Updated: 5 hours ago
The establishment of ZO Motors in the Commonwealth of the Northern Mariana Islands (CNMI) raises profound national security, geopolitical, and intelligence concerns, particularly given the territory's documented history of catering to Chinese Communist Party (CCP) aspirations through corruption, money laundering, and strategic infiltration.
While ZO Motors presents itself as a Japanese manufacturer of zero-emission commercial vehicles, its deep-rooted connections to Chinese entities and operations in a region rife with CCP influence demand scrutiny.
This move could inadvertently—or deliberately—bolster Chinese proxy activities in a U.S. territory strategically vital to countering Beijing's aggression in the Indo-Pacific.
Expanding on these threats, the CNMI's partnerships with entities like EUCON International University, which claims to be a Christian institution but aligns with Chinese government-linked programs, exemplify how educational facades may
serve as conduits for human trafficking, agent insertions, and broader infiltration.
READ ABOUT EUCON'S FULLY FUNDED CNMI/CHINA TECH PARK>>> https://www.guampdn.com/news/proposed-saipan-tech-park-expected-to-pour-in-2b-touted-as-savior-of-cnmi-economy/article_14e2d474-f56a-11ef-89d2-ff877e4698e9.html
Similarly, the sordid history of the Imperial Pacific International (IPI) casino underscores a pattern of CCP-linked corruption that has eroded U.S. sovereignty in the region. From a defensive homeland security context, a critical question arises: Why would allowing ZO Motors to establish operations in the CNMI undermine the Pacific Deterrence Initiative (PDI), a cornerstone of U.S. strategy to maintain regional stability and deter Chinese aggression?
ZO Motors: Japanese Facade with Chinese Foundations
ZO Motors Co., Ltd., headquartered in Tokyo, specializes in electric commercial trucks and has announced plans for a manufacturing facility on Saipan, CNMI, following a $12.95 million property purchase from the bankrupt Imperial Pacific International (IPI) casino.
The company touts global ambitions, with facilities in Cambodia and a new U.S. headquarters in Fontana, California. However, investigations reveal ZO Motors as a subsidiary of ZO Future Group (Hong Kong Stock Exchange code: 02309), founded in Wuhan, China, in 2019.
Its executive team includes veterans from Chinese firms like Weichai New Energy, Beijing Foton, and Zhongtong Bus, with strategic partnerships enabling product development and sales outside China.
These alliances include a 2024 cooperation agreement with Weichai New Energy for new energy vehicle manufacturing and global sales, leveraging Weichai's third-generation pure electric platform.
Additionally, ZO Motors partnered with Zhongtong Bus in August 2024 to enter the zero-emission bus market, further entrenching its ties to Chinese automotive giants.
These ties echo broader U.S. concerns about Chinese automakers.
Senators have probed companies like BYD and SAIC for CCP leverage over connected vehicles, warning of data access, surveillance via cameras, and potential remote disablement through over-the-air updates.
While ZO Motors is not explicitly listed in these inquiries, its Chinese origins and supply chain raise similar risks, especially in CNMI—a territory already penetrated by Beijing's networks. For instance, connected electric vehicles could map U.S. military installations in the Marianas, transmit sensitive data back to China, or even serve as vectors for cyber intrusions into local infrastructure.
In a region hosting key U.S. bases like those on Guam, such vulnerabilities could compromise operational security during a potential Indo-Pacific conflict.
Moreover, ZO Motors' global expansion, including partnerships for distribution in West Asia, North Africa, and Southern Europe, aligns with CCP strategies to export technology that could embed backdoors for intelligence gathering.
This expansion not only bolsters China's economic footprint but also positions ZO Motors as a potential tool for soft power projection, where manufacturing hubs in strategic locations like CNMI could facilitate technology transfer and data collection under the guise of economic development.
The company's Cambodian plant, for example, draws on Chinese supply chains vulnerable to CCP mandates under national security laws, requiring data sharing with Beijing.
In CNMI, this could mean vehicles assembled locally incorporate components with embedded malware, threatening U.S. interests in a PDI-critical area.
CNMI: A Hub for CCP Aspirations, Corruption, and Infiltration
CNMI's vulnerability to Chinese influence is well-documented.
The Imperial Pacific casino, from which ZO Motors acquired property, exemplifies this: a $2 billion project tied to CCP-linked figures, accused of massive money laundering, human trafficking (including "birth tourism" for Chinese nationals to gain U.S. citizenship), and corruption of local officials.
