Due to the bond indenture concerns raised, CPA has asked the Legislature to pass a debt write-off bill.
CPA originally owed CDA $40 million plus and has been paying the authority $68,000 monthly.
CPA said the decline in seaports revenue as a result of the garment industry’s collapse has affected its ability to comply with the seaport bond indenture agreement.
“[The debt write-off] won’t affect the decision of the board and management of CPA to enforce rate increases at our seaports,” Camacho told Variety in an interview.
The rates may be raised by up to 20 percent.
House Committee on Commerce and Tourism Chairman Joseph C. Reyes said the write-off proposal may result in nominal fee increase at seaport.
Reyes, R-Saipan, met recently with CPA officials but he said there were no “concrete promises” made to the agency.
“We cannot promise anything in the absence of not knowing exactly what is the true condition of CPA,” Reyes said, adding that he and his colleagues want to see more data from the agency.
Reyes said CPA’s concerns are “very valid,” but added that CDA is opposed to the write-off.
“We should not rush anything in the absence of data,” he added. “We recognize the very legitimate concerns of CPA because of its bond indenture issues, but CDA has its own fiduciary duties and $6.8 million is a big amount of money.”
Reyes believes that the Legislature should not be asked to intervene in an issue that should be resolved by both agencies.
“Yes, the Legislature in some ways can help…but I think this should be solved amicably between the agencies,” he said.
