Leaders In US-Affiliated Pacific React To Iran Strikes
Leaders in the US-affliliated Pacific Islands have reacted to the US strikes on Iran.
US president Donald Trump said Iran must now make peace or "we will go after" other targets in Iran, after US strikes on Iranian nuclear sites.
Iran's foreign ministry said the US has begun a "dangerous war against Iran", according to a statement shared by Iran's semi-official Tasnim news agency.
The governor of the Northern Marianas, Arnold Palacios, said he is "monitoring the situation in our region with our US military partners".
"The Northern Marianas remains alert and we remain positively hopeful and confident that peace and diplomacy reign for the benefit of our fellow brethren here at home and around the world."
Delegate Kimberlyn King-Hinds said the Marianas has long understood "the delicate balance between strategic presence and peace".
"As tensions rise in the Middle East, I'm hopeful that diplomacy remains the guiding force," she said.
"My prayers are with the service members and their families throughout the region, most especially those from our islands who quietly serve in defense of global stability."
Guam's governor, Lou Leon Guerrero, said right now, there are no credible threats to their island, and "we will do everything in our power to keep Guam safe".
"Our people have always been resilient in the face of uncertainty, and today, as we watch our nation take action overseas, that strength matters more than ever," she said.
"Guam is proud to support the men and women who serve our country - and we feel the weight of that commitment every day as home to vital military installations."
She said she and her team have been in close touch with local military leaders.
"I encourage everyone to stay calm and informed by official sources, to look out for one another, and to hold in our thoughts the troops, their loved ones, and all innocent people caught in this conflict."
Lieutenant governor Josh Tenorio said: "What is unfolding in the Middle East is serious, and it reminds us that our prayers and our preparedness must go hand in hand.
"While we stand by our troops and support our national security, we also remain committed to the values of peace and resilience. Our teams are working closely with our Homeland Security advisor, Joint Region Marianas, Joint Task Force-Micronesia, and the Guam National Guard to stay ahead of any changes."
Meanwhile, Mark Anufat Terlaje-Pangelinan, one of the protestors during the recent 32nd Pacific Islands Environmental Training Symposium on Saipan, said he wasn't at all surprised by the US' attack on Iran.
"This is exactly what we concerned citizens have been warning against for the longest time," he said.
Terlaje-Pangelinan said the potential of CNMI troops and the Marianas itself being dragged into a wider and more protracted conflict was disheartening.
"Perpetuating the concept of the CNMI being a tip of the spear more than being a bridge for peace between the Pacific landscapes does more harm than good. The CNMI will never be fully prepped for war. With our only safe havens being the limited number of caves we have on island, we are at more risk to be under attack than any other part of America."
Iran has requested an emergency meeting of the United Nations Security Council, it said in a letter issued Sunday, urging the council to condemn the US strikes on its nuclear facilities.
The UN chief, Antonio Guterres, has described the US military action in Iran as a direct threat to world peace and security.
It's been announced that the UN Security Council will hold an emergency session.
Officials in Iran are downplaying the impact of US strikes on its nuclear facilities, particularly the Fordow site buried deep in the mountains, in sharp contrast with Trump's claims that the attack "obliterated" them.
