1

U.S. COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS (CNMI)

STATUS REPORT

December 2008

By Wendy L. Doromal BACKGROUND From 1984 to 1995 I lived and worked as a teacher and human rights advocate in the U.S.

Commonwealth of the Northern Mariana Islands (CNMI). Since 1992, I have submitted reports and

testimony for U.S. Congressional Hearings on the labor and human rights abuses in the CNMI and issues

related to the foreign contract workers. They have been given to members of the U.S. Congress,

Congressional Committees, CNMI, Philippine, Bangladesh, and U.S. government officials, the United

Nations Office of the High Commissioner for Human Rights, and national and international non-

governmental agencies.

This is a report that updates the current status of the alien workers in the U.S. Commonwealth of the

Northern Mariana Islands (CNMI), details issues which are relative to the imminent immigration changes,

and makes recommendations for policies and regulations relating to PL 110-229. In July 2007, I

interviewed foreign contract workers on Saipan, Rota, and Tinian. In December 2007, I returned to the

CNMI to conduct further interviews with foreign contract workers on Saipan. Finally, I conducted

interviews on Saipan, Tinian, and Rota in July and August 2008. Within the six-month period of my last

two visits to the CNMI, I found that the deterioration of living conditions and the erosion of guest

workers’ rights were staggering.

PL 110-229 is legislation that I have supported and embrace as a means of providing a just immigration

system to a U.S. commonwealth that has lacked one for decades. It is extremely important that federal

officials understand the living and working conditions and concerns of not just the residents of the CNMI,

but the non-resident workers, since federal officials from the Departments of Homeland Security, Interior,

State, Justice, and Labor are now drafting the regulations for the federal guest worker program.

To evaluate the status and concerns of the nonresident workers, I conducted face-to-face interviews with

hundreds of guest workers from the Philippines, Bangladesh, China, Nepal, Vietnam, Thailand, Korea,

and Sri Lanka. I also met with U.S. citizen children of guest worker-parents, with attorneys, leaders of

guest worker movements, CNMI and US government officials, religious leaders, and social workers.

2

Legal documents, contracts, notes, videos, and photographs document the findings. For privacy purposes

and to protect the guest workers from retaliation, hereinafter, the job category and nationality will

describe the worker.

FINDINGS

Poverty and Living Conditions

The CNMI labor and immigration laws have created a two-tiered society in the CNMI. Residents are

primarily employed by the local government in the islands’ highest paying jobs, while foreign contract

workers earn poverty-level wages in the bottom tier. According to the August 4, 2008 GAO report, the

median household income in the CNMI fell from $22,898 in 2000 to $17,138 in 2004, and the per capita

income in the CNMI decreased from $9,151 in 2000 to $6,178 in 2004.1 Over 46 percent of households in

the CNMI are earning below the poverty rate, as compared to less than 13 percent of households in the

U.S. mainland earning below the poverty rate. The child poverty rate exceeds 50% in three of Saipan’s

districts.2

The poverty is evidenced in ramshackle housing, abandoned garment factories, and boarded up businesses

on Saipan. Rota has become a virtual ghost town as businesses have closed and Rotanese families have

moved to the mainland or Guam seeking work and greener pastures. Karidat, a social-services agency that

provides food and shelter for the needy, had the largest increase in clients in ten years in 2007 with 4515

clients.

The Consumer Price Index for the period of July to September 2008 rose to 120.2 compared to 113.8 for

the same period in 2007, according to latest data from the Department of Commerce.3 Those figures

reflect a 14.7 index increase in housing and utilities, a 9.6 index increase in food, and a 3.4 index increase

in medical care.

The economy of the CNMI is in shambles. Guest workers and residents alike are suffering from the high

cost of gasoline, commodities, and the highest utilities rates anywhere on U.S. soil.

1 Commonwealth of the Northern Mariana Islands: Managing Potential Economic Impact of Applying U.S. Immigration Law Requires Coordinated Federal Decisions and Additional Data, by the U.S. Government Accountability Office (GAO), August 4, 2008. 2 Saipan Tribune, 'CNMI yet to achieve same status as US', by Rianne Pangelinan-Brown, January 19, 2008. 3 Saipan Tribune, COMPARED TO JULY-SEPTEMBER 2007 Consumer prices rise in Q3, by Kristi Eaton, November 15, 2008.

3

Housing

Housing, for the majority of the guest workers, is substandard. Many guest workers pool their meager

wages to share houses or rent tiny rooms. I visited a family where the parents live with their two U.S.

citizen children in a room that is no more than 8 feet by 8 feet. They share a bathroom and outdoor

kitchen with four other families that also have tiny rooms for living quarters. Rusting shipping containers

on the property are home to rats. A security guard and a co-worker share a cramped apartment up a steep

flight of rotted wooden stairs. It had one tiny window in the kitchen and was dark and shabby with ants

crawling everywhere. A family of seven lives in a small 4-room shack with cement floors and a tin roof.

Also living with them are two relatives with pending labor cases. A table composed of scraps of wood,

some folding chairs, and futons on the floor are the only furniture.

Some single men, families, and women rent small rooms in a steamy, decaying barracks that lacks air

conditioning and basic furniture. Several of them said that they were three or four months behind on

paying their rent. They were anxiously waiting for their stimulus checks, unpaid judgments for back

wages they were owed, or tax returns from years past that they never received so they could pay the rent

before they were evicted. Others lived in dilapidated houses located in narrow alley ways, in rooms that

once held businesses within abandoned buildings, and in unfinished shacks.

Higher paid guest workers live in apartments or houses that are comparable to those inhabited by the local

residents. However, the majority of the guest workers huddle in dormitory-style quarters or substandard

housing that could not possibly pass stateside building codes.

A foreign contract worker who is behind on paying his rent told me that his landlord padlocked his room

with all of his possessions inside. He asked for advice since he has a labor case against his employer for

unpaid wages and is still waiting to receive his stimulus check. More and more foreign workers with

labor cases find themselves in similar situations. They are relying on friends and fellow non-resident

workers to provide them with food and a place to sleep while they search for a now job in a market that

has few open positions. They wait for back wages which can take months and even years to receive. In

fact, under the dysfunctional labor system, many will never receive the wages they are owed. I have been

told that currently there are so many unemployed guest workers waiting for back wages and seeking

employment that the community of employed guest workers can no longer afford to care for all of them.

4

Electricity: Commonwealth Utilities Corporation

The state of the power situation in the CNMI is at crisis level affecting the quality of life of all residents

and nonresidents, as well as having a devastating effect on the commonwealth’s economy. In July and

August 2008, during my stay on Saipan the occurrences of blackouts ranged from twice a day to five

times a day, and lasted for up to 8 hours at a time. In mid-August blackouts lasted for as many as twelve

hours a day or more.4

Incredibly, residents and guest workers that I interviewed reported that even though the electricity was on

for fewer hours a day and they were taking conservation measures by turning off the air conditioning and

limiting the use of appliances and lights, their bills continued to rise. In July and August 2008 the price

of electricity that the Commonwealth Utilities Corporation (CUC) charged residential customers peaked

at 42.9 cents per kilowatt-hour for the first 500 kWh, going up to 54 cents per kilowatt-hour for

residential customers exceeding 2,000 kWh.5 Businesses were charged even more than residential

customers.6 Not surprisingly, several businesses have blamed high CUC electricity rates for their closure.

Since the price of oil declined, November’s electricity rate was 27 cents per kilowatt-hour, still extremely

high. That figure excludes all of the “surcharges” that CUC adds to its bills.

Many guest workers reported that they have had their electricity cut because they could not afford to pay

the outrageous power bills. It is estimated that as many as one quarter of Saipan residents no longer have

any electricity due to the prohibitive cost.7 Others took drastic measures to reduce their use of electricity.

One guest worker told me that he went to his rented room only to sleep, because it was hot and dark

without electricity. He joined other workers to spend evenings in air-conditioned restaurants where they

ordered the cheapest item on the menu or a drink to share. Another guest worker on Rota closed up the

house he rents, and screened in the carport. The family lives and sleeps primarily in the breeze-cooled

carport to save electricity costs.

The poverty and inability to pay for basic needs such as electricity have resulted in tragic consequences.

In January 2008, a family was left homeless by a house fire. A candle that was used for light, since the

4 Marianas Variety, 12 hour blackouts, by Gemma Q. Casas, August 11, 2008. 5 Saipan Tribune, CUC's August fuel rates still at all-time high, by Ferdie de la Torre, August 1, 2008. 6 Ibid. 7 Marianas Pride, The Time is NOW, http://marianaspride.blogspot.com/2008/09/time-is-now.html, Ed Propst, September 5, 2008.

5

electricity had been cut, triggered the fire. A November 2007 fire, also caused by a candle, burned another

house to the ground.8

Residents and business owners stated that valuable equipment and appliances have been destroyed by

power surges. Several guest workers lamented the destruction of their computers due to power surges,

saying that they could not afford to replace them. A CNMI lawmaker considered introducing legislation

to recover costs of damaged appliances and equipment from CUC.9

The constant power outages caused chaos as traffic lights were continually out at three and four way

stops.10 In fact, in August I had to swerve out of the way of an oncoming car to avoid being hit while

trying to pass at a blacked out traffic light. The safety of the passengers arriving at Saipan’s airport has

also been questioned. In July, two Northwest Airlines planes from Japan with over 200 passengers

onboard were stranded for an hour when the power went out and the backup generators failed to operate.

The problems at the airport continued throughout August when a three-hour outage delayed two flights

bound for Korea and Japan.11. In November 2008, another three-hour power outage delayed a departing

Northwest Airlines flight for 2 hours.12

More disturbing is the fact that many blame the power situation on mismanagement of the CUC and

corruption. On August 11, 2008, Lt. Governor Timothy Villagomez, Commerce Secretary James Santos,

his wife Joaquina Santos (the lieutenant governor’s sister), and former CUC Director Anthony Guerrero

were indicted on federal charges of alleged theft of federal funds, wire fraud, and conspiracy to defraud

the federal government. The Commonwealth Utilities Corporation is reportedly also under investigation

by the FBI for a contract agreement between CUC and the Commonwealth Industrial Supply Co. Inc.

(CISCO), which was funded by $885,000 in federal funds.

The CUC has spent an estimated $16 million in maintenance and repair of their engines over the last two

years to no less than nine contracted companies, yet the engines still fail to function at full capacity or at

all. The Office of Insular Affairs has given the CUC $9 million, some of which is not accounted for.

Additionally, several companies were contacted to repair engines and failed to complete the work,

8 Saipan Tribune, Candle triggers fire in CK, by Agnes Donato, January 26, 2008. 9 Marianas Variety, Lawmaker may introduce bill on appliance damage claims against CUC, by Raymond A. Martinez, July 1, 2008. 10 Marianas Variety, Letter to the Editor: Welcome to the funeral, by Superior Court Judge Kenneth Govendo, August 8, 2008. 11 Saipan Tribune, Power outage snarls airport, by Nazario Rodriquez, Jr., August 22, 2008. 12 Saipan Tribune, Three-hour islandwide outage delays flight, by Kristi Eaton, November 7, 2008.

6

including DCM contracted for $1.5 million to repair two engines on Saipan, and CISCO contracted for

$885,000 to repair engines at Power Plant 2 on Saipan. The CNMI government has not disclosed how

much of the money was actually paid to all of the contacted companies. 13

Governor Benigno Fitial has attempted to solve the CUC crisis by signing emergency declarations, which

give him complete control of procurement processes. He signed the first one on August 1, 2008 and has

extended it four times by 30 days each time.14 By bypassing the CNMI legislature, he made a deal with

Aggreko to rent generators to provide electrical power at a rate of $504,000 a month. Blackouts have

decreased significantly since Aggreko set up its generators on September 12, with a reported 44 hours of

blackouts in October, as compared to 321 in September. There were 3,112 hours of blackouts for the

entire year from January to October 2008.15

Yet, residents worry that the CNMI government does not have the funds to continue to rent the generators

and are waiting for the lights to go out. The CNMI government cannot afford to pay all of the companies

it has contracts with for the electrical generation they provide. The CUC owes Pacific Marine and

Industrial Corp., which operates Power Plant 4, more than $1.5 million.16 The CUC paid Aggreko the

$504,000 owed to it for a bill due October 2008, a month late.17 The $504,000 owed to Aggreko on

November 12 has not been paid as of November 30, 2008, and the December bill is approaching.

