Gov Takes Over Autonomous Ports Authority
(Saipan Tribune)
Northern Marianas Gov. Benigno Fitial has assumed control of the autonomous Commonwealth Ports Authority to stave off the agency defaulting on a a $20 million bond, the Saipan Tribune reports.
The authority board has been unable to get a quorum to deal with the pending default of a $20 million bond for which the Bank of Guam serves as trustee. If the ports authority defaults on the terms of the bond, which was issued in 1998, the bank could declare the agency in default and assume control of the Saipan Internaitonal Airport.
Fitial has ordered that the ports authority immediately raise many rates, and end an incentive program designed to attract new air carriers to Saipan, the newspaper reports.
This is the second time that the governor has issued an executive order to take over an autonomous Northern Marianas agency. He earlier ordered the takeover of the struggling Commonwealth Utilities Commission.
http://www.saipantribune.com/newsstory.aspx?newsID=79911&cat=1