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24 minutes ago
- NZ Herald
According to UN data, hundreds of Palestinians in Gaza have been shot dead while seeking food
In recent weeks, it has emerged as a final sticking point in negotiations over a ceasefire, placing the Israeli- and United States-backed GHF squarely in the crosshairs of the latest talks. Hamas is demanding a return to the United Nations-co-ordinated system of aid delivery that operated in Gaza for decades. Israel charges that Hamas has corrupted that system. It wants to maintain strict controls on assistance to Gazans, using the newly created GHF as the primary mechanism for food distribution. Critics, including the UN and most of the international humanitarian aid community, say the GHF is designed to further Israeli war aims by selectively and inadequately providing assistance, and by forcing Gazans to put their lives in danger for a box of provisions. In a statement released yesterday, 21 European countries and others including New Zealand, Canada, and Australia issued a joint statement saying that 'the suffering of civilians in Gaza has reached new depths'. It condemned 'the drip feeding of aid and the inhumane killing of civilians, including children, seeking to meet their most basic needs of water and food'. 'The Israeli Government's aid delivery model,' it said, 'is dangerous, fuels instability and deprives Gazans of human dignity.' Like much of what happens inside Gaza, where Israel has banned international reporters except on brief tours led by the Israel Defence Forces, the origins and operations of the GHF remain obscure. Even more opaque is its funding. The foundation says it received about US$100 million in start-up money from a government it has declined to identify. In late June, the Trump Administration said it would supply US$30m to GHF operations. A major donation initially expected from the United Arab Emirates, according to internal planning documents seen by the Washington Post, has not materialised. The Government of Israeli Prime Minister Benjamin Netanyahu, which has been deeply involved in the aid programme, has publicly denied paying for it. But behind the foundation, which is a registered non-profit, is a web of interconnected US and Israeli individuals, and private US companies - including some that hope to eventually make money on the relief effort, according to public and private documents reviewed by the Washington Post and interviews with more than a dozen US and Israeli government officials, business representatives and others involved, who spoke on the condition of anonymity. Among those positioned to profit from GHF-linked contracts are a Chicago-based private equity firm, McNally Capital, whose subsidiary Orbis Operations helped set up the foundation; and Safe Reach Solutions, the primary contractor overseeing GHF operations inside Gaza, which was created late last year for that purpose. SRS is owned by a Wyoming-based trust whose beneficiary is McNally Capital. Boston Consulting Group was also engaged in the effort to stand up the GHF, on what it has said was a pro bono basis. In March, it signed a two-month contract for more than US$1m with McNally to continue assisting SRS, with later extensions in May, an arrangement first reported by the Financial Times. BCG later withdrew from the project amid controversy, and a BCG spokeswoman, Nidhi Sinha, said no payment was accepted. The GHF has continued to deliver food to hungry Gazans: since late May, according to the foundation's count, more than 80 million meals in boxes that are calibrated to feed 5.5 people for 3.5 days. Dwindling resources have limited the number of trucks available to bring food into the enclave to about 70 to 80 per day, compared with early plans for more than 300, according to people familiar with GHF operations. Construction of additional distribution sites has also been indefinitely put off because of a lack of financing, ongoing Israeli military operations, and the need to remove unexploded ordnance throughout Gaza. Money problems, and the unknown outcome of ceasefire negotiations, have also put on hold GHF plans for a more holistic - and controversial - proposal to relocate Gazans, summarised in a 19-page slide deck distributed at the US Embassy in Tel Aviv in January, several people said. In addition to the food distribution, the slides included plans for GHF construction of large-scale residential compounds inside and potentially outside Gaza where 'the population' could reside while the enclave was 'demilitarised and rebuilt'. The slide deck suggested that approach would allow the GHF to gain trust with Gazans - a currency that could be leveraged to 'facilitate President Trump's vision' for the battle-scarred enclave. Bodies of Palestinians killed in an Israeli strike on civilians waiting for aid in the western part of Rafah on July 19. Photo / Getty Images Aid 'in a non-UN way' The GHF concept was born as part of a larger effort by a group of