Telesource, a contractor which provides electric power on Tinian, was owed over $800,000 in August

2008.18

Several CNMI legislators joined hundreds of others at a September 17, 2008 CUC protest to ask President

Bush to declare the Commonwealth Utilities Corp. under a federal state of disaster, and to petition to

place CUC under a federal court-appointed receivership.19 Recently, the U.S. Department of Justice and

the EPA have sued the CNMI for failing to follow federal laws regarding water, sewer, power, and

fuel. The complaint states that CUC violated the Clean Water Act and the Safe Drinking Water Act.20

13 Saipan Tribune, FOR FAILING TO FIX POWER ENGINES ON TIME CUC terminates DCM contract, by Agnes E. Donato, July 12, 2008. 14 Saipan Tribune, CUC emergency extended-again, by Kristi Eaton, December 4, 2008. 15 Saipan Tribune, 3K hours of outages so far, by Kristi Eaton, November 12, 2008. 16 Saipan Tribune, 'CUC owes PMIC $1.5 million', by Kristi Eaton, November 21, 2008. 17 Saipan Tribune, CUC makes second $500K payment to Aggreko, by Kristi Eaton, November 20, 2008. 18 Marianas Variety, Lack of power affects Bridge Investment project on Tinian, by Raymond A. Martinez, August 8, 2008. 19 Marianas Variety, Hundreds join CUC protest, by Junhan Todeno, September 18, 2008; Saipan Tribune, Residents, non-residents join CUC rally, by Kristi Eaton, September 19, 2008. 20 Saipan Tribune, DOJ and EPA file complaint against CUC, by Kristi Eaton, November 20, 2008.

7

Over the years, the federal government has poured money into the CUC, yet the problems continue to

worsen. The recent lawsuits are an indication that the federal government is trying to end the corruption

and violations involved with the CUC, but a definitive plan needs to be formulated to get the utility

operating ethically and efficiently.

Gasoline

Gasoline prices in the CNMI reached much higher levels than those in the mainland, with Mobil stations

selling regular gas on Saipan for $4.97 per gallon for self-service, $5.10 for full service, and $5.89 for

diesel in August 2008. Gas prices on Rota and Tinian were higher. By November 2008, gasoline prices

fell to $3.12 on Saipan and $3.47 for diesel, still considerably higher than prices in the mainland.

The only gas station in Sinapalu Village and the gas station near Pinatang Park on Rota that were open in

2007 when I visited have since closed. There is now only one gas station still open in Rota, in Songsong

Village. More guest workers are bicycling, walking, and sharing rides because they cannot afford the

price of gas, which for many costs more per gallon than their hourly wage.

Food and Commodities

Many guest workers pool their money to share what little food they can afford. Some, who told me that

they ate two meals a day last year, now eat one meal and maybe a snack per day. The CNMI Commodity

Price Index recorded over a 19 percent increase in food costs within the CNMI over a ten-year period,

with food costs increasing a 7 percent from 2007 to 2008.21 On Rota, in August 2008, a dozen eggs cost

$4.50, a sack of rice cost $39.95, and a 6 ounce bottle of shampoo cost $5.95. Food and commodity prices

are not much lower on Saipan. Water prices on Saipan, where tap water is undrinkable, have risen 5 cents

per gallon since June 2008.22 This year a Filipino man drowned in rough surf while he was fishing to

provide food for his family.23

Based on statistics and recent news articles, of the 8,373 households in the CNMI, 2,616 or about one-

third are on food stamps, with two-thirds of the islands’ children receiving federal assistance. Millions of

dollars are poured into the CNMI each year to support such poverty-related programs. U.S. citizens make

up 80% of the public sector workforce with the higher paying salaries, while non-resident workers make

up 80% or more of the private sector workforce where the salaries are much lower, with the federal

21 Saipan Tribune, NAP needs $5M more to meet rising food cost, by Rianne Pangelinan-Brown, May 29, 2008. 22 Saipan Tribune, Bottled water prices jump, by Stefan Sebastian, June 11, 2008. 23 Saipan Tribune, Fisherman drowns near COP cliff line, by Agnes E. Donato, February 15, 2008.

8

minimum wage of $4.05 an hour as set by PL 110-28, which was signed into law by President Bush on

May 25, 2007. In fact, the minimum wage of $4.05 is not a living wage for the residents or the

nonresident workers. Additionally, there are many workers who are exempt from the federal minimum

wage and earn the CNMI minimum wage of $3.05 an hour.

The poverty in the CNMI is to some extent government-imposed, and can be reversed by taking

appropriate actions such as honoring the minimum wage provisions of PL 100-28 that incrementally raise

the minimum wage in the CNMI by 50 cents a year until it reaches the U.S. minimum wage of $7.25 per

hour. The CNMI government is continually lobbying to stop the increases. Last year, there was an

attempt to delay the minimum wage increments, which would have had a devastating effect on the poorest

residents in the CNMI. Additionally, CNMI labor laws promote poverty by restrictive policies that

prohibit guest workers from working for multiple employers. A free and open labor market would not

only lessen the poverty, but would contribute to the economic recovery of the CNMI.

Healthcare

The quality of healthcare for the guest workers has continually deteriorated. Since the minimum wage

was raised in May 2007, some employers have cut workers’ hours from 40 to 32 per week, and have

illegally taken away benefits. Even though under CNMI labor law, employers are responsible to cover

their employees’ healthcare costs, workers report that their employers have often refused to bear these

costs. Some have stated that their employers told them that they could only be renewed if they would

agree to pay for their own health care expenses.24 A non-resident worker on Rota told me that every year

all of the employees of one large business have to pay for their own physicals if they want to be renewed.

She said that they each pay over $100 for the physical, x-ray and lab tests. The alien worker related that

the medical attendee doesn’t even see each patient for more than one minute, which she described as

infuriating, considering the cost.

There have been dozens of Equal Opportunity Employment Commission (EEOC) complaints filed by

workers against employers who terminated them because of pregnancy or other medical conditions.

Workers are frustrated because there is no EEOC office in the CNMI, and the office in Hawaii that is

handling the cases is months, and even years behind on investigating many complaints. Guest workers

who call the Honolulu office reported receiving the response that the complaint is still being investigated.

There needs to be a time limit on how many months a person has to wait to have their complaint

24 Email from pregnant alien worker who was denied healthcare benefits, dated May 18, 2008 is attached.

9

investigated and decided. It would also be beneficial for the EEOC to schedule quarterly visits to the

islands or open an office in the CNMI.

Guest workers with children have to bear the costs of their children’s medical care on below poverty level

wages. Medical costs in the commonwealth are ridiculously high. In July 2007, a Chinese mother asked

the Commonwealth Health Center (CHC) for the cost of a circumcision for her son, and was quoted

$250.00 for the cost of the procedure. After the procedure was performed in March 2008, she received a

bill for $7,901.82. She said she would have flown to Hong Kong to have the procedure done if she had

known it would have cost so much.25

In an April 2008 letter to the editor, former CHC physician, Joe Livingston, MD. Wrote:

Every year there are children that die in the CNMI who would have lived if they had the chance

to get care at a place with more resources. Dying children evoke sympathy, and maybe a few

stories of the realities of practicing medicine in the CNMI along with a plea for help might lead to

some more help. Right now Federalization seems limited to fixing problems with CNMI

immigration, but wouldn't it be wonderful if the feds would take over CHC? 26

Parents report that they had to resort to trying home or herbal remedies to treat themselves or children

because they could not afford medical care. Dental care for many workers is non-existent.

There is a problem with attracting and retaining physicians and other healthcare workers at the

Commonwealth Health Center. The salaries are not competitive, working conditions are not the best, and

the hospital is reportedly under-funded and understaffed. Governor Fitial vetoed a bill that would have

allowed an exemption to the government-imposed salary cap of $50,000 for hiring physicians and

professionals.27 The only physician on Tinian resigned on August 1, 2008, and it is reported that it may

take as long as six months to replace him.28 The only dentist on Rota resigned many months ago, and the

guest workers reported that they would have to travel to Saipan at their own expense to see a dentist. A

July 2008 newspaper article stated that the hospital is understaffed with nurses.29 Additionally, there are

25 Saipan Tribune, $7,901 for a circumcision, by Rianne Pangelinan, March 29, 2008. 26 Saipan Tribune, Letter to the Editor: What a $7,901 circumcision really means, by Joe Livingston, MD, MPH, April 2, 2008. 27 Marianas Variety, Fitial rejects bill exempting professionals from salary cap, by Gemma Q. Casas, August 14, 2008. 28 Saipan Tribune, Finding a doctor for Tinian poses challenges, by Kristi Eaton, August 1, 2008. 29 Marianas Variety, CHC has 1 nurse for every 6 patients, by Moneth G. Deposa, July 9, 2008.

10

reports that nurses from the Philippines are now applying for positions in Australia that offer higher

salaries, benefits, and future immigration status.30

The CHC takes in $15 million annually and spends $30 - $40 million annually in operating expenses

according to CNMI Finance Secretary Eloy Inos.31 The CNMI Medicare/Medicaid funds are under the

control of the governor’s office, which is free to send the money to whatever medical office it wishes,

with very little oversight, according to a letter to the editor from Dr. Thomas D. Arkle, Jr.32 The local

CHC and medical facilities received no money, while off-island hospitals under the threat of refusal of

future referrals received the pot of federal funds. The local facilities are now in debt and have no money

to stay afloat and provide quality services.

The CNMI Department of Health reported that the expenditures of the local Medicaid program average

$10 million annually. The CNMI is operating under a 50-50 matching fund arrangement with the federal

Medicaid program. However, the federal share is capped at a fixed amount regardless of the total

Medicaid cost. During the fiscal year 2007 the cap was set at $4.58 million. The CNMI government has

to pay for anything above the cap, or about $5.42 million. The CNMI government has been asking the

U.S. government to remove the cap and to increase the federal share of Medicaid costs to around 77

percent, which is what U.S. mainland states get.33 This needs to be done.

Guest workers who need referrals to off-island hospitals often have difficulty getting them. Several guest

workers I spoke to were referred to hospitals in the Philippines, but their employers would not pay for the

medical expenses. In a recent case, a Filipino construction worker was referred to a Philippine hospital

where he learned that he needed an $11,000 bypass surgery. The employer said he would pay for the

operation, but never contacted the worker, who was forced to return to Saipan five months later without

having the operation. His employer told him he was not going to be renewed because of his heart

condition.

There are few private medical centers and physicians in the CNMI that are not affiliated with the CHC.

One facility that served many guest workers, the Island Medical Center, was closed down by the CNMI

Department of Health on March 6, 2008 for allegedly counterfeiting, falsifying and forging lab result

30 Saipan Tribune, Letter to Editor: Exodus of Nurses, by Canary Miquel, February 26, 2008. 31 Marians Variety, Finance: Public Health generates only $15M annually, by Moneth G. Deposa, August 14, 2008. 32 Saipan Tribune, Letter to the Editor: Medicare, by Thomas D. Arkle, Jr., April 3, 2008. 33 Saipan Tribune, ‘Medicaid cap hurts NMI’s poor’, by Rianne Pangelinan-Brown, January 13, 2008.

11

records in support of health clearances.34 Over 400 non-resident workers were denied access to their

exams and tests that are required for health permits and clearances needed for their contract renewals.35

The physicians also could not write prescriptions for patients since over 33,000 medical records were

trapped inside. The medical center did not re-open until November 2008, after it moved to a new

location36.

In June 2008, the Department of Interior’s Office of Insular Affairs released a $360,000 grant for an

organizational review at the Commonwealth Health Center. The government’s plan is to change the

Commonwealth Health Center to an autonomous agency.37 Clearly, there is lack of quality medical care in

the CNMI and access to medical care is unavailable or limited for the indigent alien workers.