FBI raids uncovered ties to criminal syndicates, with billions in VIP bets deemed impossible without illicit activities. Local leaders, including family members of governors, received payments, fostering "regulatory capture" where Chinese interests embed influence.
Delving deeper into IPI's history reveals a protracted saga of exploitation and evasion.
Originally known as Best Sunshine International, IPI secured an exclusive casino license in 2014 under dubious circumstances, promising economic revival but delivering scandal. Construction began in 2015, but by 2017, the FBI raided the site following a worker's death, uncovering hundreds of undocumented Chinese laborers smuggled in under false pretenses.
Violations of workplace visa systems were rampant, with workers enduring forced labor conditions akin to modern slavery. In 2018, another FBI raid targeted money laundering suspicions, as the casino handled astronomical bets—up to $3.9 billion in 2017 alone—from high-rollers tied to Chinese triads.
The scandals escalated in 2019 with FBI raids on IPI offices, Governor Ralph Torres' home and office, and related businesses, probing wire fraud, money laundering, and illegal foreign contributions.
Indictments followed in 2020 against IPI executives for harboring illegal workers and tax evasion.
By 2024, IPI filed for bankruptcy with $165 million in liabilities, culminating in the recent arrest of majority shareholder Lijie Cui on January 13, 2026, for immigration violations.
Cui, a Chinese national, was detained at Saipan airport, highlighting ongoing visa abuses.
This arrest, amid ties between IPI and new buyers like Team King Investment, suggests persistent CCP influence, as court documents noted close relationships facilitating asset transfers.
The IPI saga alone demonstrates how CCP proxies exploit lax oversight, turning CNMI into a laundering hub for illicit funds from mainland China, potentially funding espionage or military activities.
Such operations not only siphon U.S. tax dollars but also create networks for further infiltration, including through "birth tourism" where pregnant Chinese women travel to CNMI to give birth, granting U.S. citizenship to their children—a tactic that has seen over 30,000 such births since 2009, often facilitated by shadowy agencies tied to Beijing.
This extends to repopulation strategies: Filipino chain migration often funnels workers into Chinese-owned firms or sympathetic entities, while "baby tourists" exploit CNMI's U.S. status.
CNMI officials have lied to federal partners, stifling U.S. homeland security duties.
Tan Holdings and IPI scandals highlight how CNMI has "sold out" American interests, transferring U.S. tax dollars abroad via fraud and waste.
Broader infiltration includes visa loopholes allowing Chinese nationals to enter CNMI without visas, leading to illegal boat transfers to Guam for "suspicious activities" near U.S. bases, as noted in intelligence reports. This pattern aligns with CCP's use of organized crime, including triad-linked casinos, to launder money and bribe officials, eroding local governance.
The economic allure of Chinese investment masks these risks, as seen in CNMI's reliance on tourism and gambling, which peaked pre-COVID but left a legacy of debt and corruption.
By 2025, efforts to revive the economy through new Chinese ventures, like ZO Motors, perpetuate this cycle, drawing scrutiny from U.S. lawmakers concerned about supply chain dependencies and espionage.
To further illustrate the depth of Chinese-linked corruption in CNMI, a review of open media sources reveals a consistent pattern of federal and local cases from 2008 to 2025.
These incidents highlight systemic issues, from visa fraud to money laundering, often involving Chinese businesses exploiting CNMI's unique status as a U.S. territory with local immigration control.
Timeline of Federal and CNMI Cases Against Chinese Businesses or Corruption (2008-2025)
• 2009: Introduction of visa-free entry for PRC nationals, leading to surges in undocumented workers and birth tourism. Federal reports noted initial abuses, with U.S. Customs and Border Protection intercepting over 500 Chinese attempting illegal entry to Guam via CNMI.
• 2013: Alleged conspiracy begins involving Chinese casino developers and local officials, tied to money laundering through "slush funds." U.S. government filed forfeiture complaints in 2020 linking back to this period.
• 2014: Imperial Pacific International (IPI) awarded exclusive casino license amid bribery allegations. Investigations later revealed ties to Chinese triads and improper payments to CNMI politicians.
• 2015-2016: Construction violations at IPI site; federal probes into labor abuses, including smuggling of Chinese workers. EB-5 visa fraud allegations surface in 2025 lawsuit tied to unbuilt projects from this era.
• 2017: FBI raid on IPI construction site after worker death; uncovered 100+ undocumented Chinese laborers in forced conditions. Charges included harboring illegal aliens.
