Tebuteb slams CUC, CHCC on ‘mismanagement’

Rep. Ramon A. Tebuteb (Ind-Saipan) believes that both the Commonwealth Utilities Corp. and Commonwealth Healthcare Corp. are being “mismanaged.”

The CUC and CHCC are currently in a tug of war of some sort regarding the payment of outstanding and current obligations that CHCC owes the CUC.

Overall, it is reported that the CHCC owes CUC some $16 million. A court order has barred the CUC from “disconnecting” the CHCC.

“Is it bankruptcy or is it mismanagement?” Tebuteb said.

For the CUC, he said the utilities firm is still laden with a slew of issues and stipulated orders. Its board is also “politicizing” the situation, Tebuteb said.

One solution, he said, is that the government should “remove” the members of the board.

“The government needs to remove the board of the CUC. They (the board) are politicizing this thing. You can even look at the qualifications of these board members,” Tebuteb lamented.

He added that, “CUC is working OK with its projects, but the interference of the board” is a concern.

“I think this CUC is heading toward a receivership telephone pole” which will affect all ratepayers.

Although he did not disclose more details about the CHCC, which also has a board, Tebuteb is urging the current government to look into these political appointees.

For Sen. Sixto Igisomar (R-Saipan), the chair of the Senate Committee on Public Utilities, Transportation and Communications, a proposed deal on how the CHCC can settle its debts to the CUC is a positive development.

He said he is “highly favorable” to the agreement that is proposed for the CUC and CHCC.

“To the court, CHCC is bankrupt. How can it pay? One way is to allow CHCC to pay the $150,000 per month to the CUC,” Igisomar said.

The senator said CUC can still charge “standby” fees, while CHCC continues its program to have sustainable energy in accordance to the CNMI’e existing net metering law.

He said is it is a long-term plan, “but it is an innovative plan, if they (CUC) only agree to it.”

“I really support this agreement and I hope it moves forward,” Igisomar said, adding that he also hopes that the Attorney General’s Office approves the legal format, and the two groups can negotiate in good faith.

Payment plan

Two days ago, the CNMI’s public utility board has directed its management to work out a payment plan with the CHCC after discussions over the health corporation’s proposed monthly payment of about $150,000.

If it had been voted for, the $150,000 monthly payment would have been finalized despite the local hospital owing about $560,000 in utility bills per month.

The CHCC owes the CUC some $16 million in past due accounts. In March, a local court granted CUC right to disconnect the hospital’s “non-essential” units, which the utility has since done.

The payment plan was described in a letter from CHCC this month. The letter described CHCC’s intent to pay $150,000 a month until it got its “renewable energy” plans up and running in a year.

CUC board chair Adelina Roberto said this $150,000 was a “minimum” and that they were working on was a “draft contract.”

This draft contract is essentially a law to draft. Copies of a draft “Senate bill” legislation had been shared among the board and management since a payment plan would have to be approved by law.

The CHCC letter was requested but not made available as of press time. Roberto said it would be made public after CUC had decided on the payment plan.

CUC management will now start discussion with CHCC to work out a payment plan. CUC would like to determine exactly how much the local hospital could pay them per month.

A board member of the CHCC earlier said the hospital’s payment of $150,000 “was better than nothing.”