Israeli military officials, Israeli businesspeople and foreign partners to support Israel's war effort and plan for Gaza's future. They began meeting shortly after the conflict began with Hamas' October 7, 2023, surprise attack in southern Israel, which killed about 1200 people and saw at least 250 hostages taken back to Gaza. As Israel responded to the attack, pounding Gaza with airstrikes and ground troops, it cut off the daily assistance that the 365sqkm enclave had depended on for decades. Netanyahu's Government - long distrustful of the UN, which co-ordinated deliveries of food, fuel and medical supplies - justified the blockade by claiming that Hamas controlled and profited from the aid distribution. Under pressure from the Biden Administration and humanitarian organisations that said depriving non-combatants of food was a potential war crime, Israel eventually allowed limited relief to resume. But the Israelis kept a tight hold on the spigot of assistance, generating friction between Netanyahu and the US Government, Israel's main source of weaponry and diplomatic backing. 'There was a need to get humanitarian aid into Gaza,' an Israeli familiar with the group's efforts said, but it needed to be done 'in a non-UN way'. In January 2024, the fledgling Gaza aid working group sought advice from Michael Vickers, a former Green Beret, CIA veteran and undersecretary of defence for intelligence during the Obama Administration. Vickers was on the board of Orbis Operations, a consulting company based in McLean, Virginia, that was founded by former national security, military, and intelligence specialists and which McNally purchased in 2021. Vickers told the planners, 'I'm not the guy, but I know the guy who can talk to you', according to a person familiar with the approach. The man they wanted, Vickers said, was then-Orbis vice-president Philip Reilly, a former senior CIA operations officer with extensive experience in private security operations. Reilly quickly gained the trust of the IDF and the Gaza planning group, and spent much of 2024 immersing himself in the details of the Gaza conflict. Neither Vickers nor Reilly responded to queries about their involvement in the Gaza initiative. The Biden Administration was well aware that the Israeli Government and private-sector Israelis and Americans were working with the Government on a plan to impose a new aid delivery system. While some in the Administration were supportive, most were sceptical. But they did not directly interfere in the project. 'They were all talking - they being the Israeli Government, the prime minister's office, the IDF - sort of throwing spaghetti against the wall to find some magic formula to take the responsibility off their shoulders' to care for Gaza's civilians, a former Biden official involved in Israel policy said. Ambitions and incorporations By the northern autumn, the outline of a plan was laid out in a lengthy feasibility study compiled by Silat Technologies, an Orbis subsidiary, envisioning the creation of a non-profit entity, the Gaza Humanitarian Foundation, 'to safely deliver humanitarian aid to Gaza'. Planning documents distributed over the next several months said that the foundation's leadership should include respected humanitarian figures such as David Beasley, former head of the World Food Programme, and Tony Blair, the former British Prime Minister who now runs an institute to advise change-making political leaders. Although the UN and major non-governmental aid organisations already operating in Gaza were described as an integral part, their proposed role was unclear. An elaborate social media presence and public relations programme would include outreach to select journalists to promote a positive image of the GHF. The foundation would hire a 'prime' contractor to organise and supervise construction of the sites and the aid operation inside Gaza. That firm would then subcontract a private security company - ideally US-based - to be the boots and guns on the ground, guarding the aid as it was transported to distribution sites and protecting the sites themselves. The private companies lined up to service the planned foundation also included BCG, where both Reilly and Vickers were senior advisers. BCG, which later said its initial services were offered pro bono, projected US$2b in initial operating costs for the GHF. On November 21, a new limited liability company, Safe Reach Solutions, was registered in Jackson, Wyoming, and placed in a trust administered by a local company, Two Ocean Trust. While no information in the registration documents indicated what the new company did, who ran it or whom it employed, the beneficiary of the trust and any money it made, according to three people familiar with the arrangement, was McNally Capital, the private equity firm that owns Orbis. SRS, with Reilly as its chief executive, would later become the primary GHF contractor. Spokespeople for Two Ocean Trust and SRS declined to comment. In a statement to the Washington Post, McNally Capital said it 'did not invest in SRS or actively manage the company', but said it has an 'economic interest' in the firm. 