By Gemma Q. Casas
Variety News Staff

THE government did not buy its 50,000 shares of common stock in the United Micronesia Development Authority, according to a lawmaker who says he was privy to the deal.
Rep. Manuel A. Tenorio, R-Saipan and an UMDA executive for 20 years until he became a public official, said the shares, which are now valued at $1 million, were given to the government by the firm’s investors as “gift.”
He said the shares were given in the 1980s during Continental Airlines’ take over of Air Micronesia, which was partly owned by UMDA.
“It’s not like the government invested (money) in UMDA…. The government helped (the company) in its fight against Continental Micronesia. It was a hostile takeover and UMDA owned about 60 percent of Air Micronesia,” said Tenorio in an interview.
“That’s where the money came from. They gave the stocks in appreciation for what the government did. The government tried to protect the company. The (government’s UMDA stock shares) belong to everybody in the CNMI,” he added.
The lawmaker earlier asked the government to consider selling its UMDA shares to raise money for its budget shortfall.
But the administration said it is not prudent to do so because the value of the shares have the potential to grow further considering UMDA’s good financial state.
Tenorio said he respects Gov. Benigno R. Fitial’s decision but, he added, his suggestion was out of concern for the government’s dwindling revenue collection.
“I’m suggesting this because they are looking for more revenue….All they do is increase expenses and they are cutting people’s salaries,” Tenorio said.
UMDA recently sold Laolao Bay Golf Resort to Asiana Airlines’ parent company for an undisclosed amount.
Tenorio said other governments in Micronesia, which he did not identify, were also given UMDA shares at that time.
“The CNMI government and other governments in Micronesia received stock from the company,” he said.
UMDA has business interests in the Northern Marianas and other Pacific islands.