Tax Reform Taskforce and Overseas Development Assistance held meetings

Tax Reform meeting was chaired by VP Alik and attended by the Governors of Pohnpei and Yap and Representatives for Chuuk and Kosrae.

On April 11, two separate meetings took place at the President's Conference Room following the closing of the meeting for the 2023 Planning Committee.

1. The FSM Tax Reform Taskforce

            The Executive Committee of the Tax Reform Taskforce held a meeting yesterday chaired by Vice President Alik L. Alik. The meeting considered a number of items ahead of the upcoming 5th special session of Congress. Congress will convene on April 15 for a 5-day session, unless shortened by resolution of Congress. Reforming the tax system in the federation has been a huge dragged-on challenge that has taken over ten years. More information on the outcome or decisions of the Executive Committee meeting will be available pending notice by the Tax Reform Project Office.

2. Overseas Development Assistance

          The main focus of the meeting was to engage with State participants and other National Government officials regarding the proposed ODA Policy that is currently with the President for review and submission to Congress for approval. The ODA Policy formulation was done with much of the work done by the SBOC ODA Division through consultation with a broad range of stakeholders throughout the federation, including political leaders, government offices and departments, private sector members, interests-groups, NGO's, development partners for the FSM (foreigners) and others with development interests in the FSM.
SBOC staff did indicate that the policy will also be shared with FSM's development partners for their comment as a way to ensure all-around endorsement and concurrence to the policy. More information will be available pending final work by ODA Division, specifically on the purposes and benefits of having a unified policy in this development area.  

The ODA meeting was attended by Senator Robert P. Nakasone (2nd from left) and Senator Ishmael Lebehn from Pohnpei State Legislature (3rd from left). Also attending were Secretary Rufino Mauricio (4th from left) and Secretary Vita A. Skilling, not pictured.

2023 Planning Committee Holds Inaugural Meeting

sitting, L-R: Mr. Lipar George, Kosrae State Representative; T.H. Alik L. Alik, FSM Vice President; H.E. Manny Mori, FSM President; T.H. John Ehsa, Pohnpei State Governor; T.H. Johnson S. Elimo, Chuuk State Governor; T.H. Sebastian Anefal, Yap State Governor... Standing L-R: Senator Bob Skilling, Kosrae State Legislature; Mr. Michael Kulesza, First Secretary of the Australian Embassy; Mr. Miguel Ordonez, Deputy Chief of Mission at US Embassy; Ambassador Zhang Lianyun, China Embassy; Ambassador Eiichi Suzuki, Japan Embassy; Mr. Hans Van Rijin, Asian Development Bank Representative; Mr. Leo Falcam Jr., President's Chief of Staff

 

Palikir, POHNPEI (FSM Office of SBOC) – The 2023 Planning Committee held its inaugural meeting on April 9, 2013 at the Cliff Rainbow Hotel Conference Room. The Committee, which was established by Executive Order No. 40 on March 6, 2012, is comprised of membership from the executive leadership of the FSM National and four State Governments. For this inaugural meeting, representatives from the five legislative branches of government across the nation were also invited, as well as the resident Diplomatic Corps.

During his keynote statement, President Manny Mori conveyed that the nature of the loose federation of the FSM also lends to significant challenges in the implementation of the nation’s development goals. President Mori went on to highlight that the convening of the committee provides a clear indication of the desire to address those and other challenges in light of the looming expiration of economic provisions of Title Two of the Amended Compact in 2023 as well as the expected shortfall of the Compact Trust Fund.

The three State Governors and one Governor-representative present were invited to give opening remarks, all of whom touched on their hope to find workable solutions to the challenges expressed by the President and the vision and need to move forward as a nation. Other sentiments expressed by the State Governors ranged from the recently concluded Long Term Fiscal Frameworks and burden-sharing, a re-visitation of the FSM’s budget distribution formula, increased revenue enhancement measures and the notion that revenues must be transferred to the States where services are closer to the people.

Ambassador Eiichi Suzuki also gave opening remarks as Dean of the Diplomatic Corps, represented by Ambassador Zhang Lianyun of the Embassy of the People’s Republic of China, Deputy Chief of Mission Miguel Ordonez of the US Embassy and First Secretary Michael Kulesza of the Australian Embassy. Ambassador Suzuki indicated that last November, during the FSM’s Development Partners’ Forum there was recognition of many issues to overcome. He noted that he followed discussions on the formation of the committee, looked forward to seeing its progress and was pleased to bear witness to the inaugural meeting and the potential of the committee. On behalf of the Diplomatic Corps, Ambassador Suzuki expressed his fervent wish that the committee successfully achieves its goals for the transition period and indicated continued support of the FSM’s ongoing development efforts.

