‘No apologies over coin-minting issue’

Top congressional lobbyist Daryl Owen confirmed yesterday that he was instrumental in the signing of the CNMI government’s contract with a U.S.-based company for the manufacture of commemorative coins using the CNMI emblem, a contract that dragged the CNMI into a legal controversy last year over fraudulent marketing of $1 Freedom Tower silver coin.

Owen, of Daryl Owen Associates Inc., who is currently on island, said he introduced Softsky, a Wyoming-based company that manufactures commemorative coins, to Gov. Juan N. Babauta over a year ago.

He said he only did it with good intentions for the CNMI.

“I did [introduce Softsky to Babauta]. And I had absolutely no apologies about that. That’s a good thing for the Marianas,” he said, adding that, “I think it would be wise to stop being fixated on it.”

Besides, he said, the issue went through litigation and is settled now. “The lawsuit has been resolved. There’s a settlement and everybody who bought the coins [were] invited to return the coins [in exchange] for their money if they wanted to,” he said.

Reports said that more than 10,000 people may have purchased the coin, which was being sold for $23.45 each.

Owen said yesterday that only 5 percent of the buyers returned the coins and got reimbursed.

He also said that he did not receive financial rewards over the Softsky deal.

“My contract with the Northern Marianas absolutely has no money for that purpose. I work on other things for the Marianas, but not that,” he said.

The CNMI government earlier sought the New York Attorney General’s Office “to give us advice as to how best handle the royalties collected” from the sale of the coins.

New York attorney general Elliot Spitzer’s office, which had filed an $8-million lawsuit against the seller of the coins, National Collector’s Mint Inc., last year, received a favorable court ruling, stopping the sale of the coins.

A New York state judge found that National Collector’s Mint Inc. had engaged in civil fraud, false advertising and deceptive business practices when it marketed its “2004 Freedom Tower Silver Dollar.”

NCM claimed that the coin was a product of the CNMI and was made of silver from Ground Zero, the site where the World Trade Center towers fell on Sept. 11, 2001.

Spitzer had said that, contrary to the claim, the coins were made of inexpensive metal alloy plated with about one-ten-thousandth of an inch of silver.

Further, the U.S. Mint, the only government entity in the United States with the authority to coin money, said the silver coins were not genuine. It also ruled that the CNMI, as a U.S. insular possession, does not have the authority to coin its own money.

Following the court injunction against NCM, Babauta suspended the CNMI contract with Softsky, with the intention of fully terminating it. As such, Softsky is no longer authorized to develop, mint, or market any coins using the authorization of the CNMI.

Last October, the CNMI government received $110,000 in royalties from Softsky from the sale of the coins. Softsky had also remitted a total of $50,000 last year from the sale of Double Eagle coins.

Owen and associate Jim Berne, a former U.S. Senate staff, currently serve as consultants to Washington Rep. Pedro A. Tenorio.

They are on island, joining the fact-finding mission being conducted by U.S. Senate Energy Committee staff members Allen Stayman and Josh Johnson.

Owen, whose consulting company ranked No. 3 among 44 registered and most popular congressional lobby firms in 2003 with the highest payment received from clients, had just completed two contracts with Gov. Juan N. Babauta.

The governor hired Owen for nearly $200,000 in 2003 and 2004 for the recovery of over $100 million in “cover-over funds,” which refer to prior income taxes due the CNMI.

The administration credited the recent payment of $1.2 million to Owen’s services. This amount, however, only represents the current payments, not the $100 million prior payments.

Based on a disclosure report to the U.S. Congress, Daryl Owen Associates also provides consulting services to 13 other clients. These included Atlantic Co., Bechtel National Inc., City of San Francisco water and power division, Duke Energy, Entergy Corp., Federation of Electric Power Companies of Japan, FirstEnergy Service Co., ISO-NE, Japan Nuclear Cycle Development Institute, Pioneer Natural Resources, TECO Energy Inc., TEPPCO Partners, and Westlake Group.