11-03-05

Hi friends, this is Harry Blalock; General Manager for radio stations KZMI & KCNM. It's that time once again to take a look at the issues of the week, and to offer some Food For Thought.

With the election this week, I will be devoting this Food For Thought to a look at the gubernatorial candidates, and giving you a list of their stands on issues from my perspective. Before I go any further, it is important to point out that I am not looking for a job from any candidate, nor have I been promised a job from any candidate, and have no ulterior motive in putting this list together. I'm fairly certain that no candidate will be entirely happy with my list, as they all have a certain amount of baggage and negatives they need to overcome. But I'm not doing this list for them, or to please them, this is intended to give you a quick overview of each of the candidates and their attributes as I see them. This list is strictly my opinion, and is based on their track records, the answers they gave in interviews they did on Island Issues, and their answers in the Saipan Chamber of Commerce gubernatorial debate. Rather than taking the list an issue at a time, I decided it would be easier for you to follow if I take each candidate and look at all their stands on the various issues, and then move on to the next candidate. To not show partiality to any candidate in the order in which they are addressed, we will take a look at them in alphabetical order, starting out with incumbent Governor Juan Babauta, followed by Benigno Fitial, Heinz Hofschneider and finally former Governor Froilan Tenorio.

It is also important to point out here that Governor Babauta was the only candidate who refused to come in and answer questions about his candidacy and track record on my morning talk show, therefore we will have to evaluate him based on his track record and his answers given in the debate.

Governor Babauta got many votes in the last election by making some grand promises and convincing people he was a new breed of politician. He had 2 Masters Degrees, and touted the importance of education. He said all the right things, and sounded like he would really make a difference. Unfortunately as we were to learn too late, those things were only from his speechwriters and advisors, and were not things the Governor necessarily believed in himself.

Governor Babauta's running mate once again is Diego Benavente. Benavente was an electrician before running for office and getting into the House. He served several terms as Speaker of the House, and then ran with Babauta for Lt. Governor in the election 4 years ago.

Governor Babauta has been a career politician and has never had any real experience in the private sector, which might explain his anti-business stance. He worked a little bit for Commonwealth Health Center in the planning stages before getting into politics. He then served in the senate, and spent the following 12 years as the Washington Representative before becoming Governor. He is a career politician, and it shows in many of his decisions and policies.

One of the most frustrating aspects of this Governor right from the beginning was his disrespect of anyone who had a meeting with him, or had to wait for him to finally show up at a function. The Governor has been chronically late for nearly every appointment he's had, so much so that people have started coming to meetings with the Governor a half hour late, knowing they'll still be early. He has also not bothered to show up for many meetings, some of them with important investors, this sends a very bad message to these potential investors. It all comes down to an issue of respect, and our Governor has shown that he really doesn't respect us or our time by being late to everything.

He promised to raise the minimum wage, helping the local workers finally get a living wage in the private sector. Here we are 4 years later, and the minimum wage hasn't changed at all. He also promised to cut the size of government. If you ask him now, he will tell you he has done that, even though he has been on a hiring spree lately that is unparalleled. He will also tell you that the personnel costs in the Governor's office have gone down since he took over, but what he won't tell you is that the figure he is referring to doesn't include all his special advisors that are being paid by independent contracts, and are not government employees. That way the Governor doesn't have to follow the salary cap and can pay them whatever he feels like.

Speaking of the salary cap, that was one of the first controversies the Governor faced. He decided to pay his personal secretary, Celina Babauta, $15,000 a year more than what the law allowed. And she wasn't the only one; there were several close friends and associates of the new Governor who were rewarded with salaries above what the law allowed. During the first year of his administration, he was required to get the authorization of the legislature to pay anyone above the salary cap. The Governor decided that if the legislature wasn't going to approve the salaries, he was just going to ignore the law and keep paying them that rate anyway. The following year the Governor line item vetoed the provision that required authorization of the legislature. He was quickly discovering there was more than one way to get around the law, thanks to the legal advice of his legal counsel Pam Brown, who would later become the Attorney General.