The meeting continued the next day in the President’s Cabinet Room, where the members confirmed President Manny Mori and Governor Lyndon Jackson as co-chairmen. The committee also endorsed the Terms of Reference, which calls for the development of a Comprehensive Action Plan in addressing the fiscal and economic challenges leading up to and post-2023. Members were also provided an overview of the resources available to the committee, specifically an appropriation by the 17^th FSM Congress in the amount of $150,000, which amounts to 60% of the initially proposed budget for the Committee’s work. As Secretariat to the Committee, the Office of SBOC was tasked to work with key development partners such as the Asian Development Bank to secure technical expertise to support the Committee’s work including that of a Macroeconomist, Sector Specialists and a Development Planner. The 2023 Planning Committee will present its findings and recommendations to the State & National Leadership Conference for consideration and adoption after 12-18 months. Once endorsed by the leadership, the Action Plan will be shared at the next FSM Development Partners’ Forum planned for late 2014.

A significant portion of the second day’s discussions revolved around the expected challenges in implementation of the Action Plan. Members acknowledged that implementation challenges will include the securing of necessary legislative action.

For a copy of the committee’s Terms of Reference, please visit the Office Statistics, Budget and Economic Management, Overseas Development Assistance & Compact Management (SBOC) website at www.sboc.fm or for further information, contact the SBOC Division of Compact Management at (691) 320-2823 or email ssalle@sboc.fm.

FSM National Government to Convene a 3rd Investment Facilitation Symposium

Palikir, Pohnpei (Dept. of Resources and Development): The National Government is convening a Symposium on Investment Facilitation in the FSM for May 6-9, 2013 at the COM-FSM Gymnasium, Palikir, Pohnpei. The main objective of the proposed Symposium is to discuss and make recommendations on measures to facilitate investments in the FSM, focusing on improving the business climate, enhancing financial literacy of the private sector as well as the confidence of financial institutions to lend to the private sector, with the ultimate objective of achieving long-term economic growth and sustainable development.

The Symposium will build on previous Banking and Investment Symposiums that took place in the late 1990s and 2000 and subsequent reforms, recommendations from the 2011 National Economic Summit, and the December 2012 Development Partners Forum; and will be followed by a State and National Leadership Conference on May 10, 2013, which will consider and endorse recommendations of the Symposium. International agencies such as the Asian Development Bank, the World Bank, and the Alliance Forum Foundation will be in attendance to provide technical assistance to the Meeting.

In order to ensure a thorough discussion, and formulate specific and achievable recommendations as well modalities for implementation, President Manny Mori designated an Organizing Committee comprised of FSM Department of Resources and Development, Office of SBOC, FSM Development Bank, and FSM PetroCorp to conduct a nation-wide consultation with all relevant stakeholders (Executive and Legislative Branch, Private Sector, and NGOs) that are involved directly or indirectly in investment facilitation at the State and National level. The Committee has undertaken consultations with Pohnpei State, Yap State, and the National Government, and is currently in Chuuk for that process, with the final consultation to be undertaken in Kosrae State next week.

The Department of Resources and Development serves as the focal point for the proposed Symposium, and can provide any clarifications and answers to questions from the general public regarding the proposed Symposium via email at fsmrd@fsmrd.fm or via telephone at (691) 320-5133.

FSM joints the international community in condemning the DPRK’s increasing aggressive threats – Pacific should be a region of peace, harmony, security and economic prosperity

Palikir, POHNPEI (Dept. of Foreign Affairs): The FSM joins the international community in condemning in the strongest terms the Democratic People’s Republic of Korea’s increasing aggressive threats, specifically naming bases in Guam, Okinawa, and other facilities around the Asia Pacific rim as targets, as recently reported in the news media. These recent threats by North Korea have further escalated tensions not only on the Korean peninsula, but throughout the Pacific region. This is most regrettable because Pacific Islands Forum Leaders believe the Pacific can, should and will be a region of peace, harmony, security and economic prosperity.

In the name of peace and stability of the Asia Pacific rim and beyond, the FSM urges the Democratic People’s Republic of Korea to return to the six party talks, cease its nuclear testing program, as well as its ballistic missile activities.

The FSM attaches great importance to its membership in the United Nations and is in full support of the efforts by the UN Security Council in addressing security issues on the Korean peninsula. In this regard, the FSM urges the Democratic People’s Republic of Korea to comply with the relevant UN Security Council (UNSC) resolutions, including UNSC Resolution 2094 (2013), and appeals to the international community to abide by the relevant sanctions provisions of UNSC resolutions.

For further information, write fsmpio@mail.fm or call 320-2548.

Second Day for the 2023 Planning Committee kick-off meeting

around the table clockwise from left: Senator Bob Skilling, Kosrae; Mr. Lipar George, proxy for Governor Jackson of Kosrae State; Governor John Ehsa, Pohnpei State; Governor Sebastian Anefal, Yap State; Chuuk State AG Sabino Asor, sitting in for Governor Johnson Elimo; President's Chief of Staff, Mr. Leo Falcam Jr.; Sancherina Salle, SBOC; Director Evelyn Adolph, SBOC and Secretariat to the 2023 Planning Committee; President Mori; Vice President Alik and Secretary Lorin S. Robert, FSM Department of Foreign Affairs

On the second day during its 2-day kick-off meeting, the 2023 Planning Committee resumed with President Manny Mori recapping from yesterday's proceeding. He said 3 items were on the table for action.

