Claude Phillip, Tony Otto and Dohsis Halbert.
Mori outlined a number of items that were pending and which he hoped would be resolved this week by Congress: an agreement on the government’s final total budget projection for 2011, the finalization of the government’s 2010 supplementary budget request, the pending tax reform legislation, the FSM fisheries loan, the pending nominations for the College of Micronesia-FSM board of regents and the temporary relocation of the personnel department under the president’s office.
Regarding the government’s budget projection for 2011, Mori said the revenue projection of $37.2 million should be changed because the figure would most likely be closer to $39.
He noted that the final total revenue amount for 2010 had been approximately $40 million and he saw no indicators for the revenue projection to decrease in 2011.
Phillip assured Mori that the issue would be re-visited by Congress and that all parties would welcome an agreement on a final projection amount.
The president at the same time extended an invitation to all members of Congress to attend the National Economic Symposium in Chuuk from Feb. 7 to 11, 2011.
Regarding the FSM fisheries loan, Marion Henry, secretary of the Department of Resources and Development, updated the committee on its status.
He explained that a total of 11 agreements needed to be negotiated in order to lay out the duties and obligations of all parties involved in the loan arrangement.
China would potentially be acting as the lender via China Eximbank, a bank fully owned by the Chinese government; the FSM national government would be the borrowing party, FSM Development Bank the loan manager; and Luen Thai Fishing Ventures, the operator for the four rehabilitated state processing plants.
In short, the amount of the loan will be used to rehabilitate the state processing plants, LTFV will make lease payments to the FSM government for operating these plants, and the FSM government will in turn use the lease payments to reimburse the loan to Eximbank.
