FSMTC Board Meeting this week.

The CEO is back from Burgos Street in Manila and heads straight to the Board Room.

Let us hope the Board in all its wisdom reorganizes the Board in order to address abuse, nepotism, high employee turnover rates, and the corporation 's continued decline.

If the present management continues its losing streak, they will have no chance against any competition come next year.

FSMTC needs a new Chairman and a new CEO to show there is effort in dealing with its continued losses and continued criticism.

Comments

  • edited December 7
    You keep saying FSMTC is at loss. Can you please show us some figures? I'm asking you because one of the board members boasts that Pohnpei and Chuuk are making profits. And that profit covers Yap and Kosrae's losses and in total, FSMTC is at profit.
  • Sinbad,

    I copied the below from a previous post. As you can see from, there are figures showing loss. As for the board member boasting about Pohnpei and Chuuk making profit, let us see some figures.

    All in all, FSMTC is one corporation serving the four states. If Yap and Kosrae are not profiting then that should still be considered a loss.

    "According to the latest & previous audits, FSMTC has been very strong in the “Net Operating Loss” department & impressive in the “Administrative Expenses” department.

    2016 – Net Operating Loss of $481,606 Administrative Expenses $9,508,220
    2015 – Net Operating Loss of $1,135,608 Administrative Expenses $9,882,752

    2014 – Net Operating Loss of $995,138
    2013 – Net Operating Loss of $743,765
    2012 – Net Operating Loss of $807,488"

  • Press Release 2017-04 FINAL in pdf format March 30 2017.pdf
  • Below is an excerpt from the document TruthIsThat posted above. In the bold and underlined section, it states that the corporation has been experiencing a loss for the last 9 years.

    Well, shouldn't that be expected when the current CEO does not report to work? Even during his tenure as the Vice President and Chief of Operations, he hardly, if ever, logged more than 20 hours a pay period. One would make the excuse that he is exempt but come on, is this how a multi-million dollar corporation is supposed to operate?

    A CEO should lead by example but I guess this is how this organization operates. As long as this corporation serves under the umbrella of the National Government, this type of unprofessional ethics in the workplace will continue unchecked. It is quite unfortunate its board has been unable to turn the tide however shouldn't that be expected if you have in-laws that serve in the 2 most powerful positions in the Corporation? The positions of the Chairman and the CEO should have no personal ties whatsoever. In a real world scenario and provided the corporation is not a private one, the Chairman should relinquish his position and accept a lower role in the Board of Directors citing conflict of interest but once again, I guess this is how this organization operates.

    "Audit Findings and Opinion
    Findings: Finding No. 2016-001 - RUS Loan Noncompliance (Repeated Finding, FY13 to FY15)
    The Corporation was in noncompliance with Section 5.12, TIER Requirement, of the RUS Loan Agreement
    regarding the required TIER rate to be maintained. Management was fully aware of the situation as to the
    non-compliance to TIER required by RUS, due to the fact that the Corporation has been experiencing
    losses for the last 9 years including FY2016
    . The Board of Directors has noticed the weight of the RUS
    loan financing to the financial condition of the Corporation and has given priority in resolving the issue."
  • In FY2016, the Corporation was
    able to increase its operating
    revenues while managing its
    operating expenses, resulting in a
    net operating income of $171,303,
    an improvement in operations, as it
    marked the first time the
    Corporation achieved a net
    operating income since FY2006.

    it's an accomplishment!
  • That is an accomplishment indeed, as opposed to Snowdens above. I did hear the same story.
  • edited December 10
    D
  • You people have such low expectations regarding FSMTC. I honestly believe that FSMTC can make millions in net operating income if a proper rate strategy is put in place.

    That said, it is due to the unwillingness of the CEO to put in his full 80 hr work schedule that is hampering him from assessing any knowledgeable input that may set this corporation in the right direction.

    I know of several private businesses in Pohnpei and the FSM that equal or exceed this $100,000.00 net profit annually. So lets not dwell on a meager $100,000.00 as justification that this corporation is actually doing something.

    Furthermore, I honestly believe an additional audit organization should verify Deloitte's finding as they have been auditing FSM Telecom for far too long. Without an additional independent audit, we seriously won't know whether Deloitte has been actually doing a proper audit for FSMTC for years now.

    Deloitte has specific parameters that it audits and does not go outside of the box therefore it is only allowed to view what Telecom sees fit to provide. So in reality, it is a basic audit and not a full audit that also includes operations.

    We will just have to wait and see the 2017 audit for FSMTC and pray there is more of an extensive audit than what has been ongoing for decades.

    I seriously would like to see how FSMTC would fair against an operational audit.

    Operational Audit is a systematic review of effectiveness, efficiency and economy of operation. Operational audit is a future-oriented, systematic, and independent evaluation of organizational activities. In Operational audit financial data may be used, but the primary sources of evidence are the operational policies and achievements related to organizational objectives.[1] Operational audit is a more comprehensive form of an Internal audit.
  • Seriously, Snowden, you seem to know a great deal and up your sleeve are bundles of undisclosed information about the corporation. I wonder where FSMTC's Department of Human Resources looked when searching for a new CEO when Mr. Akinaga and Mr. Yamada retired. I bet it was another "look the other way" process during the board's hiring replacement deliberation.
  • May the Spirit of this Holy Season lighten up your heart and rest your case, at least during this Joyous month. Happy Holidays, Snowden!
  • Sinbad, as I have stated previously, it is an unfortunate fact that the chairman is the CEO's in-law. I have been informed that he was disclosed several abuses of corporate policy by the CEO yet did not follow through on any action.

    In our FSM culture, is it not taboo for us to do any harm, physically or otherwise, to our in-laws?

    As for the Holy Season, I do know that there are countless individuals who have lightened spirits due to my continued resolve to uncover and publicize what is a continued misuse of power by both the CEO and the Chairman. This abuse is basically unhinging this corporation to a point that it is teetering on a cliff ready to fall into an abyss once liberalization of the market commences next year.

    Perhaps it is already too late but yes, happy holidays to everyone on this forum.
  • Oh BOY! Another revelation of a foreseen harm to FSM's own corporation. So it is a known fact that "once liberalization" the FSMTC will "fall into an abyss." Or is it not, Snowden?


  • All will be revealed once liberalization commences.
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