Problems for Parents of U.S. Citizen Children

The guest workers’ children who are born in the CNMI are United States citizens, yet they are treated as

second-class U.S. citizens. The August 4, 2008 GAO Report stated that one quarter of all U.S. citizen

children living in the CNMI have non-resident parents. While the report claims that there are between

3,217 and 4,728 children who are U.S. citizens living in households headed by a non-U.S. citizen, I

estimate the figure to be over 5,000 based on surveys by the worker group Dekada.

Right now the major concern of the non-resident worker parents is, “What will happen to my children if I

am repatriated or deported?” I interviewed hundreds of parents of U.S. citizen children over the last two

years. Most of the parents are long-term non-resident workers who have lived, worked, and established

roots in the CNMI for 5, 10, 15, 20, or 30 years or more. They told me that they sacrificed the most

productive years of their lives working in the CNMI. Many fear that they are too old to be employed in

their homelands where there are few jobs, and those jobs go to the younger applicants. They also fear

they are too old now to be recruited to work in other countries. Over and over again, I heard from these

workers that they will be doomed to face a life of poverty, for themselves and their families, if they are

deported or repatriated.

To these children, the CNMI is the only home they have ever known. They have attended school in the

commonwealth for their entire lives, have established friendships, and formed community ties through

church and other civic organizations. They do not want to leave; they are afraid to leave. Most cannot

34 Saipan Tribune, Island Medical closed down, by Rianne Pangelinan-Brown, March 6, 2008. 35 Saipan Tribune, Over 400 medical records trapped inside IMC, by Rianne Pangelinan-Brown, March 25, 3008. 36 Saipan Tribune, Island Medical moves clinic to Chalan Kanoa, by Kristi Eaton, November 07, 2008. 37 Saipan Tribune, Public Health backs hospital privatization, by Agnes Donato, May 21, 2008.

12

speak the language of their homelands. In fact, some children I interviewed had a distinctive Chamorro

accent. If forced to leave the islands, the parents would be jobless and unable to provide their children

with adequate housing, nutrition, healthcare, and basic essentials. One parent on Rota said that he has

worked in the CNMI for 19 long years. He sold all of his land in the Philippines long ago, and has no

home in the Philippines. He said if his two daughters were to be exiled with him and his wife to his

homeland, they would be living in Smokey Mountain, the famed dump in Manila where the poorest

Filipinos exist by looking for food in the mountain of trash.

In their parents’ homelands, the U.S. citizen children would be foreigners, and in some cases, would not

be able to attend public school or receive social benefits unless the parents paid huge sums of money. In

October 2007, I received a letter from Jianzhu Deng, a Chinese national who has worked in the CNMI

with his wife, Fuwan Zheng, for more than ten years.38 They have four children; three of them were born

in Saipan and are U.S. citizens. They sent the children back to China to live with their grandparents and

were told they must pay 20 thousand yuan39 ($2,698.33) per U.S. citizen child, or 60 thousand yuan ($8,

0965.00) total for them to attend school. If they surrender their children’s U.S. passports for a Chinese

passport, they will be charged one hundred fifty thousand yuan per child, for a total of $450,000 yuan

($60,712.36) in fines because they have more than one child. The Chinese government allows one child

per couple. They do not have the money to pay these costs and they do not want their children to lose

their U.S. citizenship. These U.S. citizen children are now in Saipan studying at Garapan Elementary

School, but with no permanent status, the family fears that they will be forced to exit the CNMI.

The non-resident parents of U.S. citizen children with disabilities and chronic medical conditions have

formed a group to petition the CNMI and federal officials for status for non-resident parents to be able to

stay with their children on U.S. soil for humanitarian reasons. It is reassuring to know that some CNMI

legislators and indigenous groups have joined in appealing to the CNMI Department of Labor and to the

federal government to consider the plight of the parents and their US citizen children.40 They note that the

medical treatment and therapy available to these children in the CNMI would not be available in rural

areas of the Philippines and other third world countries. Some of the children are not healthy enough to

travel to foreign lands. The CNMI Department of Labor has told the parents that they can leave their

children in the CNMI with friends or family. What parent would leave a child, especially one who needs

medical care or is disabled?

38 Letter from Jianzhu Deng is attached. 39 The exchange rate on November 11, 2007 was one U.S. dollar was equal to 7.4120 yuan. 40 Saipan Tribune, Lawmakers to urge help for workers' children, by Stefan Sebastian, July 23, 2008.

13

Janet Curioso, spokesperson for the parents of disabled U.S. citizen children, said that the children are

being treated as second-class citizens because their parents are foreign guest workers. In an August 2008

letter to Igor V. Timofeyev, the Director of Federal Immigration Policy and Special Advisor for Refugee

and Asylum Affairs, Ms. Curioso wrote, “We are knocking on your heart as parents to please look into

our case with mercy and sympathy.”41

I have received hundreds of letters from foreign national parents and their U.S. citizen children pleading

for status for these parents. In February 2008, I hand-delivered over 180 letters to members of the U.S.

Congress and the Department of Interior’s Office of Insular Affairs.42 The letters and emails I have

received over the last year from the parents and children reveal their anguish and concern. Here is an

email I received in August 2008 from one child who suffers from chronic illnesses and is disabled:

August 13, 2008

RE: Elena M. Dariguez

(139040) – Please Help

To whom it may concern,

My name is Julius D. Inocencio. I am a 13 year old U.S. Citizen, schooling at Hopwood Jr. High

School. I am disabled with a complicated health history. I wrote this letter because I am

concerned of my mother’s status here in Saipan. She is now an unemployed immigrant. My

mother plays a very important in my life; she’s my strength and the light in the darkness of times

when I am struggling and in pain ever since I was born until now. She has contributed so much

love, support, and caring to my sister and me, and without her I don’t know how our life will be. I

will be left here alone without any relatives. I am having an upcoming surgery at the age of 15 or

so, and I need my mother to be there to support me. I know that I am not old enough to sponsor

my mother, that’s why I am begging and respectfully asking a favor of you to help her become a

legal U.S. citizen or at least make her stay legally here in Saipan until I am old enough to sponsor

her. Sir, even though I have a few physical disabilities, with the love, support, and care that my

mother gives me, I feel very secured and content. As a child, I am full of dreams and have an

ambition to become a president, a scientist, an astronaut, or a king someday, but right now, I have

to put those dreams aside at first, because for now, my biggest dream is how and what I can do to

41 Letter from Janet Curioso to Igor V. Timofeyev dated August 5, 2008 is attached. 42 Selected letters from non-resident workers and U.S. citizen children are attached.

14

help my mother remain here in Saipan, that’s why I am asking your help madam Human Rights

Advocate Wendy Doromal and all the lawmakers that are working together, sirs and madams,

with all my respect, I am begging you to please help her improve her status or make her stay here

legally, and I am praying, in the holy mighty name of Jesus Christ, the only son of the almighty

God the Father, please help my mama in any way that will make her stay here in Saipan, so we

can still be together, and not get separated from each other. Thank you so very much for helping

and taking your time to read this letter. I hope that you will take action to this letter and may

God bless America.43

There are thousands of non-resident parents of U.S. citizen children residing in the CNMI who live every

day in fear of not being renewed, and having to return to their homelands where they have no property, or

job prospects. To knowingly deny U.S. citizen children of an education, needed health care, and basic

necessities including shelter and food would be an unconscionable act. To allow them to be sent to

strange foreign lands to live a life of poverty would be immoral. To exile parents of disabled and

chronically ill children is inhumane. How can the members of the U.S. Congress and federal officials

close their eyes to the fate of 5,000 or more U.S. citizen children and their families? These children are no

less United States citizens than those born of U.S. citizen parents. Our nation has a responsibility to

provide protection and equal rights to them.

Concerns About Status for Various Groups in the CNMI

Aside from non-resident parents of U.S. citizen children, there are several groups of residents and non-

residents in the CNMI who have specific status under the CMNI immigration system. They fear that their

status will be adversely affected when federal immigration goes into effect. They do not know if their

categories will be removed, if their categories will be recognized and allowed to continue, or if they will

have their status elevated. They must be given some status under the federal immigration system. The

following categories of residents and non-residents need to be addressed by the federal government.

CNMI permanent residency

In July 2008, when visiting Tinian, I met with over 200 foreign contract workers, non-residents and

residents on Tinian. When a CNMI “permanent resident” expressed that he has worked and lived in the

CNMI for 34 years he received cheers and thunderous applause from the crowd. He said he is one of two

43 The email from Julius D. Inocencio is attached. This child appealed to the US Congress through a video tape that I submitted to members of Congress and committee members in August 2008. The video can be viewed at: http://www.box.net/shared/ugpnf5odbv .

15

residents of Tinian with permanent CNMI residency status. Those granted that status are allowed to live

and work in the CNMI, but they are provided with no political rights such as the right to vote in elections

and they have no pathway to U.S. citizenship. There are an estimated 200-250 people who obtained this

CNMI permanent residency status from the late 1970’s when the law was initiated until the early 1980’s

when the law was repealed. The gentleman showed me his Filipino passport, saying he lacks the same

privileges as a “true” CNMI resident who is a U.S. citizen with a U.S. passport. He said he was frustrated

that he cannot travel to Guam without getting a visa, and although he has been a member of the

community for over three decades, he still cannot vote. He wants to be a U.S. citizen. It is recommended

that all of the people who fall under this category be given the option of applying for green cards.

Alien spouses and children

Aliens married to U.S. citizens, and any of their minor children, are not required to apply for green cards

in the CNMI. The CNMI government awards them immediate relative status, which allows them to

remain in the CNMI. The status must be renewed annually. After June 1, 2009, alien spouses and their

children will most likely need to apply for a green card to retain some kind of status in the CNMI.

As the wife of a former foreign contract worker who went through the process of obtaining green cards

for my husband and a child, I can say that one major barrier for U.S. citizens residing in the CNMI, is that

there is no U.S. Citizenship and Immigration Services Office in the CNMI. In addition to the expenses

for the processing fees, the medical exam, and other documents, the applicant will have to pay for airfare

and hotel expenses to travel to off-island for all interviews.

Widows and widowers of U.S. citizen spouses

Under the current CNMI immigration system the widows and widowers of U.S. citizen spouses who have

not applied for green cards are allowed to keep their immediate relative status and remain in the CNMI.

Again there is no corresponding federal status for these people.

Alien spouses who divorce their U.S. citizen spouse

Attorney Jane Mack of Micronesian Legal Services outlined problems for alien spouses divorcing their

U.S. citizen spouses:

The CNMI immigration does not require U.S. citizen spouses to get U.S. green cards for their

alien spouses. Therefore, alien spouses in the CNMI have not had any way to gain permanent

residency when their U.S. citizen spouses did not get them green cards. Sometimes they haven't

16

gotten green cards because the U.S. citizen spouse intentionally wanted to use the lack of

permanent status as a means for control over the alien spouse. But sometimes, the married couple

just couldn't afford the cost of the green card processing.

Currently, in the CNMI, under current CNMI law, divorce means you lose your local "immediate

relative" status.

This can be especially difficult for those who have been married for a long time and who have

U.S. citizen children. A U.S. citizen spouse in the U.S. will almost always get a green card for his

or her alien spouse because the alien spouse needs some legal status to reside in the U.S. In the

CNMI, that "legal status" has been the less permanent, no-road-to-citizenship local immediate

relative status for alien spouses. So once the divorce is finalized, an alien spouse here will lose

"local IR" status and be deportable. We are seeing spouses, after many years of marriage and

children, in the process of divorce at this moment who appear to be unprotected by anything in

P.L. 110-229.

Alien spouses and children of citizens from the Freely Associated States

Freely Associated States (FAS) citizens are allowed to live and work in the CNMI and in the United

States. These are citizens from the Federated States of Micronesia, Palau, and the Republic of the

Marshall Islands. The spouses and children are given immediate relative status under CNMI immigration

law. They also face an uncertain future when the federal immigration law goes into effect in June 2009.

