Let’s take a look back at the top stories of 2023

IPI’s court battles, controversies continue

The court battles of troubled Imperial Pacific International (CNMI) LLC in several civil cases both in local and federal courts continued throughout the year.

In fact, just last Wednesday IPI, though its new lawyers, Stephen J. Nutting and Michael Chen, filed another civil case against the Commonwealth Casino Commission in federal court, alleging that CCC is taking a judicial role in interpreting the Casino License Agreement. This, according to IPI, essentially deprives the company of its U.S. and CNMI constitutional rights.

Tomorrow, Saturday, is the deadline for IPI to pay the $62 million in casino license fees it owes the CNMI government in the last four years. As of yesterday, Commonwealth Casino Commission board chair Edward C. DeLeon Guerrero confirmed that IPI has not paid yet.

If IPI fails to meet tomorrow’s deadline, that matter would be discussed in a CCC executive session that day, DeLeon Guerrero said, because there will be further actions to enforce the CCC decision and orders.

It was CCC board vice chair Rafael S. Demapan who issued the 30-day notice of payment to IPI, after determining that a reasonable deadline for IPI to pay the 2020, 2021, 2022, and 2023 casino license fees is 30 days from the receipt of the notice.

IPI’s latest controversy happened last Nov. 23, when the Beijing Municipal First Intermediate People’s Court reportedly ruled that Ji Xiaobo, the former executive of Macau junket firm, Hengsheng Group, and project manager for IPI, was deemed the head of a criminal syndicate. (Ferdie de la Torre)

DPW assesses CUC $6.9 million for 110 alleged violations

Acting Commonwealth Utilities Corp. executive director Betty G. Terlaje got a surprise last Aug. 4 when she received a sheaf of documents from the Department of Public Works Technical Services Division, informing her about civil fees and civil penalties assessed by DPW against CUC.

According to DPW, as of June 30, 2023, CUC owes the CNMI government $6.9 million in fees for about 110 alleged violations that are mainly related to unpermitted road cutting work.

Last April, DPW Secretary Ray N. Yumul issued a final notification to CUC over its alleged repeated violations of not restoring roads that it had cut up or dug up for its projects. Then-acting CUC executive director Dallas M. Peavey Jr. immediately informed Yumul that they’re working to repair and replace roads that were damaged by CUC projects. He also disclosed that 16% of CUC road repairs are caused by DPW cutting into and/or through CUC water and sewer piping.

In order to address CUC’s outstanding road cutting and trenching restoration work, civil fines and civil penalties owed DPW, Yumul recently requested Attorney General Edward Manibusan for assistance in assigning an Administrative Hearing Officer as part of the administrative process. (Ferdie de la Torre)

Camacho, Peavey, Voerg resign from CUC

Year 2023 saw the resignation of several top Commonwealth Utilities Corp. officials, including its long-time executive director, Gary P. Camacho.

As of yesterday, CUC has yet to hire an executive director as the search process continues. The position has been vacant since Feb. 21, 2023.

Camacho resigned from his post on Feb. 21, on the same day when news reports surfaced that Gov. Arnold I. Palacios is determined to replace him.

Camacho told Saipan Tribune that he needs to take care of his health. He has worked at CUC in different capacities for about 30 years.

It was in 2017 when U.S. District Court for the NMI designated judge David O. Carter waived the qualification requirement for the executive director’s position and approved Camacho’s appointment for the position.

With Camacho’s resignation, on Feb. 21 then-CUC board of directors chair pro tem Janice A. Tenorio designated deputy director for electric power systems Dallas M. Peavey Jr. as acting executive director.

Peavey’s term, however, did not last long. Tenorio terminated Peavey’s employment in April, for cause.

Peavey’s termination came five days after he issued notices of disconnection to the Commonwealth Healthcare Corp. and Department of Public Works due to unpaid power and water services amounting to $53.6 million and $1.2 million as of March 31, 2023, respectively.

Tenorio informed Palacios and Lt. Gov. David M. Apatang that she and CUC’s Human Resources staff became aware that Peavey had “exhibited dishonesty and a lack of candor” in his application to serve as deputy director for electric power systems.

