THE board chairman and president of Bank of Saipan has resigned.
Former House Speaker Benigno R. Fitial, the Covenant Party’s losing gubernatorial candidate, resigned yesterday during the meeting between the bank’s directors and government representatives, according to acting Commerce Secretary Fermin M. Atalig, who is also the CNMI’s banking commissioner.
Fitial declined to comment.
Former Speaker Jose R. Lifoifoi also resigned as member of the bank’s board of directors.
“I resigned (on Tuesday) because I don’t like what is going on,” Lifoifoi told Variety yesterday.
Lifoifoi, however, said he will not pull out his investments from the bank.
Steven Pixley, the legal counsel of Tan Holdings Corp., told Variety that Fitial’s decision was made by “himself.”
Two other board members of the Tan group resigned Monday upon the advice of Pixley—Jerry Tan and George Chiu.
Pixely said they will cooperate with attorney Randall Fennell, the court-appointed receiver of the bank.
However, Pixley said they may also file legal action against whoever was responsible for the bank’s current situation.
The bank’s remaining board members are Patricia V. Cepeda, Marciano Imeong, David J. Lujan, Barry Israel, former Guam Gov. Paul M. Calvo, Edward M. Calvo and Thomas J.M. Calvo.
Edward Calvo, speaking in behalf of the Calvo family, said that they are “sad” that the bank has to be under receivership.
“It is sad, but we have to protect the depositors,” Calvo told Variety.
Deputy Commerce Secretary Jesse Palacios said the Office of Public Auditor will “secure” the government’s deposit with Bank of Saipan.
Only $8 million of the $16 million in government deposits are backed by U.S. Treasury Department securities. The $16 million represents one-third of the bank’s total deposits.
A court order will be issued to spell out the role of OPA and other government agencies in this matter, Palacios said.
Fennell said a press release will be issued to inform the public on the steps being taken.
Atalig said the bank’s major shareholders and the board are committed to help the government in its effort to stabilize the bank’s condition.
Palacios said the court has imposed a procedure for the bank’s operation. Fennell has to file a petition in court which will have to approve it before any action is instituted in the bank.
“Anything the receiver wants, he has to get the court’s approval first,” Palacios said.
As receiver, Fennell will review the bank’s financial status.
Fennell was named the receiver of the now defunct Commonwealth Bank, after allegations of irregularities involving the bank surfaced in the 1980s.