The Governor has also shown that it pays to be related to him as his first cousin Nick Nekai was given a $50,000 contract for 6 months, and no one is sure what it was actually for, or what was accomplished as a result of it. Nekai was later appointed to the Marianas Public Land Authority board, one that is legendary for the trips taken by its board members. By the way, the N in Juan N. Babauta stands for Nekai, just so we clear that up.

This is also the Governor who claimed that it would be "what you know, not who you know" in his administration. But he quickly proved that to be false by hiring a television reporter to be his federal policy advisor, who admitted in front of a group of people that she had no clue how to do that job, and was open to any suggestions or help. Then he also took Joe Mafnas out as the Director of Customs, who was eminently qualified, and replaced him with Jay Santos, a used car salesman who happened to be related to the Governor through his wife. These are just two of the many examples I could list.

The Governor has shown over and over that he doesn't mind using his influence to help his friends and family avoid the pitfalls of finding themselves on the wrong side of the law. One of the first examples was when he personally attended the trial of the Lt. Governor's brother, staring down the jury. The Governor also tried intervening in the trial of his cousin Pete Babauta, however, the judge was not about to be pushed around by the Governor in that case. And the Governor even showed that he would bail faithful supporters out of jail when he posted the bail personally for Oscar and Patricia Rasa. Oscar now is heading up most of the pocket meetings for the Republicans. And there have been numerous instances of cases being mysteriously dropped by the Attorney General's office where there seems to be a link to this administration.

We have lost over 2,000 businesses in the last few years, yet during last weeks debate, the Governor chose to concentrate on the 350 new business licenses that have been taken out during his administration. I wonder what percentage of those were for poker establishments, I'm guessing the figure would be staggering. Is that really what you think will help our economy? The Governor has fought the purchase of Verizon by PTI, initially because Willie Tan had a stake in the company, and later just because the company was owned by the Delgado's, a Filipino family. He has sent a very strong message to any potential business investor that this is a very tough place to do business. Is it any wonder that we have seen some very major Japanese investors pull out of the CNMI market in the last few years? The owners of the Dai-Ichi Hotel sold out and left, as did the owners of the Saipan Grand Hotel and Lao Lao Bay Golf Resort. And of course we just witnessed the departure of Japan Air Lines, and the cutback of Continental Micronesia. If our economy is really "pretty darn good" as claimed by our Governor, then why the massive exodus by businesses and Japanese investors? Something doesn't add up here, or maybe it's just more of that Babauta math.

I could go on for hours about the constant travels of this Governor, and the misuse of his position and power, but you already know all of that. In conclusion for my section on Governor Babauta, I have to say I agree with one thing I have seen in his ads recently. His latest theme seems to be "Stay On Course". If you're happy with the way things have been going, and you really do believe that our economy is pretty darn good, then yes, you should vote for Governor Babauta, because you're as delusional as he is. Since he believes that our economy is pretty darn good, he doesn't feel it needs to be fixed, and won't do anything to improve it. Since he says that our tourist arrival numbers are up 20%, you can bet that he doesn't think we need to work on replacing JAL or the loss of the flights from Continental Micronesia. He already thinks he's doing a good job, so why would he do anything different? But if you do vote for BB again, you deserve whatever mess you find yourself in 4 years from now, and you have to accept responsibility for it. You've been warned over and over again.

One of the things that I like the most about Speaker Ben Fitial is his well rounded background and experience. He spent 12 years as a budget analyst, over 10 years as a corporate executive, and has spent 12 years in the House of Representatives. These should all be things that will serve him well if he becomes our next Governor, as we need a Governor with a strong background in all those areas.

His running mate is Timothy Villagomez, who is a former Executive Director for Commonwealth Utilities Corporation, and spent the last 2 years as the Vice Speaker of the 14th Legislature. Tim is an engineer by training, and has wide experience during his time with C.U.C.

