Gov’t, CUC still at loggerheads over unpaid bills

More than a month since opening talks to hammer out a deal on the government’s mounting utility debt, the Commonwealth Utilities Corp. and the Department of Finance have yet to reach settlement on disputed billings.

But CUC Board Chair Jesus T. Guerrero expressed optimism that an agreement could be forged soon amid efforts by both parties to reconcile the records.

“We’re still trying to work out our differences [with] the ones they are disputing,” he told in an interview.

Utility officials have acknowledged the “inaccuracies,” although they have not specified the questionable billings.

Mr. Guerrero, however, did not say whether the $12.2 million unpaid billings to CUC by the government would be cut once the figures are cleared or when the settlement would come.

“We’re trying to put those things together because what the government is [claiming], we are also seeing [accounts] that we haven’t charged the government,” said the chairman.

Last month, the board of the government-owned utility corporation instructed CUC Executive Director Timothy P. Villagomez to meet with administration officials, particularly Finance Sec. Lucy DLG. Nielsen, following its failure to collect payment for the debt.

The amount represented arrears and outstanding accounts from as far back as late 1997 at the onset of the economic crisis that has continues to aggravate the CNMI’s financial woes.

Amid threat of disconnection of utility services to public offices by the board, Gov. Pedro P. Tenorio stepped in to avert such situation, prompting finance officials to scrutinize the government accounts with CUC.

Mike Sablan, the governor’s chief finance and budget advisor, disclosed early this month the DOF was ready to pay about $1.15 million for utility billings covering a two-month period, adding the Tenorio administration has been paying between $800,000 to $900,000 to cover its utility expenditures.

While CUC is still earning profit despite rising fuel costs, Mr. Guerrero emphasized the government payment is necessary to prop up its cash reserves.

“You have to understand that the government account helps us alleviate [our need for] the fuel purchases and our supplies,” he explained. “Without that, it is really going to hurt CUC.”

The board has previously offered a payment scheme in which the government would drastically cut its debt by half for the first four months before accepting the administration’s proposal of $250,000 per quarter payment.

While the governor has repeatedly made pledges to meet the obligation, his administration has not committed to a dollar amount because of the continuous financial difficulties confronting the CNMI.

The government debt, which has climbed since late 1997, has been a major problem plaguing CUC for the past few months, especially in light of its dwindling revenues and rising fuel costs.