By Zaldy Dandan – Variety Editor
Finally
IN its third year in office, the administration has released a single audit report on the federal funds spent by the CNMI government from FYs 2020 to 2022. Considering that some of the previous administration’s key finance and budget officials are still in charge of finance and budget matters, we should expect more answers to any questions regarding the questioned costs.
It is also good to know that the administration is “developing corrective action plans, strengthening financial controls, and working closely with our federal partners to fix these issues and prevent them from happening again.”
We are, however, still waiting for a detailed breakdown of the previous administration’s ARPA expenditures, including those of the BOOST program — particularly the “questionable” funding awards. After the numerous House hearings conducted on BOOST since 2022, the only case filed in court over this controversy was a contempt of legislature charge, in which the defendant was acquitted.
Two years ago, Variety reported that “OPA, OAG Investigating BOOST Awards, Says Finance chief.”
What is the status of that investigation?
In any case, there should be a more conclusive investigative report on BOOST, especially since some House members themselves have acknowledged that not all disbursements were dubious and that several awardees were legitimate businesses. They should not be tarred and feathered by association.
Sadly
TOURISM arrivals — the lifeblood of the local economy — were down in fiscal year 2025 and are expected to remain low, perhaps less than 200,000 again, in FY 2026. According to business community leaders, about 500,000 annual arrivals are needed just to break even.
In response, CNMI elected officials may provide MVA with a $3.8 million budget in FY 2026, of which $1.83 million is for marketing and promotions.
Neighboring Guam has a larger economy, to be sure, and its tourism numbers — though far higher than ours — are still significantly lower (about 700,000 in FY 2025) than pre-pandemic levels (1.33 million in FY 2019). But here’s an idea of the costs it is willing to incur to revive its main industry:
In its proposed FY 2026 budget, the Guam Visitors Bureau allocates $15.4 million for marketing. GVB has also set aside funds for destination development and administration, and recently requested — and was appropriated — $10 million in supplemental funding specifically for airline incentives.
As we all know, the CNMI is competing with Guam and other Pacific islands that are also spending substantial amounts to boost arrivals and enhance their destinations.
Perhaps instead of merely touting the proverbial “light at the end of the tunnel,” the CNMI government should find more ways to help MVA promote and improve the islands’ appeal to tourists. Meanwhile, the central government’s cost-cutting measures must continue — and perhaps be expanded.
Zaldy Dandan is the recipient of the NMI Society of Professional Journalists’ Best in Editorial Writing Award and the NMI Humanities Award for Outstanding Contributions to Journalism. His four books are available on amazon.com/.