In July 2008, I met with about fifty of the FAS citizens and their alien spouses and children who

expressed concern about their precarious status and their determination to keep their families together in

the CNMI. They are seeking permanent status for their alien spouses and children under federal

immigration laws.

Religious Clergy

I met with members of clergy including the Imam of the Saipan mosque who expressed their hope and

concern that status will be provided to allow members of the clergy to remain in the CNMI under the new

federal immigration system.

Long-term guest workers

Long-term guest workers who have worked continuously in the CNMI for 5 years or longer should be

given the opportunity to apply for green cards. The guest workers have not just sacrificed their sweat and

17

tears to build an island nation, but have contributed in other significant ways to the betterment of the

community in which they live. Some of their U.S. citizen children are serving the United States as

members of the Armed Forces in Iraq and other places in the world. Many of the guest workers are

volunteers at their schools, give to charities, and sponsor island clean-ups. They are contributing members

of churches and civic organizations in the CNMI. The CNMI is their home. I am appealing to you in the

name of justice and democracy to grant nonimmigrant status or a direct pathway to citizenship to the

people who built the CNMI. U.S. immigration law recognizes that skilled, legal temporary workers can

become permanent; CNMI law does not. It is the responsibility of the U.S. Congress to correct this

wrong.

Many of the guest workers have lived and worked in the CNMI for 5, 10, 20, 30, or more years. Even

though the guest workers were never promised a pathway to citizenship when they began their

employment in the CNMI, they certainly have earned one. Few of them suspected when they left their

homelands that they would be asked to renew their contracts year, after year, after year. Their valuable

skills were essential to the CNMI economy, and most were invited to stay. When they left their home

countries to work in the CNMI, the guest workers did not expect that their stays would be extended to the

point that they would sacrifice the most productive years of their lives working in a foreign land. These

hard-working people are responsible for taking the CNMI from an island with few businesses and a

limited economy, to an “economic miracle” as described by CNMI-hired lobbyist Jack Abramoff and his

friends in the CNMI and in the U.S. Congress.

There should be no comparison of the guest workers in the CNMI to the illegal aliens in the U.S.

mainland when considering permanent status. The guest workers in the CNMI were hired legally from

their homelands. Their employers recruited them to fill positions that indigenous people would not

perform, or were not skilled to perform. Their CNMI employers encouraged these accomplished guest

workers to continually renew their annual contracts. The CNMI government has controlled the racial

balance for as long as the workers have been invited to work in the CNMI, 30 or more years. The fact that

the indigenous people have become a minority in their small island nation was due to their conscious

actions.

For years guest workers have been taxed under the CNMI labor system that has been sanctioned and

funded by the U.S. Congress. The guest workers have paid CNMI income tax, Social Security tax, and

Medicare deductions. Last year I received a response from the federal government regarding an inquiry

as to how guest workers can collect Social Security benefits. I learned that guest workers that have paid

18

Social Security taxes for years (some for decades) would never see a penny of it unless they are given a

direct pathway to citizenship. I was told that a guest worker would need to become a U.S. citizen, or be

on track to become one by possessing a green card, in order to be a Social Security beneficiary. Why

should guest workers who have worked for years in the CNMI making anywhere from $2.15 to $4.55 an

hour, have Social Security and Medicare deductions taken from their meager checks when they will never

receive the benefits? I am asking that the U.S. Congress amend this legislation to immediately stop

taking further Social Security and Medicare deductions from the paychecks of guest workers until the

U.S. Congress provides a direct pathway to U.S. citizenship for the guest workers.

It would be extremely destabilizing for CNMI businesses to lose all of their long-term alien workers.

Supporting green cards for long-term guest workers is the best option for the business community to

ensure that they have a permanent and stable work force. Granting the long-term alien workers green

cards is the only way, within the limits of what the new law contemplates, to have a chance at keeping the

largest number of long-term workers that the business community wants to keep. To ensure that long-

term alien workers remain in the CNMI, employers would most likely have to increase their wages,

provide better benefits, and treat the workers better, but this is the only scenario under which businesses

will even have a chance to keep these workers over the long-term.

The CNMI-only guest worker program that is set to go into effect in June 2009, can be renewed for as

many years as necessary to ensure the existence of the needed workforce to maintain the economy, or it

can be greatly scaled back, and eventually eliminated by granting permanent status to long-term workers

thus ensuring the required workforce. By granting status, the federal government will also be saving

money in personnel and other costs associated with running a CNMI-only guest worker program.

The U.S. Congress must take a moral stand for justice, democracy, and human rights and include a

provision that provides protective status for the guest workers of the CNMI. I urge the U.S. departments

and agencies involved in writing the policies and regulations for PL 110-229 to include a provision for

permanent status for long-term alien workers.

Discrimination and Retaliation Against Foreign Contract Workers

I reported in July 2007, that there were complaints from non-resident workers that they were victims of

discrimination in federal Head Start, Food Stamp, and Medicaid offices on Saipan, Tinian, and Rota.44

44 U.S. Commonwealth of the Northern Mariana Islands (CNMI) Labor and Human Rights Status Report, by Wendy L. Doromal, July 11, 2007 –July 26, 2007.

19

The complaints were echoed anew this year by guest workers. For example, a non-resident worker

couple with a newborn U.S. citizen child alleged that they were refused food stamps and Medicaid for

their newborn. They were told they could not qualify because the couple did not have current work

permits. However, a dozen alien workers on Rota told me that renewals for work permits on Rota

continue to be issued 9 months to over a year after the renewal applications are submitted.

Another guest worker claimed that they were not allowed to have food stamp benefits because there was

no more money. Workers allege that when they visited the Saipan office they were told they need more

papers even though they had submitted what was originally requested. Some claimed that the department

has “lost” the original paperwork that they already submitted. Non-resident workers allege that local

applicants with the same number of children and jobs receive more in food stamp money than the alien

workers who are jobless because of pending labor cases.

Part of the problem with the Nutrition Assistance Program is that they lack the funding to serve all

qualified applicants. A September 2007, Saipan Tribune article stated:

Due to the limited funding, effective Sept. 4, 2007 and onward, new and re-open applicants will

be placed on waiting lists and shall be approved on a first come-first served basis depending upon

funding availability, NAP said.

The NAP office continues to receive new and re-open applications for assistance. It

currently serves 2,616 household cases, of which 2,435 are from Saipan, 87 from Rota, 92 from

Tinian and 2 from the Northern Islands. The 2,616 household cases comprise 7,945 household

members.45

In October 2007, NAP had to reduce benefits because of a lack of funds. For the fiscal year 2008, they

did not receive a higher grant amount even though they predicted an increase in applications of 40 or

more households a month.46 They operate on an $8 million budget, but claim to require $13 million to

meet the rising cost of food.47 The claims of discrimination at the offices are widespread.48 The federal

government, which is responsible for this program, should conduct an investigation to see if the charges

of discrimination are valid. Was it only the U.S. children of non-resident workers who were placed on the

45 Saipan Tribune, Food stamp funding capped at $9.4M, NAP Press Release, September 28, 2007. 46 Saipan Tribune, NAP preparing for influx of new clients, by Rianne Pangelinan-Brown, May 19, 2008. 47 Saipan Tribune, NAP needs $5M more to meet rising food costs, by Rianne Pangelinan-Brown, May 29, 2008. 48 Saipan Tribune, Alien workers charge NAP with discrimination, by Stefan Sebastian, June 24, 2008.

20

announced waiting lists or refused benefits as many allege? Without a needed federal investigation, we

will never know.

Non-resident workers are also experiencing problems getting Medicaid coverage for their U.S. citizen

children. I spoke to several guest workers from Tinian and Rota who detailed the problems that they are

experiencing at the Medicaid offices on their islands. A guest worker with a salary then of $3.55 an hour,

applied for Medicaid for his U.S. citizen child and clearly qualifies, but cannot get it. He was told that

because the child's mother has a pending labor case, the child cannot receive Medicaid. Other parents of

U.S. citizen children living in Rota reported that the process takes 6 to 12 months or longer from the time

they apply to the time that they receive a Medicaid card. One woman told me that the cards are sent to the

Rota Health Center, but the parents are not even notified that they have come in; they must continually

check the office to see if the card was processed. Another woman stated in July 2008 that she applied for

Medicaid for her U.S. citizen children in March 2007, and her application is still being processed.

Alien workers have also alleged discrimination in the medical referral system. One non-resident worker

from Tinian sought a medical referral for her U.S. citizen daughter who was referred to the Philippines for

needed tests and treatment that were unavailable in the CNMI. An employee at the Tinian Mayor’s Office

who handles the medical referrals, informed her that she could not be helped because the applying mother

was not a voter. The woman protested saying that her daughter was a U.S. citizen with a social security

card and a Medicaid card, but still her daughter was refused a medical referral. The mother then

borrowed money from friends and pawned all of her jewelry to get the money to pay for the airfare to take

her daughter to St. Luke’s Hospital in the Philippines. She does not have the money to pay back the loans

and wonders why local residents get paid referrals for required treatment, but not her daughter.

There are major implications for the overall well-being of the guest workers, their U.S. citizen children,

and the community at large with the current discriminatory practices that affect the nutrition and health

care of the poorest citizens in the CNMI. I support the U.S. government removing the Medicaid cap and

increasing the federal share to the CNMI to be equal with the U.S. share of 77 percent. The residents and

non-resident workers in the CNMI make far less money than the average U.S. worker and deserve access

to quality healthcare when they are ill. There also needs to be a full investigation of all federal offices

concerning allegations of discrimination, and to stop all discriminatory actions immediately.

Discrimination against foreign nationals also exists at local offices. One example of blatant

discrimination comes from the island of Tinian as outlined in this email from a concerned non-resident

21

worker:

March 19, 2008

Dear Ma, am Wendy

I am writing you this email to bring the concern peoples attention through you & your

Human Right Office. It’s a shameful manner & a very weak & sick character that has

displayed from the Tinian Department of Labor & Immigration Resident Director Jack

Borja. Please read the fact story what he (Jack Borja) did with a female security officer

Renuka Shrestha in his office in front of his office staff & other peoples. It was March

10, 2008. Jack Borja called Tinian Dynasty Hotel & Casino Security Manager Frank Perez

& instructed him to bring 2 security officers Ms. Renuka Shrestha & Mr. Satish

Lamichhane to his office to check their physical fitness test (PFT). Renuka was working

night duty & she just got off from work at 9 am & she was just sleeping in the TDHC

barrack & Satish was on duty security officer at that time. At 10:30 am Frank managed

to take them to Jack Borja's office along with a human resource staff Ms. Annele (she is

a pregnant woman for 8 month). I asked Renuka & Satish what Jack Borja did to them in

his office. Renuka said Jack asked her who gave you job in Tinian Dynasty, who you know

there, Are you sure you pass your Physical Fitness Test, Jack was asking her as a harassment

way...Ms. Annele & one of his female secretary was also in the office. Jack was using too

much "F" words while talking to her...Jack asked Renuka to do push up & said I want check

your PFT...Renuka just obeyed his instruction & she did push up for 6 or 7 times. Frank &

Satish were just outside of the Jack's office but they can hear jack's talking using too much

"F" words to the ladies....when Renuka finished her training in front of Jack Borja then Jack

told Frank …i want to see all security personnel's PFT in his office. And Frank made a memo

addressing to all security personnel what Jack advised him. My question is; is this the way that a

private company security personnel need to show PFT to the labor office & in front of non-business

people......Are the private company security personnel animal so Jack borja was treating like

that...if not what’s the concern to show him PFT in his office.....we are not animal...is this the

american island where people treats to the people like animal......But what to do ma.am. We are

alien we can not speak on this issue because our contract is on their hand...please do not tell my

name either...But you can ask for the fact verification to Tinian Dynasty Hotel & Casino Security

Manager 1-670-328-2233 Ext.2873 & also same number to Renuka / Satish/ & for Human

Resource staff Ms. Annele 1-670-328-2233 Ext. 2617. We want your support to investigate this

issue & because we are really feel insecure & disrespect from his behave.....i have been here 10

years but i have never heard any private company staff making PFT in labor directors

22

office.....yes they may call for some question answer matters if they want but with a human

manner & respect but not treating like wild manner & using too much F word while talking

to female employees.

