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Reprogramming bill to help CUC power plant signed
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Posted on Oct 22 2006
Acting Gov. Timothy P. Villagomez signed on Thursday a bill that gives the Executive Branch unlimited power to reprogram certain federal funds to the Commonwealth Utilities Corp.
House Bill 15-157, authored by Vice Speaker Justo S. Quitugua, is now Public Law 15-34.
Gov. Benigno R. Fitial last month announced the enactment of H.B. 15-157, which he had described as unnecessary. But documents show that the measure was not signed until Oct. 19, 2006.
The new law allows the governor to use unspent federal funds from infrastructure projects at Saipan’s power plant. The reprogramming authority applies to funds from all completed capital improvement projects prior to 2004.
“All reprogrammed funds shall be used for the improvement and rehabilitation of the power plant engines under the control and management of the Commonwealth Utilities Corp.,” reads a portion of the new law.
The only condition is that, in the case of Rota and Tinian CIP funds, the reprogramming should have the approval of the respective mayor.
Fitial had said earlier that the governor had the authority to reprogram funds from close out projects even without this law. “That’s standard operating procedure for all CIPs,” he had said.
The Office of the Public Auditor, which submitted comments on the bill, has urged the administration to reconcile its federal fund records before reprogramming any funds remaining on completed or closed capital improvement projects.
This recommendation came in light of a recent OPA audit, which showed that the Legislature over-appropriated the $60-million bond floated by the Commonwealth Development Authority in 2000.
The over-appropriation, amounting to $1.5 million, occurred because the Legislature did not have adequate procedures to determine an accurate balance of the $60-million bond proceeds and interest income when it passed 10 CIP appropriation acts from 2000 to 2004, OPA found.
