STOP FSMTC from Derailing the World Bank Grant

My email address is I created this email and discussion to address a wrong that has been instigated by the CEO for FSMTC to basically derail the World Bank Grant to fund the Fiber Optic Connectivity for Yap, Chuuk, and Kosrae and with it, the Liberalization of our Telecom Market.

In a nut shell, the CEO has twisted the World Bank Proposal to imply that it would not be beneficial for the Country when in truth, the World Bank Proposal was initiated to push the development of our Nation.

Countries as well as Corporations will not invest in Micronesia if the communications infrastructure is a monopoly or does not have a history of good service.

The World Bank Proposal would have allowed competitive rates for ADSL, 3G or 4G, as well as a host of other services that FSMTC should have provided a decade ago.

The Proposal was meant to allow FSMTC to continue to be a corporation with the same core functions yet not handle the business aspect of the telecom operations. By doing so, FSMTC would not compete in the market but lease its infrastructure to entities interested in doing business in country.

As stated by Sohn_Kawa, the CEO is protecting his investment in the Corporation. With the World Bank Proposal, FSMTC would cease to service customers however will provide access to any and all incoming telecom operators.

This effectively takes away any potential revenue that is presently being accumulated by ACCLinks and the rumored partnership between the owner and the CEO.

Citing a source that does not want to be named because he/she does not have the authority to speak on behalf of FSMTC, he/she has informed WikiLeaks.691 that what Sohn_Kawa mentioned regarding the 10% interest for the cellular revenue being paid to ACCLinks is true.

However, he also mentioned that there was a discrepancy in the contract. The contract mentioned revenue for 2G and 3G would both be generated if ZTE replaces the Huawei equipment and that ACCLinks would only collect 10% of the 3G revenue as understood by the Board.

Unfortunately, when 3G came online, the CEO failed to mention that there was no longer a 2G network and that ACCLinks would be collecting 10% of all the revenue.

This was a huge loss of revenue for the Corporation and the information was omitted from FSMTC's financial report. The chairman of the board was made aware of this however he chose look the other way as with many of the complaints that the employees of the corporation have submitted

A special note, we do have a copy of the official contract between ACCLinks and FSMTC and it does reflect what our source has mentioned which we will be posting in this forum if it becomes necessary.


  • Thank you Snowden for the support.

    Yes, in short, the CEO may stand to lose a lot of money if the World Bank Proposal moves forward. I hope your source can provide proof that there actually is a percentage that is being paid to a foreign company. All my knowledge of this situation is from word of mouth.
  • Very interesting....
  • Here is a sneak peak at page 2 of the contract. It is mind boggling how the board approved this contract, especially if you see that 70% of the revenue generated by the 3G system went to ACCLinks.

    Also, if our source is correct, there was no 2G network after ZTE was installed so that means ACCLinks was collecting how much from the revenue generated?

    FSM leaders, we need your assistance in investigating how this could have happened. Are the board members involved in any personal gain for this to have been signed off?

  • Ohhh Snap, this is bullshit. How did the board allow this to happen? They should be ashamed of themselves. Self righteous and self serving assholes in my opinion.

  • The CEO and the Chairman of the Board for FSMTC should resign citing this new information that Snowden_691 has revealed.

    From what little I know of contracts, it seems like the arrangement here was motivated by greed. How could the Board and the CEO allow such large margins in percentage to be paid to this chinese company?

    It seems like the first year, without the mentioned 2G revenue, this company would have been collecting the full revenue for the new system.

    2nd Year would be 90% of the revenue and so forth.

    Commissions anyone? :) :) $$$$$$$
  • A new source who does not want to be identified has shed new light on this situation. It seems FSMTC chose ZTE equipment and ACCLinks was because FSMTC claimed Huawei was charging too much for maintenance.

    If this was the case, how was it any better to have gone with ACCLinks since nearly the entire revenue for the new system for the first 3 years was paid to the ACCLinks?

    I have also been informed by this new source that Huawei only charged $100k for the yearly maintenance however for the 3 years that Huawei Cellular System was in service, FSMTC did not pay Huawei a dime.

    These are conflicting statements since the whole purpose of changing vendors was the high maintenance fees that were literally draining the corporation. This was the claim made by the executives of Telecom to President Mori who in turn waived the bidding process and allowing ACCLinks to sneak in their proposal.

    I am also informed that Huawei came in at a lower cost than ACCLinks by nearly $1 million dollars.

    This is corruption at its highest levels of government.
  • This is serious allegations sir! I think enough to convene a formal inquest. In law enforcement, the FBI calls this shit - Probable Cause.

    Bid rigging, potential kickbacks, racketeering, and violation of rule #34 of the International Code of Ethics for Ninjas which can result in a very long bitch slap.

  • Coconut, I doubt the President at that time was involved but it goes to show how far FSMTC went to pull a fast one on the national government and the President.

    But you are correct, this should be sufficient for probable cause.
  • This just in, FSM Telecom is negotiating with ACCLinks once again to buy a prepaid system able to support flexible plans.

    FSM Telecom paid ACCLinks $4 million dollars for the new cellular system that replaced Huawei.