Best regards, (Name removed to protect non-resident worker’s identity)49

Another guest worker from Tinian sent me an equally disturbing email with serious allegations about

improper actions of the Department of Labor Tinian Resident Director Borja. This incident involved

interference from the Mayor of Tinian who worked with Borja to block the employment of a non-resident

worker.50 Other non-resident workers also reported being treated with disrespect, and suffering

humiliation and harassment in government offices on Saipan, Tinian, and Rota.

A Filipina non-resident worker, Malou Berueco, wrote these poignant words about the discrimination and

disrespect the alien workers face daily in the CNMI:

When we work minimum wage, you call us “patay gutom” (desperate).

When you work for this rate, you are a hard worker.

When our US citizen children receive food stamps and Medicaid, they are a burden.

When your children receive these benefits, they deserve it!

When we share our time through community services, we should be doing it.

When locals are the one performing this, it's heroic!

When we march, speak and write, offer probable solutions and causes, we are

disrespectful.

When you are the ones speaking and writing to the extent of hurting and insulting people,

it's freedom of speech!

We alien workers, parents of so many U.S. citizen children, will leave, but our children

who are 18 years old and above will remain and will continue doing what we have

started. To fight for what is right! To live their lives in a legal manner and not forget the

moral values with principles and love for every people of whatever nationality they come from.

In time, there will be a lot of people like Rep. Yumul, with a parent who was a foreigner on this

island, who will stand up and speak for those who cannot! To our children, we are aliens here,

but you are NOT. Please continue loving your friends and neighbors, and stand for what is right.

49 Email attached (with name of non-resident worker removed). This email was given to federal officials for appropriate action. 50 Email attached (with name of non-resident worker removed.) This email was forwarded to federal officials for appropriate action.

23

For we will be the past, and you are the future of the CNMI. You should not forget how some

narrow-minded people see us, so use this as a guide to do what is right, not for revenge. We

instilled in your heart the love for others; make it grow. But never allow yourselves to be

downtrodden!51

The labor and human rights abuses that continue to plague guest workers are a result in part of the fact

that these people lack political and social status. As long as CNMI employers know that the guest

workers can be looked at as replaceable commodities, rather than as respected humans and future citizens,

the abuses will continue, hopefully to a lesser degree under a federal system. There are good and honest

employers in the CNMI, but too many employers exploit the guest workers and threaten to terminate them

for illegal reasons. Guest workers feel that they have to do what these employers want, or they will lose

their jobs. They are threatened that they will be terminated or will not have their contracts renewed if

they don’t work overtime hours without overtime pay; if they ask their employers to pay for their health

care or if a female employee becomes pregnant; if they complain about illegal deductions taken from their

paychecks; if they refuse to pay for their CNMI-mandated labor and immigration renewals, paperwork,

and/or recruitment fees; if they speak out on issues or stand up for their rights, or if they insist that

contract provisions that employers want to illegally omit, are followed. Some have even been threatened

that they will lose their jobs if they do not perform sexual acts. Without solid status or a pathway to

citizenship, they will continue to be disenfranchised, indentured servants in a two-tiered system even

under federal laws.

So many foreign contract workers told me that they are forced to pay their own renewal fees to the

Department of Labor, as well as their own medical fees, that it is easier to find employees who are told

they must pay for their own fees than it is to find employees whose employers follow the law. In fact,

some guest workers reported that their employers already told them when the federal program arrives they

will have to pay for the fees if they expect to remain in the CNMI.

Issues with the CNMI Department of Labor

Problems and issues between the non-resident workers and the CNMI Department of Labor (DOL) have

been prevalent since its inception when it was originally the Department of Labor and Immigration

(DOLI). In December 1993, I wrote my first report on labor and human rights abuses in the CNMI and

submitted it to federal and CNMI officials and members of the US Congress. Some of the exact problems

51 Unheard No More! A Letter from Malou Berueco, January 2008, http://unheardnomore.blogspot.com/2008/01/letter-from-malou-berueco_24.html

24

with this department that I outlined in that report continue today, 15 years later. 52 These include

discrimination, non-enforcement of administrative orders and unpaid judgments, non-prosecution of

employers violating labor laws, and the lack of due process for the non-resident workers with labor cases.

PL 15-108, the new CNMI local labor law, which became effective on January 1, 2008, has been

denounced by lawmakers, attorneys, residents, and by thousands of non-resident workers as was

witnessed in the December 2007 Unity March organized to protest the inequities of the law.53 The march

was the largest demonstration ever held in the history of the CNMI as thousands of non-resident workers,

CNMI residents, attorneys, and advocates joined to denounce the unjust law and show support for

federalization and permanent status for long-term guest workers.

As predicted, problems with the new local law and increasingly oppressive policies of the CNMI DOL

have escalated since it went into effect in January 2008. Citizens, legislators, non-resident workers,

advocates, and attorneys wrote comments on the regulations submitted for PL 15-108. The department

failed to provide the comments and their responses to the CNMI Legislature, as they agreed to do, and

they also failed to post them on their website, as they said they would. Members of the CNMI Legislature

have requested legal opinions on the constitutionality of some provisions and regulations of the law.

In May 2008, I wrote a letter to the CNMI Department of Labor Secretary Gil San Nicolas and Director

Barry Hirshbien that outlined concerns with Deputy Secretary of Labor, Cinta Kaipat, and department

policy and practices related to PL 15-108.54 It was sent via email and also by U.S. certified return receipt

mail. The signed receipts were returned to me, but I never received a reply from anyone in the

department. An August 8, 2008 letter from the CNMI House Standing Committee on Judiciary and

Governmental Operations, Ad-Hoc Subcommittee on Labor and Immigration Issues written by

Representatives Edward Salas and Tina Sablan echoed many of the problems and concerns I had

expressed in my letter to DOL.55 They include complaints about biased personnel, denial of temporary

work permits or forced repatriation even though workers have outstanding labor cases, the failure of DOL

to enforce its own administrative orders and unpaid judgments, serious concerns with the exit provision,

changing the income requirements for non-residents to be allowed to have family members in the CNMI,

52 Human Rights Violations and Labor Abuse in Rota, Commonwealth of the Northern Marianas, by Wendy L. Doromal, December 1993. 53 Saipan Tribune, Thousands Join Historic March, by Ferdie de la Torre, December 9, 2007. 54 Letter from W. Doromal to Secretary of Labor Gil San Nicolas dated May 24, 2008 is attached. 55 Letter from Reps. Salas and Sablan to Secretary of Labor Gil San Nicolas dated August 8, 2008 is attached.

25

issuing hearing and labor notices through publication rather than serving parties, and continuing to hire

new recruits from foreign countries while at the same time repatriating those who were available to work.

There has been a flood of complaints from non-resident workers about personnel at the Department of

Labor and the Division of Immigration. One overwhelming request that the guest workers made to me

was to ask federal officials to get rid of the biased and unprofessional staff at the CNMI Department of

Labor and the Division of Immigration and not just use the existing department and division and their

personnel to run the federal system. Many of the high level employees in the CNMI Department of Labor

and the Division of Immigration have publicly opposed federalization, and have worked to undermine

efforts to support a smooth transition. Several have unjustly attacked the former federal ombudsman,

Jim Benedetto who upheld workers’ constitutional and labor rights, and exposed their corrupt practices

and flawed policies at the DOL. Additionally, non-resident workers claim that DOL personnel have

treated them unprofessionally and with disrespect, as in the incidents with DOL Tinian Resident Director

Jack Borja that were described previously. Numerous alien workers have written letters to Director

Hirshbien and although he has never responded.

In particular, non-resident workers raised issues with Deputy Secretary of Labor, Cinta Kaipat, the

governor’s niece, who has claimed to be the prime author of PL 15-108. Since 2007, in defending the

labor law, she has publicly attacked the integrity of the guest workers and their advocates and has made

inappropriate, hostile, and even racist remarks. Her remarks were publicly denounced not only by me, but

also by CNMI legislators56, and attorneys.57 In December 2007, Cinta Kaipat was quoted as saying,

“Foreign workers who can’t stand the local labor system can leave."58

Some other examples of biased public remarks that Cinta Kaipat made in a published May 22, 2008 letter

to the editor59, and in April 30, 2008 statements60 published in opposition to H.B. 16-86 are:

• “In fact, most workers who bring cases of any kind want only one thing —which is to be able to

remain in the commonwealth for as long as possible. In a very high proportion of cases, wage

claims are abandoned and never pursued, so the employer owes nothing.”

56 Marianas Variety, Kaipat Slams Sablan’s foreign status bill, by Gemma Q. Casas, April 30, 2008. 57 Saipan Tribune, Letter to the Editor: A Slander Against Alien Workers, by Attorney Mark B. Hanson, May 23, 2008. 58 Marianas Variety, Kaipat slams ‘negative’ reporting, defends new labor law, by Gemma Q. Casas, December 12, 2007. 59 Saipan Tribune, Letter to the Editor: Response to Wendy Doromal's comments on emergency regulations, by Cinta Kaipat, May 22, 2008. 60 Marianas Variety, Kaipat slams Sablan’s foreign status bill, by Gemma Q. Casas, April 30, 2008.

26

• “Another problem has been that foreign workers decide not to pursue their judgments, in some

cases perhaps because they are illegal overstayers.”

• “Most employers are law-abiding and pay the monetary awards. But many foreign workers of

relatively long residence are found by hearing officers to be engaged in scams and frauds just to

remain in the Commonwealth. They make false statements in hearings; disregard Department

orders; and generally disrespect Commonwealth law."

• "Many foreign workers who have been in the Commonwealth for five years have records of

continuous employment, but that employment is not real. It exists on paper alone and is, in fact, a

fraud on the Commonwealth government."

Cinta Kaipat made the remarks in her official capacity as the Deputy Secretary of the CNMI Department

of Labor and as its spokesperson. The Secretary of Labor refused to denounce her remarks, and in fact, in

his response to Representatives Salas and Sablan, excused them.61 Clearly, her statements reflect the

attitudes and policies of the department. Non-resident workers are adamant that they do not expect to

have their labor cases judged fairly and will not be given due process through department hearings

because of prejudice, bias, and the fact that they are perceived to be guilty until proven innocent.

Governor Consultant in the CNMI Department of Labor

Another concern is that a consultant of the governor, Deanne Siemer, has been working for years at the

CNMI Department of Labor as an unpaid “volunteer”.62 Among her volunteer duties she serves as a

hearing officer, leads DOL forums, acts as a legal counsel, and writes policy including contributing to

writing the bill that became PL 15-108. Furthermore, workers have alleged that Ms. Siemer has been

serving as an appeal officer in cases that she originally ruled on and denied. It is highly irregular for a

government department to allow a “volunteer” to access confidential documents, adjudicate labor cases,

and make policy decisions. In December 2008 Representative Tina Sablan received an email from

Attorney Siemer that was intended for Deputy Secretary Kaipat. Rep. Sablan denounced Siemer’s

“gamesmanship” at DOL and questioned the legitimacy of her role in the department.63

Deanne Siemer’s husband, Howard Willens, given the title of “special counsel” to the governor, drafted

the lawsuit against the federal government challenging PL 110-229. Governor Fitial retained the 61 Response to Representatives Edward Salas and Tina Sablan from CNMI Department of Labor Secretary Gil San Nicolas dated August 22, 2008 is attached. 62 Unheard No More! Volunteer at Labor, by Wendy L. Doromal, February 16, 2008, http://unheardnomore.blogspot.com/2008/02/volunteer-at-cnmi-department-of-labor_17.html 63 Marianas Variety, Sablan slams ‘gamesmanship’ at Labor, by Gemma Casas, December 9, 2008; email exchange between Deanne Siemer and Representative Tina Sablan is attached.