• 2018: FBI raid on IPI for money laundering; $3.9 billion in suspicious bets probed, linked to Chinese high-rollers and triads. DOJ seizes funds tied to corruption.
• 2019: Multiple FBI raids on IPI offices, Governor Torres' properties, and related firms for wire fraud, money laundering, and illegal campaign contributions (18 U.S.C. §§ 1343, 1956, 441e). Over $300,000 seized from "MCS" accounts.
• 2020: Indictment of IPI executives Liwen Wu, Jianmin Xu, Yan Shi on federal charges including RICO conspiracy, harboring illegal aliens, and unlawful employment (18 U.S.C. § 1962). Additional forfeiture of $456,079 from consultant Alfred Yue's accounts.
• 2021: Ongoing labor violation lawsuits against Chinese firms; CNMI AG probes zoning bribery involving Chinese investors.
• 2023: Governor Palacios requests federal investigations into public corruption linked to Chinese casinos; highlights $1.6 billion in misused funds.
• 2024: IPI bankruptcy filing reveals $165 million liabilities; federal scrutiny on asset transfers to Chinese-linked buyers like Team King Investment.
• 2025: Chinese EB-5 investors sue for $13.4 million fraud tied to unbuilt CNMI casino project, alleging breach of fiduciary duty and misrepresentation.
CNMI AG secures conviction in zoning bribery case involving Chinese business interests.
DOJ indicts Giselle Butalid and Clarissa Adlawan for theft of federal funds linked to Chinese corruption schemes.
FBI "closes" investigations into Torres/IPI, prompting criticism.
These cases paint a picture of entrenched corruption, where Chinese businesses exploit CNMI's lax regulations for illicit gains.
From 2009's visa policy enabling human trafficking to 2025's EB-5 fraud, federal interventions have exposed billions in laundered funds and abused workers. The 2017-2020 IPI probes alone led to multiple indictments, highlighting RICO violations and political bribery.
By 2023, Governor Palacios' calls for DOJ assistance underscored the need for stronger federal presence, yet 2025's investigation closures raise questions about enforcement.
This carousel of corruption not only drains U.S. resources but also creates vulnerabilities for CCP infiltration, as seen in money flows potentially funding espionage.
Expanding on this, the economic fallout from these cases has left CNMI with massive debts—$121 million in public debt by 2025—while federal aid is siphoned abroad.
The EB-5 lawsuit, filed in New York, details how developers diverted funds since 2016, promising green cards but delivering nothing, exemplifying how Chinese investment preys on U.S. visa systems. Similarly, the zoning bribery conviction involved payoffs for land rezoning favoring Chinese firms, eroding local governance.
These patterns mirror global CCP tactics, using economic incentives to embed influence, as noted in U.S. congressional hearings.
In CNMI, this has fostered a culture of "regulatory capture," where officials prioritize foreign interests over American security, stifling PDI efforts and homeland defense.
EUCON International University: A CCP Proxy Masquerading as Christian Education?
University, which positions itself as a "Christian" college but forms alliances with Chinese entities, raising suspicions of it serving as a CCP conduit for infiltration.
EUCON, licensed by the CNMI Board of Regents and accredited by the Transnational Association of Christian Colleges and Schools (TRACS), has faced multiple legal challenges that undermine its credibility.
In 2019, Zaji Obatala Zajradhara, an Afro-Latino U.S. citizen practicing Buddhism, sued EUCON for religious discrimination after being denied employment due to his faith.
In 2021, teacher Yantao Xia filed a lawsuit alleging breach of contract, unpaid wages, and labor violations, claiming EUCON failed to honor employment terms. EUCON denied these allegations, but the cases highlight operational irregularities. Earlier, EUCON's license was revoked for misrepresenting documentation and failing to comply with regulations, though it was later reinstated. CNMI records also note violations of local employment preference laws and discrimination.
EUCON's partnerships further fuel suspicions. In 2025, it announced an alliance with Shenzhen Youxuele Technology Education Co., Ltd., to promote education, fintech, and tourism, aiming to transform Saipan into a hub for real-world asset digitization, AI, and financial
technologies. Led by Chen Guiqin, a
Chinese national with two decades in CNMI promoting investment, this partnership leverages CNMI's U.S. framework for "compliant" development.
However, Shenzhen-based firms like Youxuele often have CCP ties; a similar entity, Shenzhen Youxin Technology Co., Ltd., faces U.S. sanctions for illicit activities.
Broader reports indicate CCP infiltration of education abroad, using "private" companies to acquire schools and promote ideology.
