CHCC bares priority expenses for $3M line of credit with MPLT
The Commonwealth Healthcare Corp. has identified four critical areas where it plans to use the $3 million loan it expects to get from the Marianas Public Land Trust.
Corporation CEO Esther L. Muña disclosed yesterday that $2 million will be used to pay vendors, payroll costs of personnel, and other critical needs of the Commonwealth Health Center, which the corporation runs.
The agency also wants to procure a dedicated financial system by purchasing AS-400. Muna wants to tap $600,000 for this financial system. She disclosed that the financial system cost is budgeted at $800,000. However, the corporation was able to secure a $200,000 guaranteed fund from one of the CHCC federal grants, as approved by the U.S. Centers for Disease Control.
Another $300,000 will be used to pay for hospital utilities. The CHCC has an ongoing issue with the Commonwealth Utilities Corp. over longstanding arrears, reportedly now at $11 million.
Muña said the salary of the chief financial officer—budgeted at $100,000, including per annum salary of $90,000 plus other benefits—would also be sourced from the MPLT loan. As part of the conditions of the line of credit, the first drawdown must include the CFO salary.
MPLT approved this line of credit in April this year after the corporation paid in full the principal amount it earlier borrowed from the land trust. CHCC’s new line of credit is good from April 14, 2014 through April 13, 2015. The loan is assigned a 7-percent per annum interest.
The new loan comes with a number of conditions that include, among others, assurances that the corporation will hire a permanent CFO.
The corporation made a drawdown request last week but the MPLT board deferred action on it pending a meeting with the new CFO of the hospital, Jack Taisague, who was hired only on June 2.