27

Washington, D.C. law firm of Jenner and Block initially to review the lawsuit and advise him as to

whether or not he should pursue it.64 Recently, in a closed-door, two hour presentation65, Willens and

Siemer appealed to the CNMI legislature for the bankrupt CNMI government to appropriate $50,000 a

month to pay for the law firm to sue the federal government. The governor promised to locate private

funding for the lawsuit if the legislature will not fund it. In August, Governor Fitial placed a statement on

YouTube outlining his reasons for suing the federal government over PL 110-229.66 The CNMI

Legislature has refused to fund the lawsuit,67 and in October 2008, Representative Tina Sablan sent a

letter to Governor Fitial requesting information on the funding sources and contract with the law firm.68

The CNMI Attorney General refused to comply with her request. Despite the lack of legislative and

public support, the lawsuit was filed in U.S. District Court for the District of Columbia on September 12,

2008.69

The Fitial administration and government officials have conducted public forums and have continually

issued statements in the press with incorrect information concerning PL 110-229. The U.S. Senate

Energy and Natural Resources Committee spokesperson has repeatedly corrected misinformation70, but

the Fitial administration, the special legal counsel, and officials from the CNMI Department of Labor and

the Division of Immigration persist with their propaganda, misinterpretation of the law, and scare tactics.

It is important that the CNMI officials and “volunteers” that have been attacking legislative reformers and

advocates, denying justice to alien workers, and promoting the dysfunctional labor and immigration

system in the CNMI are not given positions in the new system.

Exit provision in PL 15-108 being enforced before the prospective effective date. PL 15-108 contains a

provision requiring alien workers who have worked in the CNMI for three years to exit the

commonwealth and return to their homeland for a period of 2 - 6 months. While interviewing workers on

Rota in August 2008, several brought up the issue that the Rota Resort has been working with the

Department of Labor Rota Resident Director, Richard Taisacan, to set a schedule for the workers to exit

the island.71 According to PL 15-108, no worker should be required to exit the commonwealth until 2011,

or three years after the law became effective. The workers I spoke to were in a panic. Many have no

64 Saipan Tribune, LAWSUIT VS FEDERALIZATION Fitial poised to sue US gvt, by Agnes Donato, June 25, 2008. 65 Power point slides of Willens’s presentation are attached. 66Governor Fitial’s Message, YouTube link: http://www.youtube.com/watch?v=N6wEJmL3PFw . 67 Saipan Tribune, IN LAWSUIT VS FEDERALIZATION LAW 'No support from Legislature', by Agnes Donato, September 16, 2008. 68 Representative Tina Sablan’s letter to CNMI Governor Benigno R. Fitial, October 16, 2008. 69 Saipan Tribune, Fitial files lawsuit against feds, by Stefan Sebastian and Agnes Donato, September 15, 2008. 70 Marianas Variety, Fitial’s interpretation of federalization law is wrong, by Gemma Q. Casas, July 10, 2008. 71 Letter from Rota Resort employees to Federal Ombudsman dated August 3, 2008 is attached.

28

place to return to, having sold their land or houses to pay for recruitment fees many years ago. Some have

U.S. citizen children that they cannot afford to bring home with them should they be forced to exit. Fifty-

five alien workers from the Rota Resort gave me a letter to give to the federal ombudsman requesting

assistance. The federal ombudsman also confirmed that the law is prospective and the workers would not

be exiting until 2011.

The CNMI Department of Labor ignores unpaid judgments. For decades the CNMI DOL has failed to

enforce its own judgments in administrative orders or to prosecute employers who failed to follow the

orders that awarded cheated guest workers unpaid judgments. By February 2008 it was announced that

over $6.1 million in unpaid judgments had been documented.72 This figure represents only the amount

owed to the guest workers that were still living in the CNMI. I would estimate that the amount that

employers owe to guest workers is closer to $24 million. Thousands of other cheated guest workers were

repatriated to their homelands with empty pockets, while their violating employers went unpunished and

in many cases were allowed to recruit and hire new alien workers.

In a plan denounced by attorneys and worker advocates, DOL decided to have the cheated workers collect

their own unpaid judgments through small claims court by filing cases and then serving their former

employers to collect their judgments. Employers know that the DOL policies favor employers, and that

administrative orders and judgments are not enforced by any branch or agencies in the CNMI

government. They also know that very few of the cheated workers have any funds to pay for private

attorneys to pursue their cases in a court of law. Therefore, there is no incentive for employers to follow

the laws or pay the correct wages. They have nothing to fear in violating labor laws.

In July 2008, I met several times with a Saipan attorney about filing a class action suit to compel the

CNMI Department of Labor to collect unpaid judgments in administrative orders on behalf of the cheated

workers. Several worker advocates pursued the action and on December 4, 2008, the lawsuit was filed on

behalf of 127 guest workers in CNMI Superior Court. Labor Secretary Gil M. San Nicolas, Labor Deputy

Secretary Cinta Kaipat and Labor Director Barry Hirshbein were named as the defendants as were 20

surety, bonding, or insurance companies responsible for backing the labor bonds if the employers

default.73 In the lawsuit, attorney Robert Myers said that the department’s “refusal to enforce is in direct

violation of the authority for the enforcement of the bond obligations that have been legislatively vested

72 Saipan Tribune, AMOUNT OWED SOME FOREIGN WORKERS $6.1M unpaid wages, damages, by Ferdie de la Torre, February 7, 2008. 73 Marianas Variety, Class suit filed vs. Labor, by Junhan Todeno, December 5, 2008.

29

with the director.”

Alien workers are being repatriated or are being denied Temporary Work Authorizations even though

they have outstanding labor cases, and/or unpaid judgments. Alien workers report that they cannot get

Temporary Work Authorizations, even though they have outstanding labor cases filed with the CNMI

DOL, U.S. Department of Labor, EEOC, NLRB, or cases in the court system. Many have unpaid wages.

As I pointed out previously, some of the EEOC and NLRB cases take months and years to be investigated

and finalized.

When returning to the mainland from the CNMI in August 2008, I met a Bangladeshi gentleman in the

Narita Airport in Tokyo. He had been working in the CNMI for 11 years. The CNMI Department of

Labor ordered him to be repatriated after his employer found a resident worker to replace him. He pulled

some papers from his carry-on bag to show me that he has an unpaid judgment of $6,344. He lamented

that the unpaid judgment represented a huge sum of money that he would never get. With tears in his

eyes he explained that Deanne Siemer had given him false hope by saying that she would try to collect the

funds. Now he had to go back to Bangladesh with no money, and no hope.

Sadly, this gentleman represents just one of thousands of foreign workers who have gone to the CNMI

thinking they were going to America, to work on U.S. soil to fulfill the American dream, only to find

themselves cheated of wages. This non-resident worker told me that he believes that there is a systematic

effort by DOL to repatriate the long-term workers who have valid labor cases and unpaid judgments. He

told me that the previous day a garment worker was also sent home without his monetary award. The

following day a garment worker from Winners Garment was scheduled to leave, and the next week two

more guest workers who were also owed back wages were ordered to leave. All of these cheated workers

will go back to their countries and tell their countrymen how they were cheated on U.S. soil. One has to

ask why has the U.S. government allowed this to happen over and over for decades.

One could justify all of these workers being sent home by saying the economy is bad, and there are no

jobs. However, even though hundreds of workers have Temporary Work Authorizations to search for

jobs, and PL 15-108 states that workers who are presently in the CNMI should be hired before new

recruits are hired from overseas, new workers continue to flow into the CNMI. Those with permits to seek

employment are passed over.

30

The DOL has been imposing new income requirements on the immediate relatives of alien workers who

have been living in the CNMI under former regulations for years.

I have received complaints from guest workers on all three islands that indicate that the CNMI

Department of Labor is systematically attempting to deny the guest worker’s immediate relatives the

privilege of remaining with them in the CNMI. Workers have been told that the income requirements that

they must meet are higher than those stated in PL 15-108, Section 4926. Section 4926(c) of this law

states that “Prior to issuance of an entry permit for a member of the immediate family of a foreign

national worker, the foreign national worker shall provide to the Secretary [of Labor] proof that the

foreign national worker earns an annual wage equal to or greater than one hundred fifty percent (150%) of

the United States Department of Health and Human Services Poverty Guidelines for the State of Hawaii,

that the foreign national worker has, as a condition of entry of each immediate family member, obtained

medical insurance coverage for each immediate family member, and that the foreign national worker has

made education arrangements for each minor child.” The last sentence of Section 4926 states, “This

section shall have only prospective application.” Thus, the income requirements in section 4926(c)

cannot legally be applied to alien workers’ immediate relatives who were in the CNMI prior to January 1,

2008, which is the effective date of PL 15-108.

Under PL 15-108, the alien worker can write a letter of assurance to DOL stating that he or she will

financially provide for immediate relatives. However, the policy is being interpreted differently on all

three islands, and workers on Tinian and Rota (where there are no federal offices and few, if any,

attorneys) are being told they must now meet higher income requirements in order to keep family

members with them. The CNMI Department of Labor has never issued instructions or detailed the base

standards and requirements that a foreign worker must meet and state in a letter of assurance to qualify.

A just guest worker program requires ongoing oversight, adequately trained and staffed offices, and strict

enforcement of all labor and immigration laws. All of these elements must be in place if federalization is

going to benefit everyone who calls the CNMI home. It is not enough to merely change the name of the

guest worker program from the CNMI guest worker program to the federal guest worker program. The

program must be totally revamped to ensure that unjust policies and regulations that have plagued the

current local system are eliminated with the new federal system. The new guest worker program must

reflect democratic and constitutional principles. Otherwise it will be as dysfunctional as the existing

program.

31

The foreign contract workers suffer from denial of due process and the ability to receive justice. A guest

worker owed thousands of dollars from an unscrupulous employer does not have the money to pay for an

attorney. The CNMI Department of Labor places on the foreign contract worker, the responsibility of

collecting unpaid judgments from administrative orders. Usually this is a person without money, without

transportation, and often without the language skills to collect the unpaid wages. It is critical that the

Department of Interior Federal Ombudsman Office remain open through at least 2014. This office is one

of the few places available to guest workers to seek understanding and assistance. At this federal office,

the foreign workers are treated with dignity and respect. Their rights and responsibilities are explained.

This federal office provides translating services, and caseworkers often accompany the foreign workers

with cases to the hearings at the CNMI Department of Labor. The ombudsman office also refers cases to

the EEOC, NLRB, and other federal agencies.

Still, most workers who seek help from the Federal Ombudsman’s Office are told to hire a private

attorney. They generally cannot afford one. There are not many attorneys on Saipan, and no private

attorneys are practicing on Rota. The attorneys that are on Saipan have taken so many pro bono cases

they have told me they cannot afford to survive if they do not get paid. The Micronesian Legal Services

has limited resources also. In the interest of justice it would be beneficial to hire one or two full-time

attorneys for the ombudsman office and an equal number of attorneys for the Micronesian Legal Services

office to represent the foreign contract workers with legitimate labor or criminal cases on a pro bono

basis.

Employers know the CNMI Department of Labor is defective. There is no incentive to follow the laws or

pay the correct wages since employers know there is little or no enforcement of law or administrative

orders.

Human Trafficking, Prostitution, and Sex Trade In 1993 I asked the federal government to eliminate certain categories of foreign contract workers in the

CNMI that were susceptible to abuses, including dancers and club workers. Certainly there is no need to

hire exotic dancers or “cultural dancers” as the category is listed by the CNMI Department of Labor.

There are many local women and men who are Chamorro and Carolinian cultural dancers, yet no locals

are hired for the clubs. Most of the “cultural” dancers come from the Philippines where there is a law

prohibiting Filipinas from taking jobs abroad where they perform in the nude. Many have been coerced

or forced into being strippers or even prostitutes.

