ACTING Gov. Diego T. Benavente yesterday criticized Verizon and Pacific Telecom, Inc. for filing a petition with the Federal Communications Commission that, he said, contained lies and slanders.
In their 143-page petition, Verizon and PTI alleged that the CNMI government’s involvement in the purchase deal is linked with the interests of another bidder, UMDA.
“That is a false statement and Verizon should know better. Stick to the issues and do not try to slander individuals,” Benavente said in a statement.
Benavente said Gov. Juan N. Babauta raised valid issues before the FCC, and he was confident that a fair hearing would result.
He said the government supports foreign investment, “but only when our telecom system is open and truly competitive.”
PTI, which won the bid for Verizon, is the consortium of Tan Holdings Corp., Citadel Holdings Corp. and Missouri Holdings Corp.
Once the purchase is approved, Citadel would have 50 percent of Verizon’s assets.
Benavente said the CNMI government wants its concerns regarding telephone rate integration addressed prior to the sale of Verizon.
In 1996, Gov. Juan N. Babauta, who was still the CNMI’s representative to Washington, D.C., pushed for the inclusion of the CNMI and the insular areas in the domestic telecommunications system.
“If we decide this in an FCC forum as Guam Gov. Carl T.C. Gutierrez recommends, it will cost us money and time, and we will be outmanned and outspent as we are in this proceeding. We should have our concerns addressed prior to the sale,” Benavente said.
He also expressed concern over PTI’s ability to operate a telecommunications company.
He said PTI had provided little information regarding its operations in the Philippines.
“They raise their ownership of a telecom company of three years as proof of their experience, but often no information about this company—for example, employee wages, technology used. We are unsure of their background,” Benavente said.
Jose Ricardo Delgado, chief financial officer of Citadel Holdings, earlier said PTI remains the “most qualified…to buy and operate Verizon in the CNMI.”
“I remain confident that in the end, the truth will come out and this thing will get done,” he added.
Benavente said the administration will remain involved in the Verizon purchase process.
“We filed our opposition not for political reasons, but to protect the public interest. We remain committed to ensuring that. Almost all the Verizon’s response is political. They attack the Office of the Governor’s filing as being influenced by our ownership in UMDA. That is simply not true,” he said.
He said Verizon’s filing with the FCC attacks the credibility of CNMI lawmakers.
He said the petitions and issues the lawmakers raised should stand on their own merits.
“The discussion about the sale of Verizon should be about service, about financial ability, about commitment. Unfortunately, the filing of Verizon appears to have gone in a difficult direction,” Benavente said.
Verizon’s filing is in response to the CNMI government’s comments filed with the FCC.
Gov. Juan N. Babauta, key members of the House of Representatives, the U.S. Department of Justice and the Federal Bureau of Investigation all opposed the purchase deal.