'Given our long-established relationship with Phil Reilly … our strong belief in the importance of humanitarian aid, and the US Government's appeal for innovative solutions,' the statement said, McNally was 'pleased to have supported the establishment of SRS as an important step toward meeting the full scope of humanitarian need in Gaza'. Founded in 2008 by Ward McNally, of the Rand McNally publishing family, the firm specialises in the acquisition of aerospace, defence, and technology companies. 'Obviously, McNally is a business. They're in the business of making money,' a person familiar with the financial aspects of the project said. But 'I think it's very ambiguous whether this ends up being profitable'. A checkpoint test run As the new year approached, progress toward the food aid programme planning was interrupted by the prospect of a Gaza ceasefire and partial hostage release. Israel had agreed to move its troops out of portions of Gaza at least temporarily - allowing citizens to return to what remained of their homes in the largely destroyed northern portion of the enclave. But Israeli officials insisted on a vehicle checkpoint - run by non-IDF security - on the Netzarim Corridor, a dividing line between northern and southern Gaza, to ensure weapons were not carried back to areas the IDF said it had earlier cleared of Hamas militants. With nine days' notice, US and Arab mediators turned to the newly created SRS to organise the checkpoint. Reilly subcontracted UG Solutions, a small security firm based in North Carolina, to staff the ground operation. Headed by former Green Beret Jameson Govoni, UG had previously worked in Ukraine and Haiti, among other hot spots, and could move quickly because it had few of the classified contracts with the US or other governments that proved to be complications for bigger security companies. The ceasefire mediators - the US and Qatar - administered payments to SRS, the prime contractor, according to people familiar with the operation. The ceasefire began on January 19, the day before Donald Trump's second-term inauguration. Although the truce lasted only until mid-March, when Israel launched another ground invasion of northern Gaza, the checkpoint was deemed a success, with no major incidents reported. The Netzarim operation came to be considered a test run for the food distribution operation, and SRS and UG were well positioned to take it over for GHF. On February 2, the foundation was registered as a humanitarian non-profit in Switzerland and Delaware. The Netanyahu Government had every reason to believe that Trump would support the initiative. He vowed to quickly end the war and proposed that the US 'take over' and 'own' Gaza, developing it as a high-end Mediterranean resort. Food distribution by the GHF, planning documents indicated, was just the first step in a larger redevelopment plan. Palestinians line up to receive a hot meal at a distribution point in the Al-Rimal neighbourhood in Gaza City on May 21. Photo / AFP A rocky launch When the ceasefire collapsed on March 18 and the IDF resumed ground operations and airstrikes, Israel again stopped all humanitarian aid from entering Gaza. As the days and weeks ticked on, thousands of tonnes of food and goods piled up in warehouses outside its borders; WFP and other humanitarian actors began to tally reports of starvation inside. By early May, Israel was under mounting international pressure to end its aid blockade, and Trump was looking for progress on his promise to end the war as he prepared for a trip to the Gulf. At a May 9 news conference in Tel Aviv, US Ambassador to Israel Mike Huckabee claimed the GHF as a Trump 'initiative'. US representatives, including Aryeh Lightstone, an official who now works with Trump's special envoy Steve Witkoff and formerly served as an aide to David Friedman when he was US ambassador to Israel, courted UN and humanitarian partners to sign on to the plan. But opposition to the plan had grown. The UN and most aid partners refused, publicly denouncing the proposal as immoral and designed to further Israel's war plans against Hamas by 'militarising' assistance to more than a million civilians corralled into ever-shrinking 'safe zones' demarcated by the IDF in southern Gaza. Neither Beasley nor Blair agreed to sign on. On May 22, newly named GHF executive director Jake Wood, a US Marine veteran and co-founding board chair of Team Rubicon, a humanitarian organisation that operated in disaster zones, released a letter he had sent to COGAT, the Israeli Government co-ordinator for Gaza and the occupied West Bank. Its purpose, he wrote, was to confirm 'our understandings of agreements' - including an understanding that aid agencies would also be permitted to distribute food and medical assistance under 'existing' humanitarian mechanisms, outside the GHF programme. 