EUCON's other collaborations include Bob Jones University for academic exchanges, Bank of the Federated States of Micronesia for economic initiatives, and LaoLao Bay Golf & Resort for a "University City."
Newspaper articles highlight EUCON's push for a $2.7 billion Silicon Valley-inspired tech park on Saipan, projected to create 10,000 jobs and boost GDP by 30%. Yet, "Tench Centers" (likely a reference to tech centers in these plans) raise red flags, as they could facilitate data centers or innovation hubs vulnerable to CCP espionage.
These initiatives, while promising economic revival, could enable data exfiltration or AI development for dual-use purposes, aligning with CCP's "military-civil fusion" strategy.
From an America First perspective, EUCON appears as a CCP proxy, fronting as a Christian school to mask human trafficking and agent insertions. If truly Christian, how does it access Chinese government programs and universities when Christians in China face severe persecution?
The CCP's "Sinicization" program forces alignment with party ideology, raiding underground churches, arresting leaders, and banning unsanctioned activities. In Wenzhou ("China's Jerusalem"), hundreds were arrested pre-Christmas 2025.
True Christian entities lack such access; EUCON's ties suggest it's a facade for CCP agendas, potentially smuggling agents under student visas or using fintech for money laundering.
This mirrors broader CCP tactics in the Pacific, where educational and economic partnerships serve as vectors for influence, eroding U.S. control over its territories. The tech park proposal, for instance, could attract Chinese "talent" under educational exchanges, facilitating repopulation and intelligence operations, much like birth tourism.
Geopolitical and Intelligence Implications: Insights from AUKUS, Five Eyes, INDOPACOM, and CENTCOM
U.S.-led alliances emphasize protecting against Chinese aggression and infiltration in the Pacific. AUKUS, formed in 2021, counters Beijing's revisionist ambitions through technology sharing, including nuclear-powered submarines, amid concerns over economic coercion and military expansion.
Five Eyes intelligence-sharing has highlighted PRC police advisers, naval deployments, and leverage in Pacific Islands, creating vulnerabilities for external actors like China. INDOPACOM reports detail Beijing's "coercive tactics," including militarization of islands and disruption of trade routes. While CENTCOM focuses elsewhere, overlapping threats like cyber attacks tie into Pacific risks.
In CNMI, ZO Motors' presence could facilitate intelligence gathering via connected vehicles, data exfiltration, or economic dependencies, aligning with CCP strategies to undermine U.S. alliances.
EUCON's tech park could host dual-use technologies, enabling surveillance or AI for military applications.
These risks are amplified in the context of broader Chinese infiltration of U.S. Pacific territories, where CCP tactics include visa exploitation, economic coercion, and proxy influence to deny U.S. access and erode sovereignty.
Intelligence assessments warn that such footholds could disrupt PDI logistics, as Chinese firms map infrastructure for potential sabotage.
The Pacific Deterrence Initiative: CNMI's Role and ZO Motors' Threat to It
The Pacific Deterrence Initiative (PDI), established by Congress in the FY2021 NDAA, represents a pivotal U.S. strategy to counter CCP aggression in the Indo-Pacific, modeled after the European Deterrence Initiative.
PDI prioritizes enhancing U.S. deterrence, defense posture, ally assurance, and readiness through targeted investments, functioning as a budget display to ensure transparency and focus on regional gaps.
For FY2025, the President's Budget requested $9.86 billion, organized into six categories: Modernized and Strengthened Presence ($2.72 billion), Improved Logistics ($1.32 billion), Exercises and Innovation ($3.02 billion), Infrastructure Improvements ($1.44 billion), Ally Capacity Building ($1.11 billion), and INDOPACOM Capabilities ($258 million). Congress has consistently reauthorized PDI, with FY2024 authorizations reaching $14.71 billion, exceeding requests by over 60%.
CNMI plays a central role in PDI, hosting infrastructure upgrades, exercises, and basing enhancements critical for deterrence.
FY2025 PDI includes military construction in the Northern Mariana Islands, such as exercise-related projects supporting BALIKATAN and VALIANT SHIELD, and theater posture initiatives. NAVFAC awarded a $990 million Indo-Pacific Multiple Award Construction Contract in 2025 for PDI support in CNMI, enabling resilient infrastructure.
Exercises like Resolute Force Pacific deploy hundreds of personnel to Saipan and Tinian, underscoring CNMI's strategic value.
Tinian receives $78 million for divert projects under PDI, including airfield revivals for Agile Combat Employment.
