CNMI: Abramoff scandal puts spotlight on garment industry
ABC Radio Australia
The United States biggest political scandal in recent years now appears set to move to a remote corner of the Pacific. The Commonwealth of the Northern Mariana Islands is a U-S territory roughly half way between Hawaii and the Philippines, with a population of just 80 thousand people. But evidence now emerging from Washington has placed the islands’ newly elected governor at the centre of the recent scandal surrounding disgraced Republican lobbyist Jack Abramoff. And as Mr Abramoff prepares to reveal all about his dealings as part of a plea-bargain, the Northern Marianas are set to become a household name – for all the wrong reasons.
Presenter/Interviewer: James Panichi
Speakers: Nico Pitney, Researcher, Center for American Progress; Juan Babauta, former CNMI governor; Alice Fisher, Senior US Justice Department Official; Samuel McPhetres, former president, Saipan Chamber of Commerce
FISHER: Abramoff had a congressman insert statements in the congressional record, had a congressman endorse a wireless telephone contract for the House of Representatives, had a congressman agree to seek passage of legislation to help Abramoff’s clients.
PANICHI: That was senior US Justice Department Official Alice Fisher listing the charges levelled against Washington lobbyist Jack Abramoff.
In January the Republican insider pleaded guilty to fraud, tax evasion and conspiracy to bribe public officials. He has now agreed to a plea bargain with federal prosecutors, in a bid to reduce his jail sentence. And according to Ms Fisher, authorities are determined to follow all leads.
FISHER: We will not shy away from that responsibility no matter where the trail leads.
PANICHI: But that could be bad news for the Northern Marianas, known by the acronym CNMI. The territory’s powerful garment industry dominates local politics and had come to rely heavily on Mr Abramoff’s political contacts.
At the centre of the debate is local garment mogul, Willie Tan. His company, Tan Holdings, had been keen to undermine moves by Democrats in Congress to extend federal immigration and minimum wage laws to the CNMI.
In the 1990s, former president of the local Chamber of Commerce, Samuel McPhetres, testified in both houses of Congress. He told legislators the CNMI was committed to raising the minimum wage and end what Congress argued was the exploitation of its imported Asian workforce.
MCPHETRES: The senators and representatives were all quite satisfied that we were working in the right direction, and promised that they would not take any action, just let it go naturally without the big upheaval, the instant federalisation.
But when I got back to Saipan within about six months, when they were going in for the next 30-cent increase, Tan Holdings and some of the other garment interests descended on the legislature and said if you pass one more 30-cent increase we’re going to leave. So they froze the law right there, so that’s why it’s been at $3.05 an hour since 1996.
PANICHI: But in order to maintain that exemption from federal laws, the garment industry needed friends in Washington. Through Jack Abramoff’s lobbying efforts it was able to obtain the support of former Republican majority leader Tom DeLay.
But not only did Congressman DeLay support the CNMI garment industry in Washington, he also got involved with local politics on the islands.
He sent a team of advisers to the capital, Saipan, to support the political ambitions of then unknown CNMI legislator Benigno Fitial.
Late last year Mr Fitial was elected as the island’s governor, defeating incumbent Juan Babauta. And now Mr Babauta is demanding to know what role Mr Abramoff, Congressman DeLay and the CNMI garment industry played in his political demise.
BABAUTA: Mr Fitial was positioning himself to be speaker and eventually, of course, to become governor, all in the name of the garment industry – preserving the industry – and extending any kind of economic assistance to Mr Willie Tan.
PANICHI: This is where Mr Abramoff’s evidence comes into play. He’s expected to reveal how the garment industry has managed to impose its agenda on the US Congress, and how it managed to successfully install its own candidate in the local CNMI legislature.
However, some observers think it’s unlikely the garment industry will allow the Abramoff scandal to interfere with its efforts to lobby congress.
Nico Pitney is a researcher with the Washington-based think tank, the Centre for American Progress. He says lobbyists like Jack Abramoff have been able to deliver tangible results for the Islands.
PITNEY: You had, over six years, bills being raised every year that had majority support, that couldn’t even get a vote because of Abramoff’s influence on top members of Congress, you know, in the Republican leadership.
Both the Marianas Government and also the garment association that hired Abramoff, both of their practices were probably part of the system. You know, Abramoff’s getting a lot of the press now, but it’s an everyday occurrence.
