Bank of Saipan, which was closed by the government on April 30, will finally re-open at 10 a.m. today.
Acting Commerce Secretary Fermin M. Atalig told Variety that the bank will accept depositors, loan payments and other banking transactions.
But withdrawal of deposits will be “limited,” he said. Each depositor can withdraw $500 plus 10 percent of the remaining balance, Atalig said.
“This is what we have been waiting for. This is the result of the series of meetings and planning conducted by the receiver and all parties involved, including the government,” Atalig said.
Atalig, along with two of his staff, went to the bank yesterday at around 2:15 p.m. to remove the lock at the bank’s Chalan Kanoa branch.
Attorney Randall Fennel, the court-appointed bank receiver, said that despite the “interference” of various parties, the banking institution will finally re-open its doors.
“That’s the good news. I know everybody at the bank has been working overtime to get ready for this opening,” Fennell said.
He said the Superior Court has issued an order on the reopening of the bank.
“I want to emphasize that there is a lot of money, and there will be more,” Fennell added.
Atalig said he will propose that all government deposits should stay in the bank.
“I am recommending to keep it here to prevent disruption of the operation and to further bolster the confidence of the people,” Atalig said.
Out of the bank’s $48 million in total deposits, close to $16 million, or approximately one-third of the total deposits, belong to the CNMI government.
Based on the bank’s statement of assets and liabilities on March 31, 2002, only $8 million was “backed by U.S. Treasury Department securities as collateral.”
Rodney Jacob, legal counsel of the bank’s board of directors, said the directors have encouraged and will continue to encourage the employees to return to their work for the “good of the bank.”
Former Gov. Froilan C. Tenorio, who went to the bank yesterday afternoon, said there should be an assurance that the bank’s more than 50 employees would keep their jobs.
“I am concerned about the employees. For one thing, they have not been paid for the work they have done, and for other work they have performed,” Tenorio said.
Fennell said he “totally sympathizes” with the employees’ situation.
“I also want to thank the depositors for their patience and support during the past few weeks. I know it has not been easy and has caused many problems, but we are moving forward,” Fennel said.
Atalig said the government will “bring to justice” other individuals involved in the fiasco.
The bank’s former chairman of the board and chief executive officer, Tom B. Aldan, has been indicted for defrauding the bank. His co-defendants are Bert Douglas Montgomery, DuSean Berkich and Michael T. Wilson.
Wilson has already pleaded guilty, saying that he is willing to “cooperate” with the prosecution.
Jacob said it was the bank’s board of directors that “discovered” the fraud.
He said after the discovery, they hired the services of the independent auditing team, David & Comer, P.C.