According to online news report dated August 2022, an indictment was filed against Peavey in Texas for three felony charges involving falsification of travel expenses and invoices. He reportedly pleaded guilty to all charges. He received a deferred adjudication of guilty and was placed on provision for five years.

The case was subsequently dismissed in 2014 because Peavey had paid his restitution and probation fees.

With Peavey out, Tenorio appointed deputy executive director for water/wastewater Chretien T. Voerg as acting executive director. Two days after his appointment, Voerg too resigned from both positions as deputy executive director and as acting executive director. (Ferdie de la Torre)

Palacios takes oath as CNMI’s 10th governor, Apatang as 13th lieutenant governor

Arnold I. Palacios and David M. Apatang were sworn in last January as the CNMI’s 10th governor and 13th lieutenant governor, respectively, at the Pedro P. Tenorio Multi-Purpose Center in Susupe. The ceremony lasted only about an hour and seven minutes, said to be the fastest gubernatorial inauguration in CNMI history.

Among the VIP guests were Delegate Aumua Amata Coleman Radewagen (R-AS), who is a member of the U.S. Congress representing American Samoa; Guam Gov. Lourdes A. Leon Guerrero; Palau President Surangel Whipps Jr., Chuuk Gov. Alexander R. Narruhn, and Philippine Consul General John U. Hilado.

Palacios said his administration intends to rebuild trust, restore confidence, and bring back integrity and credibility to the government.

Apatang said he and Palacios will immediately face a myriad of challenges, issues, demands, oppositions, and many more. He said they will look at these challenges in the eye and work together to resolve them. (Ferdie de la Torre)

BOOST probe continues

It was in July 2023 when then-House of Representatives acting speaker Joel C. Camacho (Ind-Saipan) created a special committee that will continue the investigation into the previous administration’s controversial Building Optimism, Opportunity and Stability Together, or BOOST Program, as well as the CNMI’s expenditure of American Rescue Plan Act funds.

Rep. Ralph N. Yumul (Ind-Saipan) was appointed chair of the Special Committee on Federal Assistance and Disaster Related Funding. Floor leader Rep. Edwin K. Propst (D-Saipan) was appointed vice chair.

As of yesterday, the special committee has yet to start the formal hearings, although it issued letters and served subpoenas to several people and companies involved in the BOOST Program.

Yesterday, the special committee members agreed to issue a subpoena to get some documents from the local media—Saipan Tribune, Marianas Variety, and KKMP.

Propst, who presided over the meeting, included KSPN2 among the media outfits that would be subpoenaed.

Propst said that since the media companies are private entities, summoning them with subpoenas is a normal route to take and that it doesn’t suggest any wrongdoing on their part.

He said the media entities of course were paid for the work they did and that the committee would like to find out exactly what is owed these outlets and what was asked of them to perform. House legal counsel Joseph Taijeron emphasized that these media entities have been particularly transparent with the committee and have conducted straightforward and legal conduct. Taijeron stressed that the subpoena is not something that they want to do but that’s the only legal avenue available to the committee because the letters that they usually issue are for government entities alone.

The special committee was created after Rep. Marissa Renee Flores (Ind-Saipan), who chairs the House Committee on Judiciary and Governmental Operations, disclosed that her committee agreed that it would not conduct additional legislative hearings regarding the BOOST Program, given that several criminal investigations into the program have already been initiated.

The Ways and Means and the JGO Committees of the 22nd House jointly conducted several legislative fact-finding hearings that resulted “in the discovery of unprecedented levels of corruption and fiscal mismanagement relating to federal funds.” The committees recommended that the current 23rd Legislative continues the BOOST probe.

