Board members of Micronesian Long-line Fishing Corporation to be investigated
Palikir, POHNPEI (FSM Information Service): November 25, 2005 - Senator Isaac Figir of Yap introduced a resolution for an investigation of members of the Board of Directors of Micronesian Long-line Fishing Company (MLFC) by the Department of Justice for personal liability, either civilly or criminally, for any actions taken during their tenure as board members.
After deliberating Resolution No. 14-45, it became known that previous resolution adopted during the Second Regular Session of Congress this year 2005 regarding MLFC included the Department of Justice to investigate the company and to report its findings to the Congress. Therefore, the Congress postponed passage of the resolution to the 2007 January session if the department fails to comply with the requirements of previously adopted resolution.
The MLFC is a private corporation incorporate under the laws of the Federated States of Micronesia whose corporate office is located in Kolonia, Pohnpei. The start-up operation funds came from an investment of one million dollars from the FSM National Government and about $39,000.00 from private incorporators who borrowed the money form the National Fisheries Corporation to pay for their shares in the company.
Other money made available to the company was $4.5 million from the FSM National Government through a loan from the Asian Development Bank to be passed on the company through a re-lending agreement between the national government and the company.
The re-lending agreement is a loan payment agreement which stipulates that the FSM National Government is responsible for the payment of the ADB loan in the event the company is financially incapable to pay the loan.
Today, MLFC is under the supervision of a Receiver appointed by the FSM Court to come up with plans of revitalizing the fishing corporation of MLFC. Meanwhile, the FSM National Government, by virtue of the agreement with MLFC is paying the ADB loan about $180,000.00 per year.
During the first special session of the FSM Congress, members of Congress were outraged and expressed disappointment over the whole process and this the introduction of the resolution to investigate everyone who served on the Board since the inception of the company.
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