FLASHBACK May 1, 2000- 2002

Petition begins for filing of class suit[/B]

A petition for possible filing of a class action suit against the U.S. government for the widespread contamination of polychlorinated biphenyl in Tanapag has now begun. Rep. Dino M. Jones, chair of the House Committee on Natural Resources, started the ball rolling last Friday with a call to island residents to attend a town meeting scheduled for May 8. This is in line with the visit of representatives from mainland-based law firms Waters & Krauss and Charles Seigel that will investigate the environmental disaster in the village described by Greenpeace activists as a “global toxic hot spot.”

At least 24 companies have signified intentions to participate in the bidding for the multi-million-dollar improvement of the West Tinian International Airport during an ocular inspection with Ports Authority officials Friday. CPA Board Chair Roman S. Palacios and Executive Director Carlos H. Salas spearheaded the delegation to the island for a tour of different sites that are up for repair under the West Tinian International Airport improvement project. The ocular inspection was part of the Pre-Bidding Conference for the project, where issues including scope, deadline for the submission of proposals, construction phasing, contract duration and contract award were discussed.

US Congress sees true picture of Saipan’s garment sector[/B]

Local garment industry officials are pleased that members of US Congress are now aware of the real conditions inside Saipan garment factories despite continuous attempts by the CNMI’s critics to malign the industry. Saipan Garment Manufacturers Association Executive Director Richard A. Pierce lauded a recent “Dear Colleague” letter from US Rep. John T. Doolittle (R-California) recognizing the “overwhelmingly positive” improvements made in Saipan’s garment companies over the last few years. Mr. Pierce at the same time took issue with criticism aired last month by Rep. George Miller (R-California) purporting alleged “ongoing wage and labor rights violations in factories operating in some of our American territories.”

The Hotel Association is calling on the government to raise environmental awareness levels to ensure that protection of the natural resources and promotion of tourism go hand in hand. “Tourism is not only about getting people to come over to our islands. It is also about ensuring that our visitors are provided a clean and safe environment,” HANMI President Ronald D. Sablan said. The hotel industry leader is taking government agencies to task in light of concerns raised by some members of the community about potential health hazards in areas that may be frequented by tourists.

Double whammy for banking sector [/B]

The Bank of Saipan’s board of directors has vowed to cooperate with a government move to appoint an outside expert to temporarily manage the banking institution’s financial affairs, amid the latter’s fears of depositors committing a bank run. Robert Goldberg, counsel for the BoS corporation, told Presiding Judge Edward Manibusan during a hearing yesterday afternoon that the bank supports the move to tap a “receiver” to oversee the bank’s operations. This came after the government filed yesterday a civil suit, petitioning the Superior Court for the immediate appointment of a “receiver” in a bid to prevent what it described as a “situation that may get out of control.”

Hong Kong and Shanghai Banking Corp. will close down its Saipan branch by the end of 2002, the HSBC Holdings Board announced yesterday. The decision is in line with the banking institution’s move to reposition and reduce its operations in the Mariana Islands, HSBC Guam/Saipan Chief Executive Officer Guy Priestly said in a statement. Priestly said that while the Saipan branch will completely cease operations by the year-end, the Guam office will stop offering transactional banking services and won’t be taking on new businesses with immediate effect. He pointed out that the decision to streamline operations in the Marianas was triggered by the present economic environment, which, he said, makes it hard for HSBC to build a competitive market position.