32

In 2007, Guma Esperansa, the only shelter in the CNMI for victims of human trafficking, sheltered and

assisted over 50 victims of human trafficking, double the number it served in the previous year.74 This

summer when I visited, the shelter was full of women. The director reported that the shelter is struggling

to meet financial obligations. They estimated that they would be serving a third of the clients that they

have served over the last 12 months. I was told that the women in the shelter represent only a fraction of

the victims of human trafficking in Saipan. The ones who find their way to the shelter are the fortunate

ones who had help from caring community members or law enforcement officials to escape from abusive

situations. It is a struggle for the shelter to meet financial obligations. The director informed me that the

electricity costs have risen from $1,500 a month to a staggering $6,000 a month. When my daughter and

I visited the shelter in July 2008, there was no power for the two hours that we were there. The incredible

work of the shelter should be supported through an increase in federal funding.

While the U.S. and CNMI attorneys have prosecuted cases of human trafficking, there is no obvious

effort to eliminate the problem. The CNMI government does not just condone the sex trade, but

encourages it. They perpetuate the problem by continually issuing business licenses to over 150 “adult

businesses” where the illegal activities take place, and by issuing work permits for masseuses, bar girls,

dancers, and other “adult business” employees who are susceptible to labor and human rights violations.

Many CNMI officials, including those in law enforcement, are regular customers in the establishments, as

employees and “VIP lists” testify. The CNMI Commerce Department and the Zoning Board proposed

that the large vacant La Fiesta Mall be transformed into a “sex park” where all of the strip clubs and

“adult businesses” can be consolidated in one location.75

According to reports and interviews with guest workers, there continue to be underage foreign minors in

clubs on Saipan. There also continues to be false imprisonment of foreign club workers who are

forbidden to leave their barracks after their working hours. Club owners continue to coerce foreign

workers to be prostitutes. In August 2008, I was informed that Club Troy had victims of human

trafficking working in the club. The employees were barred from leaving the barracks. The twist was that

the club’s strippers were not females, but young males from the Philippines.

Prostitution is an open and flourishing business on Saipan. In many cases, women laid off from work due

to the garment factories closing down, have resorted to prostitution to survive. They are visible every

74 Saipan Tribune, Human trafficking in CNMI up almost 50 percent, by Rianne Pangelinan-Brown, May 22, 2008. 75 Saipan Tribune, La Fiesta eyed as adult biz complex, by Stefan Sebastian, July 01, 2008, and Saipan Tribune, Zoning to crack down on adult biz, by Stefan Sebastian, July 29, 2008.

33

evening when the sun sets. The past three times I have been in Saipan I witnessed prostitutes openly

soliciting customers. I filmed women hawking customers outside of clubs in Garapan, in Chalan Kanoa

on Beach Road, and on dark street corners.

Saipan has an international reputation as a destination for sex, and there are numerous references on

Internet sites about prostitution on Saipan. While some tourists travel to Saipan for sex, many find the

poker rooms and prostitution a reason to stay away. On the Trip Advisor site, one tourist posted a

comment in June 2008 saying:

“Overall, we were disappointed in Saipan because of the gambling houses and hookers. Hookers

approached me on the street while I was walking with my wife. We felt unsafe in Saipan, and

thought our things would be stolen at any moment.”76

In another online site, the writer graphically details the degrading treatment of the underage Filipina

strippers in Chicago-2, a Garapan club.77 Saipan has also been prominently featured on the Internet

website, World Sex Guide,78 since 1997 when an article was posted. From the World Sex Guide site:

“As a US commonwealth, Saipan more or less follows US laws (Hawaii is the model state) so

prostitution is illegal. But it's all over the place and as long as clubs pay quarterly taxes, the police

don't hassle them (in fact some of them stop in for freebies, I'm told).”

The site describes the hotel district in downtown Garapan as having “more action than Vegas with clubs

right next to each other and upstairs from one other. You could hop for two weeks straight and not hit

them all.” It describes the four types of “clubs” – Filipina strip clubs, Karaoke clubs that cater to wealthy

Asians, massage parlors that are “pure and simple brothels”, and nightclubs with “VIP rooms” for sex. A

ride through Garapan today reflects the same images. Over the last twenty years, the names of the adult

business establishments and clubs have changed; some close, and new ones open, but the illegal activities

continue.

The streets and clubs are not the only places where prostitution flourishes. There is an organized

prostitution syndicate that is thriving on Saipan. A well-known Garapan hotel is a front for a brothel and

76 Trip Advisor, http://www.tripadvisor.com/ShowTopic-g60716-i2885-k444176-To_Everyone_Subject_Got_questions_about_Saipan-Saipan.html, pehudson, June 1, 2008. 77 Saipan Impressions, Strip Club –Saipan Style, http://www.ampy-pinayexpatinsaipan.blogspot.com, September 29, 2006. 78 World Sex Guide Document: Saipan, http://www.worldsexguide.org/saipan.txt.html

34

receives up to thirty Chinese, Russian, and Filipina prostitutes an evening, according to sources.79 Taxi

drivers, security guards, and the management have a system complete with code words to allow the

women access to the rooms. The sources reported that the customers are mainly Japanese tourists and

men from the military supply ships. There are detailed records kept of the women, referred to as

“joiners.”

I have been told that this syndicate is still flourishing. In fact, a December 4, 2008 Saipan Tribune article

verifies the fact that the prostitution syndicate is prospering. Rep. Joseph Reyes was quoted as

complaining to the Department of Public Safety Commissioner Santiago Tudela about the high number of

illegal taxi cabs and prostitutes in downtown Garapan.80 He even noted the area and the name of the hotel

that works with the syndicate.

Some alien workers told me that the police ignore the operation because a powerful and politically

connected millionaire owns the hotel that hosts the operation. One hotel employee told me that he asked

several law enforcement officials why they don’t arrest the women, and he was told that when they do

make arrests, the violators are just set free, and are back in business the next day.

Use of Foreign Workers and Investors in Criminal Activity

In addition to having hotel personnel participate in activities related to the prostitution syndicate, guest

workers reported that drug activity with Chinese-imported methamphetamine is rampant and syndicates

are flourishing on Saipan, as recent drug arrests testify. In 2005, the Philippine Consul General on Saipan

warned Filipinos “to be wary of syndicates employing unsuspecting Filipinas to serve as drug couriers.”81

Another warning was sent out in August 2008 from the Philippine Embassy in Washington, D.C.82

It has been reported that a casino, poker rooms, and other foreign-owned businesses are being used for

money laundering. In December 2008, Australia’s Consul-General to the Northern Mariana Islands and

Guam and the head of Australia’s transnational crime unit visited the CNMI to meet with officials and

79 All information and documentation obtained on the prostitution syndicate has been turned over to the US Department of Justice. 80 Saipan Tribune, Prostitutes, illegal cabs back in Garapan, by Ferdie de la Torre, December 4, 2008. 81 Saipan Tribune, Syndicates using Filipinos as drug couriers, August 10, 2005. 82 Embassy of the Philippines, Washington, DC, http://www.philippineembassy-usa.org/PRDrugTrafficking26Aug08.htm, August 26, 2008.

35

discuss mutual cooperation efforts to fight transnational crimes including human trafficking, drug

smuggling, and particularly money-laundering.83

Guest workers confided that they have been asked to break the law or lose their jobs. A foreign contract

worker hired as a bookkeeper was made to keep two sets of books for the company where she was

employed. Another guest worker was involved in a racket to process and submit false papers involving

incoming Chinese to the CNMI’s Division of Immigration.84 He quit his job because he did not want to

participate in unlawful activities. Another guest worker reported that the private school where she was

employed was applying for accreditation in order to receive federal funding. The employer was coercing

employees to falsify information on the required documents.85

There are allegations that the Saipan pawnshops routinely accept stolen goods. One source told me that

foreign investors who own the shops stock the stolen items. When they have enough items to fill a

shipping container, they send them overseas to be sold, primarily to Korea. These activities also need to

be investigated.

Political Corruption and Criminal Activity Involving CNMI Officials

In addition to the August 2008 federal indictments against CNMI Lt. Governor Timothy Villagomez and

others involved in the Commonwealth Utilities Corporation scandals, there are numerous direct

connections and references to the CNMI mentioned in indictments related to the Jack Abramoff scandal

that require immediate investigation. From 1995 to 2001, lobbyist Jack Abramoff, employed by Preston

Gates Ellis & Rouvelas Meeds and then Greenberg Traurig, represented the CNMI government in its

efforts to block the application of federal minimum wage and immigration laws to the CNMI. The CNMI

government paid an estimated $7.7 million to the Abramoff lobbying firms over this period.86

In 1999 after Abramoff-connected lobbyists Ed Buckham and Mike Scanlon made a trip to the CNMI,

two CNMI legislators, Rota Representative Alejo Mendiola and Tinian Representative Norman Palacios,

switched their votes to give then Representative Benigno R. Fitial the position of Speaker in the 12th

83 Marianas Variety, Australian envoy seeks Pacific islands’ cooperation vs. transnational crimes, by Gemma Q. Casas, December 9, 2008. 84 All information and documentation on the falsification of immigration documents was turned over to the FBI and U.S. Department of Justice. 85 All information and documentation was turned over to the FBI and U.S. Department of Justice. 86 Survey of CNMI-Contracted Lobbyists Activities January 1994 through September 2001, by the Office of the Public Auditor, Commonwealth of the Northern Mariana Islands, November 9, 2001.

36

CNMI Legislature.87 Their support was reportedly in exchange for promises of pro-CNMI legislation in

the U.S. Congress, and appropriations of federal funds for infrastructure projects for their respective

islands. Fitial, for his part as Speaker, lobbied successfully to get the CNMI Legislature and the governor

to approve a new pricey contract to re-hire Abramoff as the lobbyist for the CNMI. A January 2006

Saipan Tribune article states:

Governor-elect Benigno R. Fitial has also been linked to the lobbying scandal. He is believed to

have received assistance from Abramoff in his bid to become speaker of the 12th CNMI House of

Representatives in 2000. He has issued a public statement calling Abramoff and former U.S.

minority leader Tom DeLay, who is also involved in Abramoff's corruption case, his “friends.” 88

Numerous other local, national, and international newspaper articles and editorials outline the relationship

that then Speaker of the CNMI House, and now Governor Benigno Fitial maintained with lobbyist Jack

Abramoff, members of the U.S. Congress, and congressional staff members in an effort to promote CNMI

interests.89 In March 2006, prior to Jack Abramoff’s sentencing, Governor Fitial wrote a letter to the judge

asking for leniency for the lobbyist whom Fitial described as his “close personal friend.”90

The Abramoff and CNMI collaborations are also mentioned in the indictments, factual statements, or

pleas of Jack Abramoff and several of the other lobbyists and officials who have been indicted. They are

detailed in billing records of 1996, 1997, 2000 and 2001.91 Additionally, former Secretary of the CNMI

Department of Labor and Immigration, Mark Zachares, was indicted in April 2007. Mentioned in the

indictment was the fact that Abramoff attempted to secure a position for Zachares at the U.S. Department

of Interior as the Deputy Assistant Secretary for Insular Affairs to advance the agenda of Abramoff’s

client, the CNMI Government. In June 2002, Abramoff secured Zachares a position as a staffer on the

House Transportation and Infrastructure Committee with Rep. Don Young (R-AK) who also worked to

block federal takeover of immigration and the minimum wage in the CNMI.92

In September 2008 Kevin Ring, former staffer for Rep. John Doolittle (R-CA), former aide for former

Senator John Ashcroft (R-MO), and fellow Abramoff lobbyist, was indicted on charges that included

87 Saipan Tribune, Mendiola, Palacios switch to support Fitial, by Tribune staff, December 16, 1999. 88 Saipan Tribune, 'Govt cooperated with feds on Abramoff probe', by Agnes E. Donato, January 6, 2006. 89 Saipan Tribune, US House leaders’ support in bag, by Tribune staff, April 9, 2001. 90 Letter from Governor Benigno R. Fitial to Judge Paul C. Huck dated March 20, 2006 is attached. 91 Files containing indictments, factual statements and pleas of indicted Abramoff-related lobbyists and government officials, and the CNMI billing records from the lobbying firms are attached. 92 Anchorage Daily News, Young’s aide link to Abramoff sheds new light on Marianas bill, by Richard Mauer, April 29, 2007.