 Selection of Chairman:

The Leaders agreed to utilize a co-chairmanship arrangement for the committee. It was further agreed that President Mori and Governor Lyndon H. Jackson of Kosrae State will be the Co-Chairmen.

The other two items discussed had to do with the Terms of Reference for the committee and its budget. Congress had approved a budget of $150,000. The Leaders also indicated the need to hire an economist and other expert staff.

Further information will be provided after the secretariat has made its concluding work for this kick-off meeting. 

2023 Planning Committee opening meeting kicks off in Pohnpei

President Mori giving his remarks

The 2023 Planning Committee, created by Executive Order No. 40 on March 6, 2012 held its opening meeting in Pohnpei on April 9, 2013.

Opening the meeting, FSM President Manny Mori made an opening remark that set the tone for the committee that is expected to carry out a massive and crucial task the next twelve months to assist the five Governments in the FSM in dealing with the anticipated termination of Compact grants comes 2023.

Except for the State of Kosrae, all Governors from the other States were present to open the deliberation of the committee, which will comprise of a representative from each State and one from the National Government. The chairperson for the committee will be selected by the President, according to the Executive Order.

The Leaders made some preliminary discussions today on how to proceed with the committee, assisted by the FSM Office of Statistics, Budget and Economic Management, Overseas Development Assistance and Compact Management (SBOC) -- the secretariat, and the President’s Chief of Staff.

The Leaders will hold an Executive Session tomorrow afternoon to further clarify the committee's Terms of Reference and undertake other considerations that will allow the committee to commence on its mandate with the appropriate resources, technical staff, professional support, etc.

The Governors and State Representative expressed agreement to the convening of the committee at this time to ensure vigilant collaboration as the Compact winds down to 2023.

The Leaders echoed very similar statements, stressing the importance of not only addressing budgetary shortfalls from Compact grants withdrawal and the expected shortfall in the Compact Trust Fund yields but also the urgency of the ultimate responsibility to “grow the economy” and build opportunities in a realistic and committed manner.

Ambassador Eiichi Suzuki of Japan, Dean of the Diplomatic Corp, also made a remark, stressing the importance of the committee’s mandate, which is believed to convey a clear message of commitment to making concerted effort together in building a way forward for everyone, utilizing a broad support system. 

A detailed reporting on the meeting will be made after results and outcomes are shared by the Secretariat.

The link to the Executive Order is provided below. 

http://www.fsmpio.fm/Executive_order_40.pdf

President Mori and Bishop Amando Samo dialogue on possible future for St. Cecilia School

President Mori with Bishop Samo on April 6 at the Jesuit House in Kolonia

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At the Jesuit House in Kolonia, Pohnpei, President Manny Mori and Bishop Amando Samo of the Diocese of the Caroline Islands held discussions on April 6, 2013 regarding a concept for the renovation of St. Cecilia School in Chuuk.

In an April 5 letter to the Bishop, President Mori said:

"Under the Amended Compact, there are available specific grants for infrastructure, especially for health and education facilities. Chuuk State has a large allocated grants, but because of the land issues regarding government legal authority to use government and private lands, no new schools have been built during the first ten years of the Amended Compact. There seemed to be no viable solutions available at this time. Based on this fact and the dire need of new school buildings for the elementary as well as high school students, here is a concept that I must share with your for your consideration."

A the meeting, President Mori sought for Bishop Samo's support of the project concept that would require a long-term use right or outright purchase of mission land where St. Cecilia School is located and direct changes to other school arrangements (such as school governance structure) in order to facilitate government-church partnership in all aspects of "school improvement" for the future the school.

The discussion provided the opportunity for the two leaders to share the concept as outlined by the President and consider areas of responsibilities to allow the Church-owned school and the FSM Government to package a justifiable proposal that would merit the use of Amended Compact grants for school facilities.

"St. Cecilia School with clear land title is an excellent candidate to utilize Compact funds. The school has contributed significantly to the socio-economic development of the State of Chuuk, and it can continue to do so in the future. It is only fitting that the government directly contribute to rebuilding this important Chuuk State asset", the President further stated in his letter.

The President also said that the National Government "will be working with US Government to ensure the condition of Compact Grants for this type of project". 

Bishop Amando Samo expressed appreciation to President Mori and spoke of his willingness to progress a partnership with the government that would secure the long-term viability of St. Cecilia School with possible support as envisioned in the concept being discussed.

Bishop Samo is in Pohnpei on an annual routine as the Bishop who ministers to the Catholic faithful of Pohnpei and administers the rest of the Diocese of the Caroline Islands.

With the Bishop at the meeting were Fr. Julio Angkel, vicar of Pohnpei, and Fr. Ken Urumolog S.J.

Accompanying the President was Secretary Lorin S. Robert.

For further information, write markapito@gmail.com.