The extended state of emergency declaration on CPA places the agency under the governor’s control for another 30 days.
Hofschneider, R-Saipan, said while he doesn’t disagree with the extension, he thinks that the CPA board must still be created.
“There are two things that must be pointed out clearly. The need to continue dealing with CPA’s financial obligations to Bank of Guam — the bond trustee and the need to act promptly to nominate board members,” the lawmaker said.
“The (new) CPA board members must be responsive, attentive and fiduciary responsible for the affairs of CPA not only for Bank of Guam but as well as on seaports and airports to promote the CNMI,” he added.
He said the current state of CPA — the agency in-charge of the islands’ seaports and airports — is not good for the CNMI’s tourism-based economy.
“Not that the governor needs my advice but I think he should reconstitute the board. We have a lot of financial assistance coming from the Federal Aviation Administration. There is also a need to be cognizance that we should not interfere with the affairs of CPA,” he said.
CPA’s major sources of income are airlines and passengers that travel to the islands.
They are charged certain fees for using the islands’ airport terminals.
But since Japan Airlines abandoned the Saipan route in 2005, CPA has lost millions of dollars in potential income.
Last month, the governor took over CPA amid fears that the Bank of Guam would declare its bond indenture of $20 million in technical default.
A year ago, CPA’s debt ratio was downgraded to B+ which means there is doubt on how it can pay the bond up to 2028.
On Friday, Gov. Benigno R. Fitial announced that he was ready to nominate CPA board members from Saipan but not from Tinian and Rota.
“I already have names for Saipan but I still don’t have names for Rota and Tinian,” he said.
He said it might take time because he has to consult first with the mayors of Tinian and Rota.
“I am not ready to submit names of new (CPA) board members. It takes time because I have to consult the mayors of Tinian and Rota for the nominees,” he said.
The CPA board must have at least seven members.
