Vol. 34 No.257
       ©2007 Marianas Variety
Wednesday, March 14, 2007 www.mvariety.com
Serving the CNMI for 34 years
 

© 2007 Marianas Variety
Published by Younis Art Studio Inc.
All Rights Reserved
Email :
mvariety@vzpacifica.net
PMC exceeded its FIAC scope, warned of future sanctions

By Bernadette H. Carreon
Horizon news staff

The Foreign Investment Board said that the Palau Mobile Corporation (PMC) in some instances exceeded its authority and should cease from engaging in activities beyond the scope of its Foreign Investment Approval Certificate.
Regina Mesebeluu, FIB chairperson said in his letter to PMC counsel Salvador Remoket said that the investigation concluded that formal sanctions are not appropriate at this time, FIB however cautioned PMC that it must not violate the terms of the FIAC in the future or it could face severe sanctions.
The FIB said that PMC’s current scope is to "provide and improve the IDD and mobile telephone services to and from the Republic of Palau . The scope of the business may include provision of roaming service, subject to all applicable laws and regulations for the data and voice transmission."
An investigation was conducted after it was alleged that the PMC was "improperly providing internet access to Palasia Hotel and at least one other hotel."
The FIB also investigated allegations that PMC was improperly providing mobile telephones with SIM cards and selling SIM cards to customers.
"It was alleged PMC exceeded its authority under its FIAV and that the two issues presents different matters," the FIB said.
The FIB said that the scope of the FIAC does not include provision of internet service through hotel access or any other access except through mobile telephones.
The FIB said that PMC must not provide or permit any internet access or make it available to any third parties in the future.
The FIB said that PMC is also prohibited from the sale of SIM cards because the law restricts sale of goods to companies which are wholly owned by Palauans.
The FIB also warned the PMC that PNCC connections may not be used without its permission.
"The FIB hereby puts PMC on notice that if PMC engages in activities beyond the scope of its FIAC in the future, severe consequences should be expected," Mesebeluu said.