Ayuyu open to negotiating payment plan

Commonwealth Ports Authority board chair Joe Ayuyu said from CPA’s point of view, Star Marianas Air, Inc. owes CPA money for the use of airport facilities. However, he says he is open to negotiating a possible payment plan as a show of good faith and willingness to move forward.

Last Friday, CPA held a special board meeting to discuss the controversial dispute between them and Star Marianas. The dispute has left the communities of the CNMI at the edge of their seats following Star Marianas’ notice of possible suspension of air service as a direct result of this disagreement.

Following the meeting, one thing was clear, CPA is adamant on collecting fees from Star Marianas as the Tinian-based inter-island carrier has allegedly refused to pay invoices for airport use fees dating back to October 2022.

“From CPA’s point of view, Star Marianas owes us. It’s simple. I have to say, I do recognize the contribution of Star Marianas to our island, they serve a vital role in providing inter-island transportation. I want to thank Mr. Robert Christian for that. However, doing that doesn’t mean [Star Marianas] can use the services of our island, for free. Its incomprehensible. It takes people to run the airport and [CPA] has to pay them. CPA doesn’t get any [subsidy]. I hope Mr. Christian will come to his senses. Nowhere in this world should a business be using a public facility and paying zero. It’s ridiculous. That’s my problem with Star Marianas,” Ayuyu said.

Ayuyu noted that in an effort to move forward, he is even willing to negotiate an installment plan or even a discount, pursuant to the entire board’s approval.

“I’m even opening to the idea of an installment payment, maybe a discount on what they owe us. I’m really flexible, of course with approval from the board of directors. The problem is there is no opening for me in these conversations because Star Marianas refuses to pay anything at all,” he said.

Ayuyu added that he is at his wits end stating that CPA has provided Star Marianas with all the details they’ve claimed to not have gotten as part of CPA’s recent letter demanding payment of $1.2 million in airport fees.

“The letter was accompanied by [invoices] regarding why we’re charging them the $1.2 million. Every charge is added up based on these invoices. SMA asked for details, I know we provided details, so I don’t know what else we can do. The case pending in court, that’s the same rationale he’s using not pay for fees dating back to October 2022. We’ve done everything we can,” he said.

Ayuyu, as a last-ditch effort to resolve the ongoing dispute, suggested mediation with a third party like Gov. Arnold I. Palacios or even the leaders of all CNMI islands.

“I approached Mr. Christian, when I first got on board in CPA, and I wanted to negotiate something where we all left happy so we can put this issue behind us and move forward. The first thing he did was present me a book stating CPA is not complying with Federal regulations and all that. If that’s the case, then we should sit down and identify these problems and possibly resolve them. The idea is to move on. I would hate to open another court case so I’m talking with the governor, who is trying to mitigate the issue, so we can come up with a compromise. I’ve tried everything I can, we gave him a letter, he refused to pay, and so my only suggestion is to work with the administration so we can talk with the leaders of the island. Mr. Christian has been very negative in terms of making even a $1 payment. Meeting with him will not result in anything, so we need a third party like the governor or the leaders of the island to step in,” he said.

CPA board member Ramon Tebuteb, for his part, remined Ayuyu to be cautious in terms of inviting CNMI elected leaders to mediate this sensitive issue.

“With all due respect, I appreciate the governor trying to help out in this issue. But I’m going to be extra cautious not to go that far until perhaps we get more legal guidance as…the issues now are similar to pending litigations. I don’t want us to say anything that could compromise the pending lawsuits. To be clear, our elected officials are immune. Our role in CPA is beyond elected officials because we can be held personally accountable. Elected officials can say whatever they want but, in our case, our fiduciary duty is much higher,” he said.

CPA is currently going through the standard process of demanding payment from Star Marianas and will respond to Star Marianas’ letter this week (should not payments be made).