Using $17 million in ARPA money, BOOST was a project of the previous Office of the Governor, Department of Finance, and Department of Commerce. It aimed to provide financial assistance to CNMI businesses and nonprofit organizations, but some lawmakers alleged that it was used by the previous administration to gain votes in the 2022 gubernatorial election and enrich the previous administration’s cronies. (Ferdie de la Torre)

Palacios pivots from China market; Kilili supports EVS-TAP for Chinese tourists

With geopolitical tensions between China and the United States growing since the COVID-19 pandemic, Gov. Arnold I. Palacios announced his intent to pivot the CNMI away from its reliance on the Chinese tourism market, which was the Commonwealth’s second largest market prior to the pandemic. However, the Commonwealth Ports Authority and the Marianas Visitors Authority have underscored the need to get back the Chinese tourists to revitalize the CNMI economy.

Matters became more complicated when four U.S. senators and 28 U.S. House members requested U.S. Department of Homeland Security last November to revoke the discretionary parole program that allows DHS to let Chinese tourists enter the CNMI without a tourist visa.

In response to the U.S. lawmakers’ action, the Saipan Chamber of Commerce and Hotel Association of the Northern Mariana Islands urged Palacios and other government leaders to back the creation and implementation of the proposed CNMI Economic Vitality & Security Travel Authorization Program, or EVS-TAP, that according to them will address concerns about the discretionary parole program, while promoting the CNMI’s economic growth.

The proposed EVS-TAP will allow prescreened People’s Republic of China nationals to travel to the CNMI without a visa under specific conditions.

The Senate recently adopted a Senate joint resolution authored by Sen. Jude U. Hofschneider (R-Tinian) to request Palacios to advocate for the promulgation of the rules governing EVS-TAP.

Delegate Gregorio Kilili C. Sablan (D-MP) has also urged DHS Secretary Alejandro Mayorkas to move forward on the rule-making process for the EVS-TAP.

House of Representatives Speaker Edmund S. Villagomez (Ind-Saipan) early this week referred Hofschneider’s joint resolution to the House Commerce and Tourism Committee. (Ferdie de la Torre)

Touchback rule implemented

The touchback provision that would require long-time foreign workers in the CNMI to exit the Commonwealth before the third consecutive renewal of their CNMI-Only Transitional Worker permit, or CW-1 visa, was officially implemented in September.

The rule, as enforced by U.S. Citizenship and Immigration Services, resulted in the expected exit of thousands of foreign workers, who will have to wait in their home countries for USCIS to approve their CW-1 visas first before they are allowed into the CNMI.

Weeks before the September deadline, the CNMI Department of Labor launched a survey among private and government agencies that employ CW-1 workers in an attempt to gain a clearer picture of the impact of the touchback provision. Unfortunately, less than 20 agencies participated in the survey.

Organizations like the Saipan Chamber of Commerce, as well as the CNMI administration continue to appeal to the U.S. Congress to modify or even repeal the touchback provision since a large chunk of the CNMI workforce is made up of CW-1 workers. (Kimberly B. Esmores)

CPA fees reach an all-time high; flights/tourist arrivals down

Cornered by a drastic drop in revenue due to the lack of air traffic, the Commonwealth Ports Authority’s board was forced in October to increase airport fees to an all-time high, by as much as a whopping 90% increase in landing fees and a 79% increase in terminal rental fees.

With the newly adopted budget, the CPA terminal rental rates for the Francisco C. Ada/Saipan International Airport’s main terminal went up from $19.49 per square foot to $34.92. Meanwhile, the terminal rental rates for all CNMI commuter terminals is now $13.97 from $7.79.

As for landing fees, with the 90% increase, CPA now charges international airline carriers $15.25 per thousand pounds of certified maximum gross landing weight of the aircraft; they were previously being charged $8.01. As for the CNMI commuter terminals, the 90%-increase brought landing fees up from $4.81 to $9.15.

The CPA board also adopted an eight-hour cut for all CPA employees and suspended its airline incentive program.

In addition, CPA also increased the current parking rate at the Saipan airport parking lot.

These massive increases have resulted in airlines becoming reluctant to fly to Saipan. Currently the CNMI only has United Airlines, Jeju Airlines, T’Way Airlines, and Asiana Airlines flying to Saipan.

