Senate to do full-scale probe on dialysis fiasco

The CNMI Legislature is poised to conduct a full-scale probe into what it describes as the “hemodialysis project fiasco” of the Department of Public Health.

Senate minority leader Pete P. Reyes said a full-swing investigation will have to be made, although the Senate is ready to pass a bill appropriating additional funding for the project.

“We want to pass the bill because this is for a good cause. We also feel that we should not penalize the end users, the community. But we’d make sure that the players—those responsible for the mess—will be held accountable so we’ll go ahead with the investigation,” said Reyes.

He said that the House of Representatives, which earlier passed the bill identifying $5.8 million for the hemodialysis project, “is not over yet with the probe.”

House leadership spokesman Charles Reyes Jr. confirmed that the investigation will continue.

The Senate had called DPH and Department of Public Works officials Thursday to inquire on the fund shortage.

Meantime, Sen. Reyes said that he will soon file a resolution asking the U.S. Inspector General to audit the project.

“It has jurisdiction over this because this project involves federal funds. It appears that there’s a lot of mismanagement, misappropriation, and even malfeasance on the part of participants,” he said.

Reyes said Senate members decided not to hold a session last Thursday to act on the bill because it still wants to hear from the Attorney General’s Office.

He said the Senate had asked the AGO three times to attend the meeting last week but it declined to show up.

“The AGO refused to come the first time. They told our legal counsel that the invitation was so sudden and they’re not prepared. The second time, we asked for the one assigned for procurement and supply, and we’re told he was not authorized to come to the Senate. The third time, we invited the assistant attorney general for public works, but we’re informed that the acting AG instructed all AAGs not to talk with our legal counsel,” Reyes said.

He said the Senate views the AGO’s actions as “disrespectful and uncooperative.”

“While the administration is pushing for the immediate reprogramming, it seems that the AGO does not treat it as urgent so the [Senate] president didn’t call for a session,” he said.

Among others, he said the Senate would ask the AGO if it approved the change orders even if these already exceeded the original funding level.

“We’ve got lots of questions but basically we want to know who’s responsible for this fiasco,” said Reyes.

The House earlier passed House Bill 14-258, which aims to reprogram $5.8 million for the completion of the Public Health and Hemodialysis project and $2 million for the Kagman III road pavement.

The hemodialysis funding would be taken from “idle” Kagman wastewater project while the road paving funds would come from the Dandan sewer project or the expansion of the Agingan sewer treatment plant.

The bill said that the Kagman wastewater funds, which include federal grants, may likely remain unused until 2006 due to design changes and permitting delays.

The Babauta administration earlier asked the Legislature to approve the reprogramming of funds for the hemodialysis project, citing that the original appropriation has been depleted with a remaining balance of only $857,000.

The hemodialysis project was originally given $11 million from 702 funds.

DPW and DPH said the fund’s depletion was caused by several change orders “to correct certain design defects and to accommodate unforeseen circumstances during construction.”

The hemodialysis project was initially designed by Leo Daly amounting to about $800,000 but due to unacceptable work, the government entered into a redesign project with Tanaguchi Ruth for nearly $900,000.

The government also awarded $5.6 million to AIC Marianas to construct the facility. The government said this amount does not cover the construction of other important features such as parking area and water system.