CNMI Congressman Gregorio C. Sablan, during his town hall meeting at the multi-purpose center last week, said he had notified the U.S. Attorney’s Office about a Korean firm, which he did not identify, that was making false pretenses in South Korea to entice investors.
During yesterday’s weekly press briefing, the governor identified the firm as Flame Sako.
The firm made a deal last year with the Department of Public Lands to build a nine-story 357-room hotel and resort on a 10-acre public land in Marpi north of the Palms Resort Hotel.
A memorandum of understanding was signed for the proposed $60 million project.
Fitial said DPL Secretary John Del Rosario Jr. already gave Flame Sako an ultimatum that it should show its financial capabilities to undertake the project or its leasehold in Marpi will be invalidated.
Reports reaching Saipan indicate that Flame Sako was claiming in a brochure that investors will be given a U.S. investor visa if they invest in the CNMI.
The governor’s photo was in the brochure.
“My picture was there and there was the misrepresentation and I told them to remove that because that is not right,” said the governor.
He said Flame Sako wasn’t capitalizing on the federalization issue to entice investors, but it just “didn’t know better.”
Lt. Gov. Eloy S. Inos reiterated that the brochure with the false advertisement was in draft form only.
Both the governor and Commerce Secretary Mike Ada said Flame Sako can still invite foreign investors to join the project under the CNMI investor’s visa.
