THE Commonwealth Ports Authority on Friday issued a notice of default against Rota Terminal & Transfer, and gave the company until May 26, 2024 to make “corrective actions.”
Signed by CPA Board Chairman Jose C. Ayuyu and Executive Director Leo B. Tudela, the notice of default was provided to RT&T General Manager Viola Hocog-Atalig “with official notification of the specifics of your violations of the lease agreement, and an opportunity to correct the violations before CPA terminates the lease agreement.”
These are the violations:
1) Failure to remove damaged equipment and other items.
According to the notice, CPA instructed RT&T on Dec. 20, 2023 to take immediate action to either remove or rehabilitate damaged equipment on the premises to ensure safety, appearance and functionality. As of April 26, 2024, RT&T had not completed the removal of the damaged equipment and other items at Rota West Harbor.
2) Failure to maintain an operable crane.
CPA instructed RT&T in 2022 to procure a crane or face default on the lease agreement. Subsequently, on Jan. 12, 2023, CPA instructed RT&T to purchase a crane, repair parts or similar equipment and to resume stevedoring services by Feb. 12, 2023.
On April 10, 2024, CPA was informed that RT&T was delinquent on payments to the owner of its leased crane, International Bridge & Construction Marianas Inc., in the amount of $200,000, and RT&T was therefore unable to continue using the leased crane. CPA has confirmed that RT&T does not have an operable crane at Rota West Harbor.
According to the notice of default, “This is unacceptable, especially in light of the fact that RT&T has experienced similar issues with crane operation and demands from CPA to purchase a crane numerous times before. It is RT&T’s obligation to ensure smooth operations at the Rota West Harbor. Without an operable crane, RT&T is unable to accept large shipments, including container shipments, which has drastically hurt the economy and people of the island of Rota.”
3) Failure to maintain CNMI business license.
The notice stated that although RT&T has responded to CPA’s most recent request for information, RT&T previously failed to respond to CPA’s requests for a copy of its updated business license. On March 28, 2024, the CNMI Registrar of Corporation issued RT&T an official notification letter for delinquency in filing its annual reports.
CPA said the five-year lapse in filing RT&T’s annual corporation reports was entirely unacceptable and in violation of the lease agreement. Furthermore, RT&T ignored numerous requests from CPA regarding its business license, seemingly because RT&T was operating without a valid business license during that time.
4) Failure to timely file with CPA a certificate showing that required insurance coverage has been renewed or extended.
Although RT&T has responded to CPA’s most recent request for information pertaining to insurance coverage, the company previously failed to respond to CPA’s requests for a copy of its renewed insurance policy. RT&T’s insurance policy expired on Feb. 11, 2024.
CPA said by May 26, 2024, RT&T should completely remove or repair all the damaged equipment and other items from Rota West Harbor; purchase a crane or similar equipment and resume stevedoring services; and certify to CPA that all the violations have been cured within 30 days.
Variety was unable to get a comment from RT&T.