CNMI Governor Arnold Palacios supported PDI, emphasizing balanced investments to accommodate military influxes
From a homeland security perspective, why would ZO Motors in CNMI undermine PDI? CNMI's integration into PDI enhances U.S. posture west of the International Date Line, enabling dispersed operations and resilient logistics against CCP threats.
However, ZO Motors' Chinese ties risk embedding CCP-linked technology in a PDI-critical area, potentially compromising infrastructure through surveillance-enabled vehicles or supply chain vulnerabilities.
This could erode deterrence by providing Beijing intelligence on U.S. exercises, basing, and logistics—key PDI pillars.
In a region where China pursues "coercive gradualism" via proxies, ZO Motors could facilitate economic dependencies, mirroring IPI's corruption, and weaken CNMI's resilience to infiltration. Allowing such operations contradicts PDI's aim to counter CCP dominance, risking U.S. tax dollars funding adversaries while stifling American companies.
To safeguard PDI, CNMI must prioritize U.S. firms, aligning with America First to fortify Pacific deterrence. PDI's success hinges on secure territories; ZO Motors' entry could introduce cyber risks, as Chinese EVs have been flagged for data breaches in U.S. probes.
Paid Campaigns Against U.S. Security: Who Funds the Opposition?
CNMI's government actively seeks "bedfellows" with adversaries, funding or enabling campaigns against U.S. military "expansionism."
These include protests against drills, flyovers, and bases, often portraying them as imperial overreach. Funding traces to Chinese-linked entities: IPI and similar operations have donated to local causes, while pro-CCP sympathizers amplify anti-U.S. narratives.
Open sources suggest Tan Holdings and casino revenues indirectly support these via political donations and community "benefits."
READ HERE>>>
Timeline of Protests Against U.S. Military in CNMI/Guam (2008-2025)
Here's a chronological list of key protests:
• 2008: Massive street protests in Guam against relocating 8,600 Marines from Okinawa, citing overpopulation and environmental strain.
• 2010: Lawsuits and demonstrations force DOD to revise plans; 10,000 public comments highlight opposition.
• 2011-2013: Ongoing resistance to firing ranges, including Prutehi Litekyan actions against land grabs.
• 2017: "People for Peace" rally in Hagåtña against military parades and buildup.
• 2018: Solidarity protests with CNMI against training expansions.
• 2021: Opposition to live-fire ranges atop ancient sites; Indigenous groups sue over environmental impacts.
• 2022: Protests against Marine influx, emphasizing cultural erosion.
• 2023: "No Kings" nationwide protest includes Guam actions against military displays.
• 2024: Chamorro-Filipino led complaints to UN on militarization and decolonization.
• 2025: Tinian/Saipan meetings disrupted by Prutehi Guåhan and Marianas for Palestine, protesting environmental damage and linking to global conflicts.
These protests, often amplified by CCP sympathizers, undermine U.S. readiness in a flashpoint region.
CNMI Population Trends: Imported Voices and Constitutional Questions
U.S. Census data shows CNMI's population fluctuating amid migration:
Year Population
2008 57,150
2010 53,883
2020 47,329
2023 45,143
2024 44,278
2025 50,255 (estimate)
Declines reflect economic woes, but increases tie to immigration from Philippines and China.
Why should U.S. security apparatus heed primarily imported, non-native voices—many dual citizens who allegedly defrauded visas and overstayed until gaining "CNMI-only" status via payoffs? Is this constitutional?
Such arrangements bypass federal immigration, raising Equal Protection concerns under the 14th Amendment, though CNMI's covenant allows local control.
This demographic shift enables CCP proxies to influence policy, diluting American interests.
The 5th Amendment and Taxpayer Burdens Or, America, you're getting Royally Fkd***
The 5th Amendment guarantees due process and prohibits taking property without compensation.
Yet, why fork over billions in U.S. tax dollars to CNMI—a pro-CCP enclave that defrauds, wastes, and transfers funds to China and the Philippines?
CNMI offers little in return, undermining homeland defense while benefiting adversaries. Federal aid, including COVID recovery funds, often funnels into corrupt schemes, as seen with IPI's misuse.
Delving deeper into this taxpayer burden reveals a pattern of fiscal irresponsibility and outright malfeasance, exemplified by the recent $257.4 million audit findings and the scandal-plagued BOOST program.
