Financial Crime World

Local Control Key to Sustaining a Vibrant Economy in Commonwealth of Mariana Islands

Importance of Local Control Highlighted by Recent Scandal

Washington D.C. - As the Commonwealth of Mariana Islands (CNMI) navigates the complex landscape of government and lobbying, a recent scandal has underscored the significance of local control in maintaining a thriving economy.

Abramoff’s Lobbying Firm Paid Over $1 Million for Services

According to documents obtained by the Office of Public Auditor, Jack Abramoff’s lobbying firm was hired by the CNMI government multiple times between 1994 and 2001. The payments totaling over $1 million have raised concerns about the fairness and transparency of the transactions.

Demands for Refund and Increased Scrutiny

In January 2006, Governor Benigno Fitial demanded that Abramoff’s firms return much of the money paid for lobbying services, citing the “wide scandal” brought on by criminal charges against Abramoff. The controversy has led to increased scrutiny of Abramoff’s dealings with high-ranking government officials.

Involvement of Republican Bob Schaffer Questioned

The case also raises questions about the involvement of Republican Bob Schaffer in a 1999 trip to the CNMI organized by Abramoff’s firm. Schaffer later used his position on the House Resources Committee to attack reports of abuses on the islands, despite being a recipient of campaign funding from Abramoff’s clients.

Importance of Local Control and Transparency

“The Abramoff scandal is a clear example of why local control is crucial for maintaining a vibrant economy,” said a spokesperson for the CNMI government. “By working directly with our own elected officials and policymakers, we can ensure that our interests are represented fairly and honestly.”

The case has also highlighted the importance of transparency in government contracting. In 2001, Abramoff switched lobbying firms to Greenberg Traurig, writing in a letter that his new firm’s standing with the administration would be “solid” due to the presence of friends of the CNMI taking high-ranking positions.

Plans for Increased Transparency and Accountability

In response to these developments, the CNMI government has announced plans to increase transparency and accountability in its contracting processes. By working directly with local businesses and stakeholders, the government aims to create a more sustainable economy that benefits all members of the community.

“This is an important step forward for our island,” said Governor Fitial. “By putting local control at the forefront, we can ensure that our economy remains vibrant and prosperous for generations to come.”

Conclusion

The Abramoff scandal serves as a reminder of the importance of local control in maintaining a thriving economy. By working together with local stakeholders and elected officials, the CNMI government can create a more transparent and accountable system that benefits all members of the community.