CNMI Investment LLC (CIL) can still seek changes to its Qualifying Certificate (QC) despite Gov. David M. Apatang signing the tax incentive agreement Thursday night, Nov. 12, with the Commonwealth Economic Development Authority (CEDA) saying the company must first formally request modifications.
CEDA board chair Frank M. Rabauliman and executive director Derek Sasamoto said Friday that CIL can accept the QC as offered, reject it, or seek changes, with the board prepared to call a special meeting as early as next week.
The clarification came after CIL corporate representative Devan Pillay warned that restrictions in the QC could make the company's proposed pharmaceutical manufacturing investment unworkable.
"It should not become a tool for imposing unnecessary restrictions or hurdles that make the investment unworkable," Pillay said, referring to the QC program in a statement read to reporters following Friday's CEDA meeting.
Rabauliman said the board forwarded its QC recommendation to Apatang about three weeks ago but subsequently learned that CIL had concerns over certain provisions requiring clarification or renegotiation.
He said the company had yet to receive the signed QC when Friday's meeting began, but the board learned during the meeting that the governor had signed it and that the document was subsequently transmitted.
Rabauliman explained that CIL must formally seek modifications before CEDA can consider negotiating changes.
"We can't even negotiate anything at this point in time until you formally request modification," he said.
Sasamoto said applicants are allowed to request changes after receiving the governor's offer and that the process provides a 90-day window.
He added that CEDA intends to address the matter sooner rather than use the entire period.
Rabauliman said a special board meeting could be called as early as next week if CIL submits its proposed changes in writing and directors are available.
The CEDA chair said the board wants to resolve the matter expeditiously while ensuring that the proposed modifications are properly reviewed.
CIL principal Matthew Toh accompanied Pillay to Friday's meeting.
Pillay said the company respects CNMI laws and supports reasonable accountability but believes the QC conditions must have a proper legal basis and be clear, fair, and practical.
"We remain interested in investing in the CNMI but we need workable terms to move forward," he said.
He declined to identify the specific provisions the company wants changed, saying discussions remain ongoing.
Pillay also stressed that CIL is not seeking government grants or loans but tax incentives that would allow the company to reinvest savings into healthcare products manufacturing, supply chain development, and local entrepreneurs.
As previously reported by Marianas Press, CIL sought a 25-year QC with extensive tax exemptions for a pharmaceutical and dietary supplement manufacturing operation on Saipan.
The proposal includes a $30 million investment fund intended to support related local businesses, although the fund previously drew scrutiny from CEDA directors over whether investments in stocks and U.S. Treasury securities would generate sufficient economic benefits for the CNMI.
The company plans to initially operate from the former National Office Supply building along Beach Road before expanding its manufacturing operations.
The exact tax exemptions and conditions contained in the QC signed by Apatang have yet to be disclosed.
For now, Rabauliman said CIL must decide whether to accept the certificate, reject it, or formally seek modifications.
Share this article:
