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. Enron emerged runner-up to Marubeni-Sithe in that evaluation conducted by CUC’s in-house evaluators which it strongly opposed, prompting the power company to lead the protests against the government-owned utility corporation over its handling of the project. Last Friday, the CUC board rewarded Enron through the “conditional” grant of the estimated $120 million contract by a split vote of 3-2 in an effort to meet the deadline set out by a recently enacted law and to start the negotiation 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. “Everybody just comes in and opens a new school by getting a business license,” the board chair pointed out. Diaz expressed concern over the lack of an authorized body to look at the curriculum of these schools.

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. Mr. Babauta made the revelation after recent discovery that the Division has implemented policies to allegedly misconstrue the amount of taxes imposed upon goods produced in the CNMI solely for export.

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. The act aims to institute a new comprehensive and exclusive mechanism for the disbursement, administration and awarding of guaranteed student loans.

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. Tinian Dynasty Hotel and Casino Chair Michael Kwan, together with the company’s legal counsel, is now in Hong Kong where negotiations are ongoing.

As part of long-term solutions for the financial problems besetting the Tinian Shipping and Transport, the CNMI government is now exploring ways for the ailing firm to receive federal grants to subsidize its operations. Senate President Paul A. Manglona disclosed this, soon after a meeting yesterday with Gov. Juan N. Babauta, who has expressed concern over the matter. Manglona said that news about the resumption of the Tinian ferry operations by Friday is good but it is imperative that long term solutions be explored to prevent any future disruption in the ferry service between Saipan and Tinian.