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Marshalls Government Rules Out Support For Troubled Tuna Firm ff

12 October 2004 Marshall Islands

The Marshall Islands government says it will not bail out a financially-troubled tuna processing factory in the capital, Majuro. Government officials say the factory's continued requests for state funding are untenable.

The managing director of Philippines, Micronesia and Orient Line, Robert Colson, has written to the president, Kessai Note, asking for the government's support. Mr. Colson wants the government to support a USD 200,000 loan from the Bank of Marshall Islands so the plant can process USD 1 million worth of stored frozen fish, which is in danger of spoiling. He says if the plant does not resume operations within a very short period of time, the fish will go bad.

The plant is the largest private sector employee in the capital city and has been shut since the end of August because of cash flow problems.