The main area that I hear people express concern about when talking about Ben for Governor is his tie to garment magnate and businessman Willie Tan. Some people seem to have the impression that a vote for Ben is really just a vote for Willie Tan. At this point, I think it is important to clear a couple things up. Willie Tan has moved on to bigger and better things, he is now the President of the Tan families global operations, and his brother Jerry has taken over as the President of all the Saipan businesses and companies owned by the family. Jerry has been extremely involved in the local community. In addition to his many business responsibilities, he has also served as a board member of the Saipan Chamber of Commerce, and serves as the President of the Northern Marianas College Foundation, which raises funds for our college and its students. Having close ties to the most prominent business family on island is not necessarily a bad thing, especially if you want them to continue pouring their dollars into the local economy. When I asked Ben the question about public perception of people linking a vote for him to a vote for Willie Tan, his response was that one of the other candidates is being financially backed by someone who operates many of the poker machines for Tan, and that candidate is the one who should really be questioned as to where his loyalties lie. The Tan family has gone to great lengths to invest in Saipan, and to be a huge contributor, as they have also bought the Century Hotel, the Dai-Ichi Hotel and the Saipan Grand Hotel, as well as numerous other businesses. I would not hold these associations against Ben or any other candidate, and do not feel it's a valid reason to not vote for them.

When asked how he will improve tourism and the economy, Ben is quick to say that he will work closely with the private sector to enact laws that will not only be business friendly to the businesses we currently have, but also to entice new investors. Ben was a member of the legislature previously when laws were enacted that paved the way for the garment industry and foreign investment. He will also tell you that he has been having discussions with various investors about coming here to do business, but they are all waiting to see what happens in the election, and they will not come here if he is not elected Governor.

Ben does not believe we should have an elected Attorney General, and prefers having an appointed A.G. He says that having a Public Auditor with prosecutorial powers is a possibility, but we would have to amend our constitution. When asked if he feels there are adequate checks and balances in government now, since there is no one who can go after the Governor when he breaks the law, Ben says that is a failure of the Attorney General's office. He says he would appoint a strong, moral and ethical Attorney General, and that would take care of the problem. He also says you would not see the same type of interference with the Attorney General's office if he became Governor. He said there will be a new Attorney General if he is elected as Governor.

Regarding the legislature, Ben says he would like to see a part time legislature and to see the size of the legislature reduced. He is also in favor of revisiting the Covenant with the U.S. to see about getting a unicameral legislature here instead of the bicameral system we currently have. He said that our current system has never worked, and it's time to go with something that will serve the people.

Ben wants to see a per diem system implemented for all members of the legislature who have to travel off their home island to attend sessions, rather than the subsistence allowance that is currently used. He said the current system is being widely abused.

He is also quick to say that education would be their top priority once they take office, and that adequate funding must be secured for our schools. While he was the Speaker in this legislature, Representative Janet Maratita tried introducing a bill that would abolish the Education Tax Credit, something that helps all schools, public and private alike. Ben said they never allowed that bill onto the House floor, because he believed it would hurt education. Janet Maratita has now joined the Republican Party; maybe they are more receptive to her anti-education stance.

Ben is against raising the minimum wage at this time, saying that we need to have a sustainable minimum wage, and the economic situation right now cannot justify a hike in the minimum wage. He said that he wants the Fair Labor Act that was passed several years ago to finally be implemented and enforced.

He does not believe that the current state of emergency declared by the Governor for C.U.C. is legal, or was the proper way to deal with the situation. He said the Governor should have appointed a new board if that was the problem. He also said the fuel surcharge is unjustified and he will do away with it. Ben says the problem is the customers who are not paying their fair share, such as the government, and we are being forced to pay for them through the surcharge.

My concerns with Ben center on his tendency to surround himself with party loyalists. When he got back in as Speaker in the 14th Legislature, he hired most of the losing Covenant Party candidates as consultants to the legislature, including one of them as his Public Information Officer. If the people he hires are truly qualified, that's one thing, but if he uses his position as an employment agency for losing party mates and friends, then that isn't much different than what Babauta has been doing. I also question whether all media will have access to Ben if he becomes Governor, and has someone in the position of Press Secretary or Public Information Officer who holds personal grudges and let's those get in the way of his professional duties. Someone like Ben should know the importance of being accessible and having people around him who put their personal feelings aside and look out for the best interests of their boss. This is something that Ben could overcome, but hasn't for the past two years, so it could be a definite factor.

