Fitial urged to revoke call center’s QC

The Commonwealth Development Authority has endorsed to the governor its recommendation to revoke the qualifying certificate of what was to be the first call center operator on island after the company failed to fulfill its promise to establish the business within a prescribed deadline.

CDA economic development analyst Carline Sablan confirmed with Saipan Tribune that they expect Gov. Benigno R. Fitial to approve the recommendation.

The recommendation was submitted last Dec. 22 and the chief executive has until Feb. 4 to act on it.

“The major reason: they were not in compliance with the requirement that the call center would be established within two years of issuance of their qualifying certificate,” Sablan said, adding that the company’s QC expired Feb. 23, 2008.

Although We Manage Call Inc., operator of the proposed call center, has the option to renew or ask for an extension, the agency official said its owners opted not to do so.

“They were informed about this revocation proposal, but we have not heard from them,” she said.

CDA earlier admitted that during inspections and visits, “no preparation” was seen on the proposed location of the business—the seventh floor of the former Nauru Building.

We Manage Call Inc. is a partnership between Erick Van Der Maas and his Los Angeles-based business associate Hans Smit, who supposedly owns 65 percent of the call center.

Their proposed business was earlier projected to bring a cash flow of $98 million over 10 years to the CNMI.

As part of their commitment, they purchased the former Nauru Building in Susupe and later renamed it Marianas Business Plaza, which is now home to a number of business renters.

It also planned to employ up to 200 people of which 90 percent are local residents.

Based on that plan, it will begin operation with 30 people in December 2005. The number was projected to increase to 50 by June 2006 and 100 by end of 2007. By middle of 2007, it was projected to employ 150 staff. Beginning 2008, its workforce was projected to increase to 200 or more.

Over 10 years, there will be $21.4 million in accumulated payroll and total employee income tax benefits to the CNMI will amount to some $900,000 based on its projection.

With a supposed initial capital of $2 million, the business was granted the government tax break and abatement on Feb. 23, 2005.

It later postponed developments and preparation for the business, citing two major factors: minimum wage and federalization.

The government’s qualifying certificate program grants various tax incentives of up to 100 percent in tax rebates for 25 years to investors who build, expand, and operate commercial projects in the CNMI.

CDA also recommended revocation of Tinian Dynasty Hotel & Casino’s qualifying certificate for noncompliance with the requirements, including tax issues, environmental concerns, and violations of some federal and local laws.

The chief executive is also expected to make the decision soon.

Once revoked, the QCs will be classified as invalid or inactive by the agency.

Out of the 13 beneficiaries since the program’s inception in 2000, only seven certificates are active at present.