February 8, 2001 Press Release

SGMA Advises Garment Workers on Money Scams

SAIPAN - In response to recent scams that bilked Chinese guest workers out of their money with promises of high interest savings plans, the Saipan Garment Manufacturer's Association (SGMA) is alerting foreign laborers to take precautions before giving their money to just anyone. SGMA has begun distributing to its 31 member factories a flyer that offers an advisory to workers and lists all the banks and remittance companies on Saipan that have been licensed by the CNMI Department of Commerce.

"It is the right of every individual to do what they like with their paycheck, regardless of their status. As employers, we should never interfere with a worker's right to decide whether they keep their money, spend it, send it home, or put it in a licensed financial institution where it can earn interest. But in light of incidents where innocent guest workers were cheated, we want our factory workers to know that their employers care and want to help protect them," said SGMA Executive Director Richard A. Pierce.

The flyer, which is entitled, "Are you looking for a safe place to put your money while you are working on Saipan?" will be translated into Chinese, as well as other languages spoken by factory workers, according to Pierce. Text of the flyer reads: "For your protection, following is a list of legitimate companies that are licensed to do business on Saipan by the CNMI Department of Commerce."
"If someone offers an interest rate that sounds too high, workers should take precautions. By providing a list of the licensed financial institutions, we hope this subtle endorsement will bring home the message that they should proceed cautiously with anyone not on the list," added Pierce.

The Saipan Garment Manufacturer's Association represents 31 of the islands' 34 garment factories. Employing 15,000 people, including 2,400 local residents, garment manufacturing is a driving economic force in the Commonwealth of the Northern Mariana Islands.