READ IT HERE >>> https://www.cnmiga.org/post/257-million-vanished-in-the-cnmi-and-delegate-king-hinds-still-says-federal-intervention-is-not
The CNMI's single audit report for fiscal years 2020 through 2022, released in October 2025 by the Office of the Public Auditor (OPA) and the Department of Finance, flagged an astonishing $257.4 million in questioned costs. Conducted by Ernst & Young, this audit scrutinized federal expenditures and issued a disclaimed opinion, indicating severe deficiencies in financial reporting and compliance that prevented auditors from forming a reliable assessment.
Questioned costs refer to expenditures that potentially violate federal regulations, such as improper procurement, inadequate grant monitoring, and failures in internal controls, putting the CNMI at risk of having to repay substantial sums to the U.S. government. OPA's Michael Pai highlighted that these issues confirm the Palacios-Apatang administration inherited a government in "financial disarray," with unprecedented noncompliance across multiple federal programs.
The audit's revelations underscore how U.S. taxpayer dollars—intended for disaster relief, infrastructure, and economic recovery—have been squandered through systemic mismanagement, often benefiting foreign interests rather than American citizens.
A significant portion of these questioned costs stems from COVID-19 relief funds, where OPA has suggested potential criminal charges against CNMI officials for misuse.
For instance, the audit identified lapses in tracking American Rescue Plan Act (ARPA) allocations, including failures to ensure funds were used for eligible purposes.
This ties directly into broader concerns about CNMI's handling of federal aid, where money flows to entities with ties to China and the Philippines, diluting U.S. sovereignty and security.
The $257 million figure is not just an accounting error; it represents a betrayal of the 5th Amendment's principles, as American taxpayers are effectively deprived of their property (tax dollars) without due process, only to see it enrich adversaries.
READ IT HERE:>>> https://www.cnmiga.org/post/open-letter-to-rep-sam-graves-do-not-believe-anything-coming-from-delegate-kim-king-hinds
Congresswoman Kimberlyn King-Hinds, in her October 2025 newsletter, broke down the audit, emphasizing the need for transparency and rejecting calls for federal intervention, yet the scale of the findings demands accountability.
Without repayment or reforms, this could jeopardize future federal funding, forcing CNMI to cut essential services while U.S. taxpayers foot the bill for repeated bailouts.
Compounding this fiscal fiasco is the CNMI BOOST program—Building Optimism, Opportunities, and Stability Together—a $17 million initiative funded by ARPA to support small businesses and non-profits amid the pandemic's economic fallout.
Launched under former Governor Ralph Torres' administration, BOOST was meant to stimulate recovery but instead became a symbol of corruption, with federal funds allegedly granted to ineligible recipients, including non-Americans, in violation of federal regulations. ARPA guidelines, administered through the U.S. Treasury, require that funds prioritize U.S. citizens, residents, and domestic entities, yet investigations revealed BOOST awards to foreign-owned businesses and individuals lacking proper documentation, bypassing citizenship and residency requirements.
For example, the program's lax eligibility criteria allowed grants to entities tied to Chinese and Filipino investors, many of whom were non-U.S. citizens or held temporary visas under CNMI's unique immigration system.
This not only contravened federal rules mandating that relief aid benefit American workers and communities but also funneled U.S. dollars abroad, potentially through remittances or investments in foreign economies.
The CNMI House of Representatives launched inquiries in December 2022, summoning former Finance Secretary David Atalig, who oversaw BOOST, to testify. Atalig invoked his 5th Amendment rights against self-incrimination over 100 times during a March 2024 hearing, refusing to answer even basic questions about fund allocation.
This led to a unanimous vote by a special committee to hold him in contempt, with Superior Court Judge Kenneth Govendo affirming the charge in a bench trial. Citizens' lawsuits, filed in October 2023, accused Atalig of systematically approving grants for personal associates, family members, and politically connected individuals, including conflicts of interest with the Bank of Saipan, which received $500,000 while administering the program.
Reports described BOOST as a "heist," where public money was stolen, squandered, and exploited for political gain. Governor Arnold Palacios, upon taking office, invited U.S. inspectors general from four agencies to probe ARPA spending, highlighting the program's failures in procurement and compliance—echoing the $257 million audit's themes.
These violations raise profound 5th Amendment questions: How can the U.S. government justify seizing taxpayer property through taxes, only to redistribute it in ways that undermine national security and benefit foreign adversaries?
In CNMI, where a significant portion of the population consists of foreign workers from China and the Philippines, BOOST's improper grants effectively transferred federal funds to non-Americans, violating ARPA's intent to bolster U.S. economic resilience. This not only wastes resources but also perpetuates demographic shifts that favor CCP-linked repopulation strategies, as funds support businesses employing or owned by foreign nationals sympathetic to Beijing.
