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Teno rules out tie-up with Telesource
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Posted on May 14 1999
Gov. Pedro P. Tenorio yesterday rejected plans for a possible joint venture with Telesource CNMI Inc. for the acquisition of two vessels from the financially-troubled Tinian Shipping Company Inc., saying that ferry operation is best left to the private sector.
The governor also explained that the tight financial condition of his administration makes it impossible for the Commonwealth to undertake such major buy out.
“We are not in the position to invest money,” Tenorio told an interview. “I would rather see the government not involved in this private undertaking.”
The Tinian Shipping, which is facing confiscation of is two boats, is in desperate bid to dispose the vessels it acquired for $10.8 million in 1997 in Singapore through Debis Financial Services Inc.
The shipping firm, a subsidiary of the Hong Kong Entertainment (Overseas) Investment Ltd. which operates the Tinian Dynasty Hotel and Casino, was however accused of Debis of failing to pay $7.6 million in borrowed plus interest.
Administration sources said Telesource is hoping to convince the cash-strapped government to jointly run the ferry service.
But Tenorio said he has ordered the Commonwealth Ports Authority and the Tinian Mayor’s Office to explore ways to assist Tinian Shipping to ease its financial burden without having to be involved in the boat purchase.
“The government is here to provide service to them,” he said.
