Saipan Tribune

Monday, May 20, 2013

Friday, January 04, 2013

Fitial expects OAG to tell SDLLC that deal is void

The Fitial administration expects the Office of the Attorney General to tell the Delaware-based Saipan Development LLC about the governor's concurrence with the attorney general's opinion that the $190.8-million power purchase agreement is void and unenforceable.

Press secretary Angel A. Demapan told Saipan Tribune yesterday that the Fitial administration expects the OAG to communicate Attorney General Joey P. San Nicolas' legal opinion to Saipan Development LLC that the power purchase agreement is void.

“Now the administration will fully examine the need to address the long-term power needs of the Commonwealth,” Demapan added.

He said there is no argument that the current power generation system is costly and is reaching the end of its life expectancy.

“It is still important for the Commonwealth to find alternatives in pursuit of lowering utility costs and attracting new industries to the CNMI,” he added.

Demapan disclosed Wednesday that Fitial now agrees that the power purchase agreement is void and unenforceable in the wake of San Nicolas' opinion on the controversial deal.

In his opinion, San Nicolas said that Fitial is not liable for any cause of action related to his signing of the power purchase agreement with Saipan Development LLC as he merely relied on the certification of then attorney general Edward T. Buckingham that the agreement was proper as to form and capacity.

San Nicolas, however, determined that Fitial did not have the authority, pursuant to Executive Order 2012-17, to enter into the power purchase agreement with Saipan Development LLC.