The program's mismanagement, including unverified financial ledgers and missing receipts, led to calls for all recipients to submit documentation, yet enforcement remains spotty. Federal authorities, including the DOJ's White Collar Crime Task Force, have been involved since 2023, but closures of related investigations in 2025 have sparked criticism for lack of accountability.
Ultimately, the $257 million audit and BOOST scandals illustrate a vicious cycle where U.S. taxpayers subsidize CNMI's pro-CCP leanings without reciprocity. Billions in cumulative aid—over $1 billion in federal grants since 2008—have been funneled into a territory that stifles American military expansion, lies to federal partners, and transfers wealth abroad.
This deprives taxpayers of due process, as their funds are taken under the guise of territorial support but used to aid infiltration.
To align with America First principles, Congress should condition future aid on reforms: mandatory audits, citizenship priorities for grants, and bans on foreign-linked entities.
Without such measures, CNMI remains a taxpayer-funded vulnerability in the Pacific, eroding homeland security while adversaries reap the benefits.
ZO Motors and the America First Agenda
What does ZO Motors' CNMI operations mean for America First in the Pacific?
In a corruption hotspot like the CNMI, it risks advancing CCP geo-strategic infiltration, weakening U.S. supply chains, and eroding sovereignty—contrary to prioritizing American security and manufacturing.
The House, Senate, intelligence, and military communities should adamantly oppose ZO Motors or any CCP front company in CNMI. Instead, urge CNMI CEDA and government to hire American, buy American, and bring American companies to the CNMI!
From the perspective of America's containment ambitions via INDOPACOM, ZO Motors' foothold in the CNMI represents a direct threat to U.S. efforts to deter Chinese aggression in the Indo-Pacific. INDOPACOM's strategy, as articulated by Admiral Samuel Paparo in early 2026, emphasizes immediate readiness for potential conflict with China, particularly by 2027, through integrated information operations, cyber capabilities, and resilient logistics west of the International Date Line.
The command's focus on "meta trends" like cognitive warfare and space-enabled threats underscores the need for a fortified first island chain, including territories like the CNMI, to counter China's militarization and coercive tactics.
Yet, allowing a company with deep Chinese roots—like ZO Motors, tied to Wuhan-based origins and partnerships with state-linked firms such as Weichai New Energy—to establish manufacturing in this strategic outpost undermines PDI's $10 billion FY2026 investments in modernized presence, infrastructure resiliency, and ally cooperation.
CNMI's proximity to key U.S. bases in Guam and Tinian makes it a linchpin for Agile Combat Employment and rapid deployment exercises like Resolute Force Pacific, but CCP proxies could exploit connected vehicles for mapping military assets or disrupting supply chains, eroding the deterrence by denial that INDOPACOM prioritizes.
This infiltration aligns with Beijing's "coercive gradualism," turning U.S. territories into vulnerabilities rather than strongholds, directly contravening America's goal of maintaining overmatch in the region.
President Trump's staunch position on China further amplifies why ZO Motors' CNMI venture clashes with America First principles. In his 2025 National Security Strategy, Trump reframed China as a "near-peer" economic rival rather than an ideological foe, emphasizing winning through tariffs, technological dominance, and transactional deals to prevent military confrontation.
By January 2026, Trump has imposed aggressive measures, such as 25% tariffs on countries trading with Iran—potentially hitting China—and reiterated that being "anti-tariff is pro-China" during speeches in Detroit, underscoring his commitment to protecting American manufacturing from subsidized foreign competition.
Despite approving Nvidia chip exports to China under national security conditions, drawing bipartisan criticism for possibly empowering Beijing's AI ambitions, Trump's overall stance prioritizes economic warfare to curb China's global influence. Allowing ZO Motors—a facade for Chinese EV tech—in CNMI contradicts this, as it risks bolstering Beijing's supply chain dominance in critical sectors like zero-emission vehicles, which Trump has targeted with tariffs to shield U.S. auto workers.
His pivot toward the Western Hemisphere, including interventions in Venezuela, aims to deny non-hemispheric competitors like China strategic assets, yet overlooking CNMI's vulnerabilities leaves a backdoor in the Pacific, potentially ceding ground to Xi Jinping's sphere-building.
America First demands rejecting such encroachments, ensuring U.S. territories don't become conduits for CCP economic coercion that weakens domestic industry and security.
