The body is still technically suspended although the Legislature rejected the executive order reorganizing CPA under the Office of the Governor for 120 days because a separate May 13 E.O. declaring the agency under a state of emergency was issued.
This emergency E.O. is valid for a month subject to further extensions at the discretion of the governor.
As of yesterday, the governor’s office had yet to name nominees for CPA’s board.
Press Secretary Charles P. Reyes Jr. said the governor hasn’t come up with a list of potential nominees who will comprise the board, the governing body of CPA which is in-charge of all NMI airports and seaports.
“I think it (emergency E.O) would have to be extended if we don’t have a board yet. One way or another CPA has to have a management,” Reyes told Variety.
Political appointees to any government board must be screened by the Senate Committee on Executive Appointments and Government Investigation.
This committee chaired by Sen. Paterno Hocog, R-Rota, must hold a public hearing for the nominees to give taxpayers the chance to voice out their opinion on persons being appointed.
After this process is followed, only then can the Senate as a body can confirm the nominees.
On May 12, the governor dissolved CPA’s board of directors and placed the autonomous agency directly under the administration amid concerns on a potential shakedown at the agency that will further jeopardize the financial reputation of the CNMI.
The governor fears CPA’s $20 million bond indenture debt may be declared in technical default by the bank trustee.
Under its agreement with bondholders Franklin Templeton of California and Oppenheimer Funds of New York, CPA agreed to pay the bond at $1.5 million every year until 2028.
However, in 2007 Fitch Ratings downgraded CPA’s debt ratio to B+ which means there is uncertainty on how it can pay the bond.