'GHF acknowledges that we do not possess the technical capacity or field infrastructure to manage such distributions independently,' he wrote, suggesting that the new aid mechanism should complement, but not replace, Gaza's existing aid sector. The night before the scheduled May 26 launch, Wood unsuccessfully sought to persuade the IDF to delay the start date by at least a week amid unanswered questions about funding, the participation of other agencies and the nearby positioning of Israeli troops. Wood resigned, and the next day, UG contractors accompanied the first convoys of GHF food into Gaza. Some of the plans, he said in a statement, were not consistent with 'humanitarian principles of humanity, neutrality, impartiality and independence'. David Burke, a fellow Marine veteran and former Team Rubicon colleague who had been named GHF chief operating officer, also resigned. Burke and Wood did not respond to inquiries from the Washington Post. The GHF promoted John Acree, a former official with the US Agency for International Development originally named head of the GHF operations inside Gaza, to interim executive director of the foundation. The opening of the sites brought new problems, with tens of thousands of despairing Gazans surging towards promised food. In the first week of GHF's operations, witnesses said that Israeli troops shot in the direction of Palestinians queuing outside the fenced distribution sites at least three times. UG contractors voiced concerns about the rules of engagement of nearby IDF troops and the safety of the Palestinians, according to several people familiar with the site operations. Paid Palestinian volunteers working at the GHF sites were receiving death threats from Hamas for participating in the Israeli-backed plan. Volunteers were afraid to travel back to their families at night, but the financial planners had not budgeted to provide them with housing, running water or other supplies to stay on-site, one person said. 'There were number crunchers at every stage, asking why do we have to do this stuff,' said another person familiar with the conversations between BCG financial consultants and SRS planners. Contractors purchased some provisions for the workers out of their own pockets, the person said. The limited number of trucks that passed through the Kerem Shalom crossing into Gaza each day to the sites after Israeli inspection meant that supplies ran out too early, leaving thousands empty-handed, angry, and disbelieving there was no more food to be had. On May 30, BCG abruptly withdrew from the project. Amid what several people familiar with the situation said was internal criticism of perceived anti-Palestinian initiatives, the company said that members of its team had undertaken 'unauthorised' efforts on post-war planning. Two senior partners, it said in a statement, had been 'exited ... from the firm' and BCG 'has not and will not be paid for any of their work.' The end game Despite ongoing problems and frequent reports of gunfire nearby, the GHF food programme achieved a rhythm of sorts after a few weeks. News releases provided a daily accounting of tens of thousands of boxes of pasta, lentils, cooking oil and other commodities it distributed. But the killing of civilians in the vicinity of GHF sites has continued. Last month, eight Palestinian volunteers were shot and killed, allegedly by Hamas, aboard a bus returning them to GHF sites after visiting their families. Early this month, this IDF said 'terrorists' had tossed grenades into a distribution site, injuring two American contractors. Then came the deaths in last Wednesday's stampede. 'We came to Gaza to help feed people, not to fight a narrative war,' GHF spokesman Chapin Fay told reporters hours after the stampede deaths, publicly accusing Hamas of causing the carnage by showing up at the site with guns. Aid organisations said it was the predicted result of Israeli militarisation of what should be a neutral endeavour. On Sunday local time, at least 79 Palestinians were killed when food-seeking crowds mobbed a UN aid convoy in the northern part of the enclave and were fired on by Israeli troops, according to Gaza health authorities and witnesses. The IDF said it was 'aware of the claim' and that details of the event were 'being examined'. Acree, the GHF interim executive director, repeated appeals to the UN and other aid organisations to co-operate with the foundation. 'The demand for food is relentless, and so is our commitment,' he said in a statement. 'We're adjusting our operations in real time to keep people safe and informed, and we stand ready to partner with other organisations to scale up and deliver more meals to the people of Gaza.' GHF contracts expire at the end of August, unless a ceasefire comes first. If and when the fighting stops, it remains unclear how much aid will be allowed into Gaza and who will distribute it. Since late June, Trump has said repeatedly that negotiations were going well and that a truce was imminent.