Senator Marsha Blackburn's concerns regarding Chinese electric vehicles provide a stark warning about the perils of ZO Motors in CNMI, aligning perfectly with America First's focus on safeguarding U.S. data and infrastructure.
In 2024, Blackburn, alongside Senator Gary Peters, probed major Chinese automakers like BYD and SAIC on their CCP ties, highlighting risks of surveillance via vehicle cameras, data exfiltration to Beijing, and potential remote disablement through over-the-air updates—threats that could map critical infrastructure or surveil Americans. By 2025, she co-led efforts to investigate Autel Energy, a Chinese EV charging firm linked to CCP-affiliated entities, urging its addition to entity lists due to data collection vulnerabilities tied to U.S. power grids.
Blackburn's STOP China Act (S.1711), introduced in May 2025, prohibits federal funds for procuring vehicles or tech from CCP-influenced firms, emphasizing that taxpayer dollars shouldn't subsidize entities beholden to Beijing's national security laws.
In Senate hearings, she pressed Trump's DOT nominee on halting Chinese EV chargers in the U.S., arguing they pose espionage risks akin to drones from sister companies on military blacklists. Extending this to ZO Motors' CNMI plans, her warnings underscore how Chinese EVs could embed backdoors in a U.S. territory, compromising INDOPACOM's cyber defenses and enabling CCP leverage over Pacific logistics.
For America First, this demands rejecting ZO Motors to prevent eroding sovereignty, instead fostering U.S.-led manufacturing that bolsters supply chains and counters China's dominance in EVs, where it exports over a billion dollars annually despite tariffs.
Epilogue: Fiscal Fiascos and the Erosion of Trust
As we conclude this examination of the CNMI's entrenched patterns of corruption—from the money-laundering scandals of Imperial Pacific International casinos to the insidious infiltration risks posed by ZO Motors' Chinese-linked electric vehicle operations—the recently released audit flash report from the Office of the Public Auditor (OPA) serves as a damning coda. Dated January 14, 2026, this document lays bare the CNMI government's chronic failures in fiscal accountability, particularly in managing over half a billion dollars in federal expenditures. It underscores a territory that has repeatedly flouted U.S. regulations under the Uniform Guidance (2 CFR Part 200), designed to ensure transparency and proper stewardship of taxpayer-funded awards.
The report details staggering delays in single audit submissions for fiscal years ending September 30, across the CNMI government and its autonomous agencies. For FY 2022, the CNMI government itself—responsible for a whopping $527.7 million in federal spending—submitted its audit report on October 15, 2025, a jaw-dropping 845 days late from the June 30, 2023, deadline.
This non-compliance echoes through other entities: the Public School System (PSS) was 241 days overdue for its $106.1 million in expenditures; the Commonwealth Healthcare Corporation (CHCC) lagged an astonishing 1,414 days for FY 2019's $17 million; and the Commonwealth Utilities Corporation (CUC) hit 527 days late for FY 2023's $14.4 million. Only the Northern Marianas College (NMC) managed an on-time submission for FY 2024's $25.7 million.
These delays violate 2 CFR §§ 200.512(a) and (b), which mandate submission of audit packages—including financial statements, schedules of federal expenditures, and corrective action plans—within nine months of the fiscal year-end to the Federal Audit Clearinghouse (FAC).
The report cross-references a U.S. Department of the Interior Inspector General's Inspection Report No. 2025-FIN-005, which lambasts insular areas like the CNMI for consistent failures in audit compliance over two decades, noting that such lapses hinder federal oversight and expose funds to misuse.
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About the Author
Zaji “Persona Non Grata” Zajradhara is a staunch advocate for American workers and indigenous rights in the CNMI. Labeled a “persona non grata” by the CNMI government for his relentless pursuit of justice and his outspoken criticism of corruption and foreign influence, Zajradhara has become a symbol of resistance against the forces seeking to undermine American sovereignty in the islands.
As An Unemployed Afro-American resident and father, Zajradhara's firsthand experience with the CNMI’s dysfunctional labor market, its rigged political system, and the exploitation of vulnerable communities has fueled his activism. He has filed numerous legal claims against companies, including Tan Holdings, for violating labor laws and discriminating against American workers.
His unwavering commitment to exposing the truth, challenging the status quo, and demanding accountability has made him a thorn in the side of the CNMI establishment and a target of their efforts to silence him. However, Zajradhara remains undeterred, determined to fight for the rights of American workers and to protect the CNMI from the grip of foreign influence.
