Cohen: Be fair to all businesses

A ranking federal official reminded the CNMI government yesterday to maintain a good reputation in the business community, as this is crucial in its ability to attract potential investors.

David B. Cohen, the U.S. Department of the Interior’s deputy assistant secretary for insular affairs, said that while his office does not endorse any company or project, the federal agency asks insular governments to treat all companies fairly.

Cohen made this comment in response to a question concerning the CNMI government’s proposal to have all investors interested in extracting Pagan pozzolan undergo a bidding process.

Los Angeles-based Bridgecreek International Corp. and JG Sablan Rock Quarry Inc., which recently formed a joint venture company to conduct mining operations in Pagan, oppose the proposal. The business partners, which intend to use JG Sablan’s 11-year-old mining permit, see the government’s proposal as a potential cause of delay to the mining project.

Bridgecreek was part of a trade mission to the insular areas that was sponsored by the Interior Department in May 2005.

“We don’t endorse any particular company or project. We try to provide an opportunity for off-island companies, local businesses and the local government to come together, and then let the relevant parties determine on their own whether the conditions are right to move forward. What we do ask is that all companies, including off-island companies, be treated fairly, and that the process that they face in the CNMI is transparent and free of favoritism,” Cohen said.

He noted that this is important, as the Interior places its prestige and credibility on the line to encourage businesses to consider doing business in the CNMI.

“Much more importantly, however, treating potential investors fairly is crucial to the CNMI’s ability to attract the investment that it needs to rescue its economy. The CNMI economy is now in a period of vulnerability that leaves very little margin for error, so it is very important for the CNMI to earn a good reputation in the business community.”

Cohen also maintained that fair treatment does not mean the CNMI should automatically give what potential investors ask for. The government needs only to be fair, reasonable, consistent, transparent and responsive in its dealings with potential investors, he said.