Scoop
13 hours ago
- Scoop
NZ And Allies Condemn 'Inhumane', 'Horrifying' Killings In Gaza And 'Drip Feeding' Of Aid
New Zealand has joined 24 other countries in calling for an end to the war in Gaza, and criticising what they call the inhumane killing of Palestinians. The Prime Minister said New Zealand was part of a joint statement calling on Israel to immediately end its war in Gaza because it's now an absolute "catastrophe". Christopher Luxon said Israel was going too far, adding the Israeli food program was being "dribbled out". The countries - including Britain, France, Canada and Australia - also condemned the Israeli government's aid delivery model in Gaza as "dangerous". "We condemn the drip feeding of aid and the inhumane killing of civilians, including children, seeking to meet their most basic needs of water and food" They said it was "horrifying" that more than 800 civilians had been killed while seeking aid, the majority at food distribution sites run by a US- and Israeli-backed foundation. "We call on the Israeli government to immediately lift restrictions on the flow of aid and to urgently enable the UN and humanitarian NGOs to do their life saving work safely and effectively," it said. "Proposals to remove the Palestinian population into a 'humanitarian city' are completely unacceptable. Permanent forced displacement is a violation of international humanitarian law." The statement said the countries were "prepared to take further action" to support an immediate ceasefire. Reuters reported Israel's foreign ministry said the statement was "disconnected from reality" and it would send the wrong message to Hamas. "The statement fails to focus the pressure on Hamas and fails to recognise Hamas's role and responsibility for the situation," the Israeli statement said. Foreign affairs minister Winston Peters told Morning Report, New Zealand had chosen to be part of the statement as a way to have its voice heard on the "dire" humanitarian situation in Gaza. "The tipping point was some time ago... it's gotten to the stage where we've just lost our patience..." Peters said he wanted to see what the response to the condemnation was. "The conflict in the Middle East goes on and on... It's gone from a situation where it was excusable, due to the October 7 conflict, to inexcusable as innocent people are being swept into it," he said. "I do think there has to be change. It must happen now." Luxon wanted the UN and other NGOs to be let in to ensure there was "unfettered access" to humanitarian assistance, "as there should be". He also said the statement had raised the E1 settlement programme, "which essentially splits the occupied territories into two." Luxon said he didn't think that would set up conditions for what needs to happen, "which is a two state solution". "That's why you've also seen us go very hard against extremist ministers calling for settlements which we think are illegal under international law. "The ICJ made a pretty clear ruling, a provisional ruling, and we expect Israel to be bound and compliant with that." Luxon said New Zealand can have more impact with its statements and words by joining with like minded friends, to "put more volume to those statements." "We're calling it out and saying it's got to stop. "It's gone to a new depth, and it's unacceptable. "This has gone too far. This is an absolute catastrophe now." Luxon said there could be further action if Israel doesn't take note, but wouldn't define what that is. The statement also called for Hamas to release hostages "unconditionally and immediately" Luxon said. Labour's foreign affairs spokesperson Peeni Henare said the statement was long overdue, but wanted to see what else the government could do. "It's one thing to be clear on the rhetoric with respect to the delivery of aid and food, but actually let's call this out for what it is." University of Otago Professor Robert Patman told Midday Report it was a "big deal" because most of the countries who signed on "constitute key members of what might be called 'the West', countries which most of whom are liberal democracies." He said the statement He acknowledged the United States and Germany weren't on the list. But Patman said it was quite clear the majority of liberal democracies, many of whom he said had remained "disgracefully quiet during much of this tragedy that's unfolded in Gaza since the Hamas attack", were now indicating "enough is enough". Patman pointed out the statement also hinted at further action if the Israeli government doesn't respond. He said Benjamin Netanyahu had made no secret he opposed a two-state solution, but "virtually all countries" who signed the statement are "adamant" there should be a two-state solution to the Israeli-Palestinian conflict. As to whether the United States would respond to the statement, Patman said he expected the Trump administration to criticise it. But he said Trump would have to reconcile that 25 countries is a substantial number of entities, and the United States risked isolating themselves in its support for Israel. "That is having consequences for the United States' global reputation." The war in Gaza was triggered when Hamas-led militants attacked Israel on 7 October, 2023, killing 1200 people and taking 251 hostages, according to Israeli tallies. Israel's subsequent air and ground war in Gaza has killed more than 56,000 Palestinians, according to its Hamas-run health ministry, while displacing almost the entire population of more than 2 million and spreading a hunger crisis.
