Flashback May 29, 2000-2002

CUC selects Enron[/B]

The controversy swirling around the procurement of a new power plant on Saipan is not likely to simmer down soon despite handing out the multi-million dollar contract to Texas-based industrial conglomerate Enron. For the second time, the Commonwealth Utilities Corporation made an actual award to a bidder, which came nearly two years after it chose Japan’s Marubeni Corp. and its U.S. partner Sithe Energies, Inc. in June 1998 following a highly-questionable selection process.

The State Board of Education is looking to address the absence of a regulatory body which should oversee the entry of private schools into the CNMI education system. BOE Chair Frances H. Diaz has underscored the need for the creation of a regulatory board which would exercise control over schools chartered out of the Public School System.

The island-municipalities of Saipan and Rota have endorsed the passage of a proposed measure that will transfer the management of the Marianas Visitors Authority to the private sector. Mayor Jose C. Sablan said he is endorsing HB 12-135 which he believes is a pro-business legislation as it encourages and support the development of the tourism industry comprising mostly of tourist-oriented and other related businesses.

Exporters paying tax twice[/B]

The Division of Revenue and Taxation has been imposing distorted tax requirements on Northern Marianas-based businesses transporting out-bound goods, according to House Floor Leader Oscar M. Babauta. Specifically, Mr. Babauta said the revenue and taxation division requires on-island investors to pay both the Business Gross Revenue Tax and the Custom Certification User Fee for locally-produced for-export goods.

A lawmaker has proposed for the cancellation of at least six existing financial aid programs to be replaced by one comprehensive student loan program, citing depleting government resources. House Committee on Education Chair Brigida Ichihara has authored an initiative dubbed as the Guaranteed Student Loan Act of 2000 which seeks to repeal current laws or regulations that has established postsecondary financial assistance for students funded by public funds.
[B] BPL balks land transfer to CPA[/B]

The Board of Public Lands Management is opposed to the transfer of title and ownership of a property in Puerto Rico to the Commonwealth Ports Authority. Ports officials previously asked the Legislature to allow the transfer of a portion of public lands adjacent to the Puerto Rico dumpsite, which CPA proposed to use in the development of port-related support facilities.

Ferry services may resume Friday[/B]

Ferry services between Saipan and Tinian may resume on Friday as negotiations in Hong Kong between the Tinian Shipping and Transportation, Inc. and its creditor move forward. This was learned from Tinian Dynasty Hotel and Casino Hotel General Manager Tom Liu, quoting updates on the negotiations between Tinian Shipping and Hong Kong-based World Fame Shipping.

The Commonwealth Development Authority expressed optimism that the CNMI economy will rally stronger in the remaining months of 2002, as business activities normalize during the first part of the year. CDA Executive Director MaryLou S. Ada based this projection on the number of business expansion as well as the construction of new establishments in the first few months of 2002.
[B] Sparks fly in Senate public hearing[/B]

Sparks flew during yesterday’s Senate Committee on Health and Welfare public hearing, with the chairman of the Northern Mariana Islands Retirement Fund’s Board of Trustees storming out of the Senate chamber due to what he said was his frustration over the incessant whining of local health care providers. In defiance of repeated calls by Sen. Ricardo S. Atalig, chair of the Senate Committee on Health and Welfare, for him to sit down and control himself, Board Chair Vicente Camacho stood up and scored the representatives of local private health care providers for their unremitting complaints, saying the Board has no plans of changing anything just to accommodate the complaints of two private health care providers.