Ex-Chief Justice Dela Cruz believes that “the CNMI will soon be bankrupt unless the government changes the land alienation rule which discourages potential investors from infusing fresh capital into the islands’ ailing tourism-based economy.”
I beg to differ with Mr. Dela Cruz. The CNMI’s land alienation law is not one of the major factors behind the CNMI government’s financial dilemma.
Realistically, it is the doing of our elected officials’ insatiability, power play, and baddy-baddy approach that have brought the CNMI to this financial predicament.
It is the elected officials’ famous hidden attitude we call in Chamorro “Guahu Finetnina.”
We should be mindful that during the boom of the late 80’s and early 90’s the land alienation was already in the CNMI Constitution. Investors still flocked to the CNMI with a positive investment attitude. They built hotels and other businesses. They were not discouraged by Article XII.
In my opinion, the driving factors that might cause the CNMI government to go bankrupt are the following:
1. Fact: the CNMI economy is tourism base. Continental and. Japan Airlines pulled out. Northwest Airlines is reducing the number of its flights.
These are the major causes of the our government’s financial dilemma. Fewer tourists to the CNMI mean less revenue for the CNMI government.
2. Fact: the exodus of over $80 million from the garment factories.
3. Fact: Private and public entities have to embrace sustainability in these hard times. To stay afloat they have to cut corners and this has greatly affected employees. Taking away consumer buying power will mean less taxes to the government from businesses.
4. Fact: The high cost of fuel.
5. Fact: The depressed global economy. There is nothing we can do to revive our economy unless the world economy improves. Foreign investors will only react positively to the economy when the world economic situation is resolved. The CNMI government will continue to financially suffer.
To blame land alienation as the cause of the CNMI government bankruptcy is a fallacy.
It is my personal view that the above reasons will cause the CNMI government to be bankrupt and not land alienation.
And of course, there is the Homeland Security issue to consider when inviting potential investors from China and Korea and other countries. Homeland Security is beyond our control.
But I must admit that I strongly agree with Mr. Dela Cruz that we should be flexible in terms of land lease.
But his suggestion of extending land lease from 40 years for public land and 55 years for private land to 75 to 99 years is not the answer.
The concept is the same as lifting land alienation. I would recommend that flexibility should be given to land owners. Land owners should make the decision. Extending to 75 to 99 years is not acceptable considering the Chamorro and Carolinian lifespan of 65 to 70 years. Economically, this is not acceptable.
But investors and land owners must continue to economically prosper. The current 55 years land lease provision should stay. The land lease flexibility should remain with the land owners. The government should not be making decision for the land owners. If land owners want to lease back the completed lease term, then let them make that decision.
Lastly, we must embrace Article XII of our Constitution. We must not compromise our land over money. Money is not our future, land is! Money is EVIL!
ISIDRO KANI
As Matuis, Saipan