Ben has said he will cut down on the size of government and will only hire qualified people, but looking at his track record in the 14th legislature, I think there is reason to question that. He also said in an interview that he will be getting rid of as many of this administrations employees as he can, and replacing them with his own people. I guess that is to be expected, but it doesn't sound much like putting politics aside once you assume office.

There is also the issue of questionable associates that Ben claims to be close to, including U.S. Congressman Tom DeLay, who has been stripped of his position of Speaker and is currently under indictment in Texas, and Jack Abramoff, a high paid lobbyist at the center of the controversy involving DeLay, and himself under indictment. During the debate he also said he is close to Bush advisor Karl Rove, who is also currently being investigated. Will our previous associations with Abramoff and DeLay drag us into a bad light as the investigations continue? I guess that's something we'll just have to keep an eye on as it develops.

Ironically, one of the things that I like the most about Heinz and that I think would serve him well as Governor is one of the things that most other people seem to dislike about him the most. He has a very strong personality, and doesn't seem to be easily swayed by people's opinions or their pressure. His critics would tell you that he is arrogant and argumentative. But I believe we are going to need a very strong Governor this next 4 years who is willing to take the heat and make some very hard decisions, and not let family ties or friendships get in the way of safeguarding the governments dwindling resources.

Heinz has spent the last 14 years as a member of the House of Representatives, serving as the Speaker of the House during the 13th Legislature. Before that he managed the family business on Saipan, getting some hands on experience with the private sector and learning the ropes in business.

His running mate is David Apatang who has served 4 terms in the House of Representatives and was a career army man before that, retiring after 20 years with the rank of 1st Sergeant. He did two tours in Vietnam during his military career. He was then the army recruiter for Guam and Saipan for several years. David also served as the Finance and Procurement Chief during Teno's second term, and has been the acting Secretary of Finance. And he has spent 8 years as a member of the legislature as both a Republican and an Independent. With David's background, experience and training, he is a very formidable candidate for the office of Lt. Governor, and someone who will be able to fill in for, or support the Governor very effectively.

Heinz plans on fixing the laws that are chasing investors away and restoring investor confidence in the government. He believes that one of the biggest reasons we have seen a departure of so many businesses is that business people no longer trust this administration, they have been burned too many times. He says that once the confidence in the Governor is restored, we will see businesses returning, right now they are just watching and waiting.

One of the areas that he thinks we've missed the boat in the last few years is in the way we market the islands. He believes we need to be much more efficient in the way we market ourselves on the Internet. Heinz wants to see a comprehensive website not only giving all the pertinent information, but linking to various businesses and hotels, so that potential tourists can make all their plans and arrangements online. He says that for the little bit of money that would cost us, it is something we should have done long ago. He also wants to establish an office representing the CNMI in Japan, where potential investors can go to get all the needed facts and information to invest here.

Heinz believes we haven't done nearly enough to protect our natural resources, and wants to make sure that our laws are followed and enforced. He pointed out that the money has been allocated to pave the road going down to Obiyan beach for several years now, but the Governor keeps reprogramming that money because it isn't high on his priority list. Heinz believes we can do better.

Heinz is in favor of meeting with businesses to come up with a plan that will raise the minimum wage, giving local workers more of an equal footing with contract workers. He believes that as the minimum wage goes up, the burden of benefits that employers now have to give to contract workers should also be scaled back. He doesn't believe that it makes sense to expect employees to transition from the government to the private sector for $3.05 an hour.

Regarding education, Heinz does not believe that the way the Governor has used the $1.2 million a year for education incentives has been effective or fair. Rather than giving laptops to only one class of students at one high school, and putting in a school based health clinic at only one school, he would rather make sure that all students have textbooks and that we are covering the basics. He wants to make sure that P.S.S. is properly funded, and that we aren't neglecting our children's education. He has pushed for a higher budget in the legislature, but due to politics, we still have not seen a new budget.

When I asked Heinz how he would handle the situation of people coming up to him constantly asking for jobs, he said that he is telling his people right now, there will not be very many jobs available, and not to expect that if you vote for him. I had to really respect that he would be that candid leading up to an election, most of the other candidates still seem to be promising their followers jobs if they get into office.