37

conspiracy, payment of a gratuity, wire fraud, and obstruction of justice.93 Multiple references to the

CNMI were included in the indictment including the following: Page 15, paragraph 62 states that Ring

worked with Rep. Doolittle to investigate the immigration status of a woman (Carmencita Chie Abad), a

former CNMI garment worker whom I interviewed in 1998. She had been granted asylum and was in the

U.S. advocating minimum wage and other CNMI reforms, to the displeasure of the CNMI government.94

Page 15, paragraph 65 discusses a conversation Rep. Doolittle had with the House Transportation and

Infrastructure Committee Chairman about CNMI projects. Pages 15-16, paragraph 67 states that Ring

forwarded an email to Doolittle's legislative director confirming that he had written to the Army Corps of

Engineers in support of several appropriations requests for the CNMI. Page 20, paragraph 98 states that

Ring and another member of the lobbying team met with Rep. Doolittle’s legislative director and another

congressional staffer to discuss a CNMI appropriations request and Rep. Doolittle’s request to allow it

into an energy and water bill.

The CNMI-Abramoff billing records and emails between CNMI government officials and prominent

CNMI business owners and the lobbyists also detail questionable trips to the CNMI made by members of

the U.S. Congress, congressional staff, think tank members, and members of the press. Records show

that after the trips, the junket-takers wrote pro-CNMI articles and editorials for major publications,

circulated favorable CNMI “Dear Colleague” letters that were written by the lobbyists for members of the

U.S. Congress, made pro-CNMI speeches on the floor of the House, issued reports that supported the

CNMI agenda, and/or worked with the lobbyists to write the witness questions and manipulate the

direction of congressional hearings. The lobbyists arranged for CNMI officials and business owners to

take trips to Washington, DC and other mainland locales to attend formal and recreational events. They

also created opportunities for CNMI officials to meet with members of the U.S. Congress, federal

officials, and President George W. Bush. A memo from Jack Abramoff sent to Benigno Fitial, garment

magnate Willie Tan, and Eloy Inos (who all worked for the garment industry at that time) outlined the

lobbying firm’s strategy to push the CNMI Government’s agenda in Washington, DC. 95

Members of the U.S. House of Representatives including Reps. John Doolittle (R-CA), Chris Cannon (R-

UT), former Rep. Bob Schaffer (R-CO), and Rep. Dana Rohrabacher (R-CA), wrote press releases and

were featured in advertisements in the CNMI newspapers declaring their support for Covenant Party

candidate Benigno Fitial during his 2001 campaign for governor.96 At the bottom of these advertisements

93 Unheard No More!, Kevin Ring Indicted, by Wendy L. Doromal, September 8, 2008. 94 Saipan Tribune, CNMI braces for smear campaign, by Tribune staff, November 15, 2001. 95 Memo from Jack Abramoff to Ben Fitial, Willie, Tan and Eloy Inos, dated January 31, 1998. 96 A file containing related newspaper articles, campaign advertisements, and press releases is attached.

38

is the attribution “Paid for by the Committee to Elect Fitial-Inos.”. In exchange, prominent CNMI

officials including Fitial and individuals connected to the garment industry made campaign contributions

to these members of the U.S. Congress. Each of these representatives or their staff members met with

Abramoff or members of the lobbying team regularly to form strategies to push the CNMI political

agenda, and all of them participated in junkets to the CNMI.

In 2005 Rep. George Miler (D-CA) requested the House Resources Committee to investigate the

allegations involving Abramoff's "lobbying services, interference in territorial elections, interference in

contract procurement and questionable payment of overseas trips for members of the U.S. Congress and

staff.” 97 A full investigation should be conducted and violators should be prosecuted to the fullest extent

of the law.

Chinese and Russian Visa Waivers

I do not support visa waivers for Chinese and Russian tourists for Guam and the CNMI. For decades the

CNMI has served as a “back door” to the United States for drug and human trafficking. A resident of

Saipan commented to me that the CNMI is no longer considered a “back door”, but it is more of an “open

front door.” In August 2008, DEA agent Dan Holcolm reported that there has been a steady increase in

the trafficking of methamphetamine hydrochloride (ice) over the last ten years in Micronesia, especially

in the CNMI and Guam.98 Much of the organized crime on Saipan, including the overwhelming problem

with methamphetamine, can be traced to China. Likewise, the trafficking of young women and minor

children often has origins in China. Most of the prostitutes involved in the syndicate at the Saipan hotel

are Russian and Chinese, as the logbook and witnesses testify.

In June 2008, the CNMI Drug Task Force reported that Chinese drug traffickers controlled most of the

illegal drug operations in Saipan and Tinian, and China was the source for the majority of the illegal

drugs in the CNMI.99 Chinese drug traffickers have been arrested on all three of the main CNMI islands.

Former Police Commissioner Claudio K. Norita stated,” Most of the methamphetamine coming here is

being shipped through cargo containers or hand-carried aboard planes.”100

97 The Saipan Tribune, CNMI govt open to Miller’s call for probe, by Liberty Dones, April 17, 2005; Rep. George Miller’s letter to Rep. Richard Pombo, Chairman of the House Resources Committee, dated May 11, 2005 is attached. 98 Saipan Tribune, Ice remains leading drug threat in Micronesia, Ferdie de la Torre, August 7, 2008. 99 Saipan Tribune, NMI 'ice' trade has new supplier, by Ferdie de la Torre, June 8, 2008. 100 Ibid.

39

In September 2008, Saipan police arrested a Chinese garment factory worker for 176.6 grams of

methamphetamine, the second largest amount of the drug ever confiscated on Saipan. The suspect wired

two money transfers totaling $10,000 to China just prior to his arrest.101 In November 2008, three more

Chinese nationals were arrested for possessing and selling methamphetamine on Saipan.

A report released in 2006 entitled Report on Security in Guam and the CNMI prepared by the Office of

the U.S. Attorney for Guam and the CNMI states:

"On Guam and in the CNMI, the most common illegal activities are public corruption, the

importation and sale of crystal methamphetamine or "Ice," and immigration crimes. These

criminal activities take on entirely unique perspectives when viewed against a background in

which the Federal government has no jurisdiction for immigration and customs control and the

local agencies that do are susceptible to corruption and influence from within their territorial

governments. Considering the breadth and scope of criminal activity and the vast array of

obstacles and impediments which they face daily, the Federal law enforcement agencies are doing

an extremely creditable job with limited assets. However, most of the Federal officials

interviewed on Guam and in the CNMI, expressed genuine concern that their efforts will not be

able to keep pace with the growing degree and complexity of criminal activity; given the

restrictive and disadvantaged environment in which each must operate."

The report details smuggling schemes allowed through immigration loopholes and mismanagement,

illegal immigration in the CNMI, and criminal activity:

"Individuals belonging to the Chinese triad gangs, Japanese Yakuza, Russian Mafia, and Korean

Mafia organizations each participate to some degree in the criminal activity of the islands.

Gambling, prostitution, drugs, money laundering and the exploitation of the large segments of the

alien population are fully orchestrated by these organizations. Because of the Covenant

provisions allowing the territorial government to regulate immigration and customs, Federal

authorities cannot prevent entry and must therefore adopt a reactive approach. This greatly taxes

meager Federal assets and creates an environment in which organized crime can flourish."

To protect our borders and limit the entrance of criminals and terrorists to the United States, it makes

sense to have one consistent immigration law for all of the United States and its territories, with no visa

waivers for Chinese and Russian tourists.

101 Saipan Tribune, 'Suspected dealer had just wired $10,000', by Ferdie de la Torre, September 21, 2008.

40

Recommendations Based on Findings

In formulating a federal guest worker program, it is imperative that the abusive policies of the CNMI

Department of Labor be ended and replaced with democratic, constitutional policies and regulations that

afford the alien workers justice and due process. We have witnessed three decades of abuse where

nonresident workers invited to work on U.S. soil have been routinely cheated, violated, and denied justice

while their employers have never been held accountable. We cannot allow the corrupt, dysfunctional,

unjust CNMI system to continue under the federal name. I offer the following recommendations:

CNMI-Only Guest Worker Program and U.S. Department of Labor

• Ensure that alien workers are provided adequate protection under the Fair Labor Standards Act

(FLSA), the Equal Employment Opportunity Commission (EEOC) laws, the National Labor

Relations Board laws, and regulations that fall under the Occupational Safety and Health

Administration (OSHA) by establishing adequately staffed CNMI-based field offices with

professional and trained personnel to oversee and regulate worksites and investigate complaints.

• Eliminate categories of guest workers that are susceptible to human rights and criminal abuses

including forced prostitution, false imprisonment, and human trafficking. These categories

include strippers and exotic dancers, escorts, masseuses, and others employed in “adult

businesses.”

• Prosecute to the fullest extent of the law all employers who abuse workers or violate labor or

other U.S. laws.

• Provide avenues for victims of labor violations to receive justice. Collect back wages or other

monetary judgments from violating employers on behalf of cheated alien workers.

• Hire only qualified and experienced applicants for federal positions to end the nepotism and

political corruption that has caused the local system to be dysfunctional and unjust.

• Initially set any labor fees at a low rate to allow businesses and employers to adjust to the new

system.

• Set up screening to ensure that prospective or current employers of alien workers are financially

stable and can afford to hire alien worker/s, and are not sexual offenders or felons. Prohibit from

hiring alien workers, all current and former employers who have defaulted on administrative

orders and have failed to pay alien workers unpaid judgments or monetary damages until the

unpaid judgments are paid.

41

• Interview long-time guest worker advocates, attorneys who routinely represent alien workers in

labor cases, and long-term guest workers, as well as representatives from the CNMI government

and business community to fully understand CNMI-specific labor and economic issues prior to

establishing regulations.

• Begin immediately screening and processing CNMI non-resident workers to ensure a smooth

transition.

Immigration Concerns

• Grant an unobstructed pathway to U.S. citizenship on June 1, 2009 to guest workers who had

been working lawfully in the CNMI for at least five years as of June 1, 2009.

• Grant a pathway to citizenship for the immediate relatives of the guest workers who acquire U.S.

citizenship under this legislation.

• Grant immediate U.S. citizenship on June 1, 2009 to parents of the U.S. citizen children in the

CNMI.

• Address other categories of non-residents including CNMI permanent residents, alien spouses and

children of U.S. citizens, alien spouses and children of FAS citizens, and alien religious leaders

and clergy, to ensure that these people are provided permanent status so they are allowed to

continue to work and live in the CNMI and in some cases maintain family relationships.

• Establish and adequately staff U.S. Department of Homeland Security and U.S. Bureau of

Citizenship and Immigration Services with professional and qualified personnel. Begin training

immigration and customs personnel to ensure a smooth transition.

• Prohibit visa waivers for Chinese and Russian tourists in the interest of national security.

• Thoroughly screen current and future foreign business investors, perpetual foreign investors, and

retiree investor permit holders in the CNMI before issuing them federal visas, in the interest of

national security.

U.S. Department of Justice Concerns

• Increase the number of U.S. attorneys, F.B.I. agents, D.E.A. agents, and support staff.

• Fully investigate and prosecute participants in the prostitution, drug, and money laundering

cartels.

• Investigate and prosecute CNMI government officials involved in illegal deals with former

lobbyist Jack Abramoff and other lobbyists, consultants, and contractors hired by the CNMI

government.

42

• Investigate the CNMI Department of Labor and Attorney General’s Office for their failure to

enforce labor law and secure unpaid judgments owed totaling over $6.1 million.

U.S. Commission on Civil Rights Concerns

• Investigate discrimination against U.S. citizen children of non-resident worker parents in federal

programs including Head Start, the Nutrition Assistance Program, and Medicaid offices.

• Investigate discrimination in the CNMI Department of Labor and the Division of Immigration,

and discrimination against foreign contract workers and U.S. citizen children of foreign contract

workers in the CNMI medical referral offices.