals posted during the same month in the last two years. Marianas Visitors Authority Vicky Benavente also disclosed that new airlines plan to operate at Kansai Airport and the Central Japan International Airport in the coming months-developments that would further enhance outbound Japanese travel. A total of 47,442 tourists came to the islands last month, reflecting a 36.24 percent growth compared with July 2003’s 34,822. Compared with July 2002’s figures, the MVA said the current total increased by 24.09 percent.

‘Grandfathered’ alien workers can’t bring in family members[/B]

The bill that seeks to federalize CNMI immigration does not allow for those who meet the criteria for non-immigrant status to bring in other family members not currently residing in the CNMI, according to CNMI Resident Representative Pete A. Tenorio. Tenorio said the numbers of those who are qualified for non-immigrant status will not increase over what they are today unless the CNMI government allows them under local laws between now and the beginning of the transition period to bring in additional family members. “It (federalization bill) does not put them on a track to a green card or citizenship. It will not allow them to vote,” he pointed out.

Compelling long-term foreign workers to stay in the Northern Marianas for another five years once they get their nonimmigrant visa may not be necessary. After all, both S. 1634 and H.R. 3079, which seek to federalize immigration in the CNMI, address the issue of workers’ exodus, according to Department of Interior’s deputy assistant secretary for insular affairs David B. Cohen. “I’m not sure I understand what the five-year provision would accomplish. Both the Senate and House bills provided the CNMI with ample flexibility to bring in workers that are needed,” he said. The CNMI federalized immigration bill allows the CNMI to continue hiring foreign workers. This time however, the U.S. Department of Homeland Security will be tasked to administer the CNMI-only guest worker program.