KPress Vol. 07 Iss. 21
Jaynes, Bill (2007-09-19). KPress Vol. 07 Iss. 21 (PDF) (Report). Kolonia, Pohnpei: Kaselehlie Press.
- Has attachment: File:YTXZ9WDW.pdf
Abstract: KPress Vol. 07 Iss. 21: NEWS: Congress on September 7, 2007 passed the Federated States of Micronesia Petroleum Act of 2007, which President Emanuel Mori subsequently signed into law, establishing a new public corporation under a newly created Title 27 of the FSM Code entitled “Essential Services”; the law authorizes the President to appoint a transitional Board of Directors, a process already underway, with the transitional board to serve for six months and empowered to execute contracts on behalf of the corporation; under the statute, the permanent Board of Directors is to consist of one member appointed by the President with the advice and consent of Congress, one member from each of the four states appointed by their respective governors, and two additional directors appointed by the President with the advice and consent of Congress from a list of private-sector candidates nominated by the four state governors; reporting notes that strict confidentiality policies were adopted to avoid the possibility of being accused of price-fixing, and that secrecy surrounding negotiations between the FSM and Mobil Oil Micronesia, Inc. (MOMI) fueled rumors and speculation circulating informally in public gathering places; during a public hearing on the proposed bill, confidential numbers and prices were discussed in a room attended only by senators, their staff, members of the Fuel Task Force, and the FSM Chief of Staff, with Fuel Task Force Chairman Peter Christian requesting that attendees keep the figures confidential until the contract with MOMI could be signed, contingent upon congressional passage of the bill; although the statute sets out the corporation’s structure in writing, bylaws had not yet been filed, making their drafting the first task of the transitional board; the article notes concerns that delays or missteps could allow a competitor to intervene with a more favorable offer, potentially undermining negotiations; additional reporting references interest from other entities, including Luen Thai, a Tan Holdings company that offered to purchase and operate the fuel facility for Pohnpei State, and S&K, a Korean firm, while emphasizing that Mobil Oil Micronesia, Inc. retained contractual obligations to operate in the FSM; OPINION / EDITORIAL: a separate piece reports on the Chuuk State audit for Fiscal Year 2006, which ended September 30, 2006, noting that auditors once again disclaimed an opinion on the state’s financial statements for largely the same reasons cited in the prior year’s audit, with the principal difference being that the Chuuk State Health Care Plan was cited as a problem in the 2005 audit but not in the 2006 audit; the editorial explains that a disclaimer of opinion is the lowest assessment an auditee can receive, indicating that while the financial statements might be accurate, extensive problems and missing records prevented auditors from verifying the results; a brief diplomatic note adds that President Mori accepted Ambassador Hughes’s letters of credence and welcomed her to the FSM, highlighting the historical and unique FSM–U.S. relationship from the Trust Territory period through the Compact of Free Association and its amended form.