Scoop
13 hours ago
- Scoop
CNMI's delegate seeks clarification from US Treasury on use of federal tax revenues
, RNZ Pacific Commonwealth of the Northern Marianas correspondent The delegate for the Commonwealth of the Northern Mariana Islands (CNMI) to the United States Congress, Kimberlyn King-Hinds, has formally asked the US Treasury to clarify how fedeal taxes generated in the territory are being utilised. Delegate Kimberlyn King-Hinds sent a formal request to US Treasury secretary Scott Bessent seeking clarification. According to Section 703(b) of the CNMI's Covenant with the US, federal income taxes and other federal revenues derived from sources in the CNMI needs to be returned to the local government. In her letter, King-Hinds raised concerns that significant tax revenues linked to federal activity in the CNMI are not being returned to the local government as the Covenant provides. She pointed specifically to recent Department of Defence construction projects on Tinian totaling more than $153 million. Despite the scale of federal spending, the CNMI government received only $87,000 in reported tax revenue. "This provision was included in the Covenant to ensure that when activity happens in the CNMI, the returns from that activity are shared with the CNMI," she said. " "The people of the Northern Marianas and our government should see the benefit of economic activity occurring in their islands, especially when it is federally funded." Section 703(b) outlines a range of federal taxes that are to be paid into the CNMI Treasury, including income taxes derived from the CNMI and taxes on goods produced or consumed in the Commonwealth. King-Hinds noted that the provision applies regardless of where a contractor is headquartered, so long as the income is derived from work in the CNMI. "Nearly five decades after this language was adopted, we still do not have clear implementation of this section," she said. "As more federal funding and contract work flows into the CNMI, the question of how those revenues are treated under the Covenant is increasingly urgent." King-Hinds is requesting that the Department of Treasury clarify its interpretation of Section 703(b) and determine whether income taxes collected on work performed in the CNMI, particularly by off-island contractors, are appropriately credited to the CNMI government. She also indicated that if legislative steps are needed to reinforce the Covenant's requirements, she is prepared to work with Congress to advance those changes. "This is a practical issue with real consequences for the CNMI's ability to operate and plan for the future," King-Hinds said. "The Covenant will only endure if we remain committed to upholding its terms and ensuring its provisions are followed, including making certain the CNMI receives the revenues it is owed. I appreciate Secretary Bessent's attention to this request and look forward to a constructive dialogue on how we can ensure the Covenant is implemented as intended." During a recent CNMI House of Representatives hearing, Rep. Marissa Flores said the CNMI only collected a mere $87,000 in fees and taxes from $153-million worth of military activities in the Northern Marianas. Flores shared that data, which she said was shared at a recent meeting with the military, at the end of the House Standing Committee on Ways and Means budget hearing from the Department of Finance (DOF) last 9 July. "Why are we not collecting? What is the problem?" Flores asked DOF and the Division of Revenue and Taxation. "All this military build-up is happening…Are you collecting tax on developer's tax at all with the military?" she added. Division of Revenue & Taxation director Daniel Alvarez responded, "I do not believe the military projects fall under developer tax. I would probably have to confirm that with legal." Flores said the CNMI also needs to monitor how many military developers are being brought in because the island does not have the workforce. "We're losing money in that area. So many projects came and left, and we're only charging on the construction tax. Again, which is another problem, because now we know that they're bringing in their construction material," she explained. The lawmaker recommended that DOF have an increased presence on Tinian. Finance Secretary Tracy Norita later clarified that it has been a long-standing issue. "This is a conversation that has been going on between the municipality of Tinian and my office and [Department of Public Works] on who's going to assess the tax. "We've received information from DPW, I believe they've asked for [the Attorney-General's] opinion on whether they can assess the tax. To this day, I don't believe they're assessing it because there is no legal authority to assess the developer's tax on the military projects. "And so at this point, I believe it's legislation that's required to specify what exactly is exempted from the developer tax, whether it's a military project with an independent contractor or only military projects that are conducted by the military themselves," Norita added. "So again, it goes back to the legislation and the authority for DPW to assess the developer's tax." DPW Secretary Ray Yumul said they submitted an internal Legal Services Request form to the CNMI AG a few months ago but have not received a response.