Heinz does not believe we need an elected Attorney General, because he says we have never seen the problem with an Attorney General who does not uphold the law like we have during this administration. He says the fault lies with the Governor for not appointing someone who is stronger morally and ethically. This seems to be the general consensus among the various candidates.

Heinz is also against having a part-time legislature; he believes that it would open the legislative process up to too much conflict of interest. He said the main problem with reducing the size of the legislature is that it violates the spirit of equal representation based on population because of Rota and Tinian. He said this issue is being used in this election for political purposes, that candidates are saying they support it because that's what the voters want to hear. He also fears that if the legislature were cut back it would weaken the balance of power, giving the Executive branch too much power. He said we must be careful not to compromise the constitutional mandate of the legislature.

My concerns with Heinz center on the fact that he seems to be cloistered away at times and that he doesn't get adequate public feedback on some issues. I would like to see him more involved as far as getting out and listening to concerns of the Chamber of Commerce and other business groups. I'm looking for a Governor who will be responsive to the needs of the community he lives in, and looking for every opportunity to get feedback. I'm slightly concerned that he has spent so much time in the legislature and away from the everyday working world, that he has forgotten some of what we face on a daily basis, but the same can easily be said of our current Governor.

I also feel that he needs to be careful about what he says and the follow up afterward. When he was the Speaker during the 13th legislature he said he would step down as Speaker if the House didn't pass his proposal to increase the User Fee on the garment industry. Later when the House defeated the measure, he did not step down, and seemed offended when asked about what he had said earlier. We need a governor that we can take at his word, and believe what he tells us. I'm hoping this is a lesson he learned from that experience.

Again, I feel that we really need a strong Governor and one who can stand up to all kinds of pressure. The fact that some see Heinz as arrogant is not something I am concerned with. I just hope that stubbornness translates into standing up for the law and doing the right thing for the Commonwealth. If it does, we will be better off for it.

Heinz has had the guts to stand up and say some things that may not be very popular, but that he believes are the right things to say and do. That's something I can not only relate to, but I highly respect.

Former Governor Froilan Tenorio is an engineer by training, and has run his own business before getting into politics. He was first elected to the Senate and then later served 3, 2-year terms as the Washington Representative. He then ran unsuccessfully for Governor, but then won the next time around. He served as Governor from 1994-1998. He has run for Governor in the last 2 gubernatorial elections, losing by large margins in both elections. He splintered off the Democratic Party and formed the Reform Party 6 years ago. The only candidate the Reform Party ever put into office was Ray "Kumoi" Guerrero in the senate. The Reform Party disbanded a couple years ago, and now Froilan is running as a Democrat once again.

His running mate is Tony Santos, who retired as a teacher, and has run for the House as a Democrat a couple times unsuccessfully. I really don't know much else about him.

It is true that while Froilan Tenorio was Governor, the CNMI had the highest collections and budget ever. He will tell you that it is because he went out and enticed investors to come here and that proves that he is business friendly. You need to keep in mind that is also the time when the cap was taken off the number of contract workers the garment factories were allowed to bring in. As the garment industry boomed, the amount they paid in User Fees and individual income taxes was a huge factor in the amount of money the government had to use for it's budget. Froilan also raised taxes and increased revenues that way.

One of the main things he can be given credit for is the Beach Pathway, which was put in during his term, and has proven to be extremely popular with locals as well as the tourists.

Froilan was well known for fighting with his own advisors and Cabinet Members. He is also known as the governor who fired by "fax", which left a bad taste in many peoples mouths.

Froilan was also sued for overspending the government's budget, and there was a $12 million dollar judgment against him. He then appealed that ruling, and exactly what the status of that lawsuit is seems to be somewhat of a mystery, even to him. When I asked him what happened to the lawsuit and what the current status of it was, he said he did not know, maybe he should check with the Attorney General's office to see if it was still active or not.

Froilan did not seem prepared for the Gubernatorial Debate that he participated in. The first question was about education, and in his answer, Froilan told how the government's revenues were the highest when he was Governor and that he will re-institute the Earned Income Credit program and cut the fuel surcharge from C.U.C. He never even mentioned education once during his entire response. Later he was asked what he would do about disposable waste. He thought for a minute, and then said that maybe we should make people pay for it. But after thinking about it for a few more moments, he said he didn't really like that idea, so never mind, he just wanted to skip the question.