    From the then COO, Fredy Perman, he was quoted as saying ZTE is better than the old Huawei system they had yet now they are buying more equipment from ACCLinks to be able to basically do what the Huawei equipment had was already been doing.

    So much false statements just to accommodate ACCLinks. This is definitely sufficient probable cause for Public Auditor to investigate.

    Seriously, the Board was either blind or were led astray by the in-law Chairman of the board.

  • This is madness! Why hasn't there been any serious investigation? If Snowden_691 knows about this and has been provided with information from someone else, this definitely means more people are aware of what is going on. They are probably a part of the scam or afraid of Fredy.

    Snowden, you should come forward and tell it to the faces of those responsible to do the investigation. This is not something to slap a wrist for, it should take a whipping of the ass and some sukusuk on the head with a sakau ceremony by the CJ of the nation
  • Sinbad, the information we received mentions his Ford Truck as being purchased directly after ACCLinks secured the contract for the provisioning of wireless TV services for the States of Chuuk and Yap.

    The second Ford was purchased directly after the signing of the internal contract between ACCLinks and FSMTC for the provisioning of the new 3g network.

    Our source informs us the vehices were purchased in cash and no loan was made.

    We were unable to verify this aside from the fact that the timing of the purchases did coincide with the timing of the contract agreements.

    Since wikileaks.691 cannot conduct official investigations, we are leaking this information in order for the proper authorities to verify officially whether white collar crimes have been committed.

  • Can you guys file a formal, concerned-citizen, complain to FSM AG Office? Sorry I don't know how the legal system works.
  • 'Waasaawaaass.....'

    ...says my non-chuukese neighbor. Tsk tsk tsk.
  • Yes, and now that the chairman and the board has allowed him to be the only executive in the Corporation, now will be free to do as he wishes like destroy evidence or push more money to his Chinese friend.

    This is the only time FSM Telecommunications Corporation has ever operated with out a Vice President or Deputy General Manager.

    How can there be balance with only one executive controlling the corporation? The board does not interfere with daily functions of the corporation so what was the board thinking?

    Even if Mr. Perman was trustworthy which I doubt he is from what Snowden has revealed, the board should never have allowed the corporation to operate with out a second in command.
  • Here is a list someone told me of what ACCLinks sells to FSM Telecom. Here they are below.

    1. SIM Cards
    2. Prepaid Cards
    3. Wireless TV Equipment
    4. Cheap Cell Phones that break in a month or two
    5. Banners, Posters, and Signs
    6. Cellular Network Hardware
    7. The failed LED birthday sign by the street that has been put down.

    Some of the above are yearly purchases in the 10s of thousands.

    Altogether, FSMTC has spent nearly $10,000,000.00, if not more to this one vendor. They have never shopped around for cheaper vendors because of favoritism to this one company.

  • Sohn.Kawa, can you please have your source contact me at
  • These are all very strong allegations and another reason why we should tear down the monopoly service/road blocks and start introducing more completion into FSM. @Snowden_691, huge commendation on your initiative. Many frustrated Tech individuals like myself and countless others are behind your cause.
  • Remember the cartoon movies, 'Speedy Gonzales,' 'Roadrunner,' and 'Tom & Jerry.'
  • So where are all Fredy Perman's supporters in this forum now that actual documentation has been provided or should I say exposed
  • Planning next move. But don't worry. Do what you believe should be done to stop the madness.
  • There is but one suggestion I have to make after reading all of this terrible madness! Where is the family in all of this? We all know at one time that "nan imwalap mwahu" was accorded to the mother of this family because of the so many successes the siblings had accomplished in life. So my suggestion is this; One member of this family must advise the alleged, and correct these allegations if they were in fact taking place. What say you readers?
  • Oalong, yes, someone should advise the CEO to resign due to all the exposed information that is now in the public eye.

    This however does not take any from the fact that this situation stinks like a white collar crime and therefore should be dealt simply as one.

    The Nation should address this issue before anymore future Purchase Orders are signed off to this ACCLinks company.

    An ethics review should also be conducted against the board members of FSMTC.
  • Snowden_691

    Another good suggestion which simply means a very good advise given the situation with the CEO. By the way who are the current board members of the telecomm?
  • Oalong, the board members consist of 3 veteran members. They are:

    Chairman and in-law of CEO - Mr. Len Isotoff
    Vice Chairman - John Sigrah
    Secretary - James Gilmar

    New members:

    Rich Adams
    Ricky Cantero

    It is unfortunate to hear from our sources that the Chairman has not been as objective as his position entails.
  • What does it take to get Congress to gather for a formal hearing to address this issue?

    The fact that FSMTC lied to the President of the FSM is a major issue of concern. If they went this far to have the President waive the bidding process on the cellular network, who knows what else they are hiding in the closet.
  • @morder, who wouldn't be disgruntled after this revelation? It is frustrating to see the amount of corruption in the system and see people like you who don't give a care about it.
  • Need to keep this thread alive!!!
  • Monopoly is no stranger to Micronesia. Continental or FSM telecom. Your problem is not fighting for fairness. Bandwidth and access not it was back.then. Telecom think your dumb because it is a new thing. So in a way they are going the Continental Airlines way.
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