According to the Marianas Visitors Authority’s representative in South Korea, flights have been reluctant to return to Saipan as the increase in airport fees brings the cost of flying to Saipan up about $3,000 per flight.

MVA’s Japan office has reported the same concern. (Kimberly B. Esmores)

Over $1.8M worth of meth intercepted

Back in September, the Division of Customs and Biosecurity intercepted 10 lbs of methamphetamine that was smuggled into the island through the U.S. Post Office in the form of eight glitter lava lamps.

The value of the meth stored in these lava lamps, based on the weight and the street value per gram of the substance, totaled over $1.8 million.

Yang Liang in October pleaded guilty to attempting to smuggle the meth through lava lamps into the CNMI through USPS. He faces a possible maximum sentence of 20 years. (Kimberly B. Esmores)

MSA flies away

The Palacios-Apatang terminated in February the CNMI’s $8-million sole-source contract with the startup interisland airline Marianas Southern Airways, citing a lack of funding.

After months of trying to work out a deal between the CNMI administration and MSA, MSA finally closed up shop on Saipan and withdrew its flights. (Kimberly B. Esmores)

Torres criminal suit continues

The criminal suit against former governor Ralph DLG Torres—alleging 12 counts of misconduct in public office and one count of theft—continues with the Office of the Attorney General enlisting off-island lawyer James Kingman to lead the prosecution against Torres.

Kingman in November filed a new lawsuit against Torres in Superior Court charging him with contempt anew for his failure to comply with a legislative subpoena.

The initial contempt charge against Torres was dismissed by judge pro tem Alberto Tolentino back in August. (Kimberly B. Esmores)

Cop’s loose gun leads to accidental shooting

A Department of Public Safety Officer was arrested in May after the police determined that his service firearm was allegedly used in an incident where a minor was accidentally shot in the face in Kagman.

The case of DPS officer Raymond Lizama Saralu, whose service firearm is believed to have been the gun used in the Kagman shooting, is set for a jury trial in 2024.

According to the complaint against Saralu, the evidence found at the scene may have been tampered with as the gun that was allegedly determined to have been used in the shooting was found in a laundry basket and covered with clothes while another gun was found on the floor near the minor who had been shot. (Kimberly B. Esmores)

DPS responds to multiple threats

The Department of Public Safety responded to multiple threats this year.

Back in September, the department responded to back-to-back shooting threats at the Hopwood Middle School and Francisco M. Sablan Middle School.

DPS also responded to a bomb threat at Cha Cha Oceanview Middle School that same month.

In November, DPS responded to a bomb threat at FMS where a student was arrested. The suspect in the incident was not related to the September incident. (Kimberly B. Esmores)

Former BMV chief convicted for involvement in license fraud scheme

Former Department of Public Safety Bureau of Motor Vehicle director Juana Leon Guerrero was indicted by a federal grand jury in March on the charge of conspiracy to unlawfully produce an identification document.

The former BMV chief later pleaded guilty to the charges filed against her.

In December, U.S. District Court for the NMI Chief Judge Ramona V. Manglona sentenced Leon Guerrero to five years in prison and three years’ probation. (Kimberly B. Esmores)

PSS chief Ada abruptly resigns

Education Commissioner Alfred B. Ada abruptly resigned from his post at the Public School System in August 2023, citing health reasons. He said he was advised by his physician to step away from taking on more responsibilities so he could focus on getting better.

The subject became mired in controversy, though, when allegations surfaced that a PSS employee had accused Ada of sexual harassment and other unprofessional conduct. Five individuals allegedly expressed readiness to testify against him, although they had not filed their personal grievances prior.

It was also stated that allegations being raised against Ada cover a period of time, the latest of which dates to 2022 and the earliest dating back to 2003.

Ada denied the allegations, saying his track record over the past decades “stands as a testament” to his dedication, integrity, and commitment. He appealed to the media and the public to respect his privacy and refrain from speculations.

After working in PSS for 30 years, with the last three-and-a-half years in the role of education commissioner, Ada’s resignation took effect on Sept. 1, 2023. He was appointed in December 2019. (Chrystal Marino)

Top stories logo