He did seem to have his answers ready when I interviewed him on the air, but that doesn't mean that he didn't surprise me a few times anyway. When he was Governor, Froilan fought the threat of a federal takeover of our Immigration and minimum wage, and he spent millions in lobbyist fees to do so. When I asked him where he stood on a minimum wage increase, he said that he actually supports U.S. Congressman George Miller's minimum wage proposal for the U.S., which would also include the CNMI. That was such a radical departure from his previous stands; it took me completely by surprise. He said it would phase in the increases by .50 cents an hour each 6 months, and that he could live with that.

Froilan says that he will repeal the fuel surcharge on your C.U.C. bill the minute that he takes office. When asked how he will come up with the money to make up for the shortfall, his response is, don't worry about, we'll find the money. He is also promising to bring back the Earned Income Credit, which will give low-income families a check once a year to offset their low wages. During the first interview he told me he estimated that program to cost $10 million a year, and during the last interview, he pegged the amount at $6-7 million a year. But again, when asked where he will come up with this money, he says that he will grow the economy and not to worry about it, he will find the money. In my opinion, telling us not to worry about it, and that he will find the money is not really much of an answer.

Froilan also says we have major problems right now with education, and that he will increase the budget for P.S.S. The money will come as a result of his efforts to grow the economy.

Froilan is also against having an elected Attorney General or having a Public Auditor's office with prosecutorial powers. He will tell you that the current system is fine, but the reason it isn't working right now is because we have an Attorney General who is not doing her job. He said we wouldn't have to worry about that during his administration, that he will make sure the Attorney General does their job, and if they need to prosecute him for something, he will authorize that. Somehow, I find myself being just a little skeptical about that.

Froilan is in favor of having a part time legislature, and wants some controls put on what has been happening in the senate with the subsistence allowance. He says this has gotten out of control and our senators are abusing the system.

I have several concerns with Froilan and the Democratic Party. Let me start with my concerns about him personally. He seemed unprepared to answer several of the questions thrown at him during the debate, does this mean he hasn't thought about these things and doesn't have a plan? He is in favor of George Miller's minimum wage proposal? Doesn't that seek to raise the minimum wage to over $7 an hour? He doesn't know what the status of the $12 million dollar lawsuit against him is, and should maybe check with the Attorney General's office? Isn't that something he should have gotten to the bottom of before ever deciding to run for office again? And would he have the same kind of lackadaisical attitude about problems he faced when he got back in office again? If Froilan expects us to believe that he can do the same thing with the economy he did the last time he was in office, I'm afraid I'm just not buying it. We have since had the Japanese economic crisis, and the cutbacks of the garment industry. It is a far different world than it was then, and I don't think that pulling the cap off the garment industry again will make any difference at this point in time, and frankly, I'm not crazy about someone raising our taxes at this point in time. If he were going to do the same thing he did back then, raising taxes would be part of the equation.

The Democratic Party looks very weak to me. Their roadside wavings have not been well attended, and their final rally last Sunday was dwarfed in size by the Covenant Party's final rally the same day. They are putting up some of the same candidates they have had the last several elections that have come in at the bottom, or close to it. I don't hear anything new from them, and the people have rejected it the last 2 elections, I have no reason to believe that people feel any differently about it this time around. I'm afraid that Froilan may play spoiler in this election and take votes away from a candidate that has a legitimate shot at unseating Governor Babauta. In my opinion, that would be very unfortunate indeed.

Again, I would like to remind you that all the comments and views I have expressed are entirely mine. While I do not know what will happen in this election, I do know that it is the most important election we have ever had in the CNMI. It is very important that you make your vote count, and that you vote with your head, taking all the information you can gather and using it to make the best choice for Governor. I have heard some people say that it doesn't matter if they vote or not, because it will just be more of the same anyway. That is such a dangerous attitude, and it is neglecting your civic responsibility. Let your voice be heard, speak up through your vote!

I'm Harry Blalock, thanking you once again for giving me your time, inviting me into your home, and once again allowing me to share my Food For Thought.