Business Briefs
Business Briefs
Commonwealth of the Northern Mariana Islands
Despite ongoing headlines trumpeting a long, downward slide of the Northern Marianas’ economy, there are still a few investors bullish on prospects for the future. Bob Starr, owner of Pacific Castle Park, recently announced plans to build a $23.5 million family entertainment and 17th century theme park on Saipan. “The Japanese tourists are going to come back,” he told the Marianas Variety. Starr also believes it will appeal to local families who “will love it.” The aim is to replicate a 17th century Scottish landscape complete with castle. The project will include numerous recreational facilities, like a swimming pool, racquetball and squash courts—and a kiddie ride park. It’s going to be built on the southern part of Saipan where the former Island Castle nightclub is located.
Marshall Islands, Federated States of Micronesia
The U.S. Postal Service announcement of plans to change the “domestic” postal designation for the Marshall Islands and Federated States of Micronesia to “international” has caused an uproar among Majuro’s business community. Local business leaders say that the change will be devastating to private sector development, with an equally harsh impact on numerous U.S.-based companies that sell millions of dollars in products to these far-flung islands by virtue of access to U.S. domestic postal rates. If the USPS plan goes through, rates for a one-ounce letter will rise from the current 34 cents to $1.34. U.S. officials say the move is mainly because the current system of providing weekly charter service to the islands is too costly to continue. The USPS’s “responsibility is not and should not be to simply make money for the postal service,” an editorial in the Marshall Islands Journal commented. “They have a very significant role in fulfilling the accepted American responsibility to work for the economic development of these stressed and unfortunately abused islands.”
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American Samoa
Three of the minority shareholders of TRT Inc., a corporation that financed the McDonald’s franchise in American Samoa, are suing TRT, Inc. President Agaoleatu Charles Tautolo for misrepresentation and breach of fiduciary duty to TRT Inc.’s minority shareholders. The local franchise opened in Sept. 2000. The suit filed by Fiasili Haleck, Matagi McMoore and his wife Sese McMoore claim their investment in the development of the local McDonald’s fast food restaurant franchise was based on the understanding that TRT, Inc. would own the local McDonald franchise. Haleck is a cabinet member of the Gov. Tauese Sunia’s Administration, Matagi McMoore is the Speaker of the Territorial House of Representa-tives and his wife Sese is the president and chairman of the government-owned Rainmaker Hotel. They accuse Tautolo of having his own personal agenda to control the local franchise himself, and are seeking millions of dollars in damages. Tautolo is a lawmaker and the chairman of the powerful House Budget Committee.
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The federal trial of Daewoosa Samoa owner Kil-Soo Lee and two of his former managers has been postponed to October 22, giving defense attorneys more time to prepare. The trial was originally set for April 9 at the Federal District Court in Honolulu. Lee and his two former managers, Virginia Soliai and Robert Atimalala, face federal criminal charges in Honolulu for allegedly keeping Vietnamese and Chinese workers in involuntary, forced labor conditions. The decision to postpone the trial is a minor victory for Lee’s attorneys, who have been trying to interview the 180 Vietnamese and Chinese workers paroled to the U.S. under the T-Visa law. U.S. Magistrate Judge Barry Kurren ordered federal prosecutors to immediately supply Lee’s attorney with the names of attorneys for the Vietnamese and Chinese workers now residing in the U.S.
The U.S. Postal Service has awarded a new air cargo contract to a U.S. mainland company to carry the Territory’s mail starting in mid-April. Local Postmaster Smitty McMoore said that the USPS has awarded the new weekly contract to Gemini Air Cargo, that is headquartered in Washington D.C. It will also carry cargo. Los Angeles-based Pacific Air Cargo is currently operating weekly cargo service to the territory from Honolulu. PAC took over the Pago Pago weekly cargo service on January 12 when Evergreen International Airways made no commitment to resume its flights to the Territory after December 23, 2001. PAC’s last flight was April 13.
