New hemodialysis funding passes both chambers

Both chambers of the Legislature finally gave the thumbs-up to the $5.8 million in additional funding being requested for the completion of the Public Health and Hemodialysis Center on Saipan.

The House of Representatives approved Wednesday the Senate-amended House Bill 14-258, which authorizes the reprogramming of $5.8 million for the project.

The bill is now up for the governor’s final approval.

Gov. Juan N. Babauta earlier asked the Legislature to reprogram the needed funds, following findings that the project’s original $11 million-plus funding had been depleted, mostly due to change orders.

“They [House members] approved it mainly because they want it [the project] completed on time,” said House leadership spokesman Charles Reyes Jr.

The House said that, despite the large amount that has already been allocated for the project, it is only about 20- to 40-percent complete. The project is being handled by the Department of Public Health and the Department of Public Works.

Both chambers recently formed a joint panel to investigate the alleged mismanagement of the project’s funds. The probe extends to contractors, as well as the Attorney General’s Office, which approved the change orders.

Besides the Legislature, the U.S. Army Corps of Engineers has also begun its audit of the project, as requested by the Executive Branch.

Meantime, the Legislature had formally asked the Office of the Inspector General, Department of the Interior to review the federally funded project.

The Legislature had appropriated $11.8 million in capital improvement project funds for the project. Of the amount, the DPH awarded a $5.6 million contract to AIC Marianas to construct the facility. Due to an alleged faulty design, though, the contractor had repeatedly asked for change orders, totaling over $4 million. About $2 million had been spent for two architectural and engineering designs. Other expenses reportedly went to administrative activities.

House Vice Speaker Timothy Villagomez, who heads the House investigating panel, has already asked DPW Secretary John Reyes to submit all documents, contracts, correspondences, purchase orders, change orders, and any other information relating to the project implementation by Dec. 3, 2004.

“After the committee has a chance to review all documents, it will hold an oversight hearing to determine whether or not any person or entity should be held accountable for the project’s budget shortfall and the next proper course of action. This project is of great concern to the Legislature and we expect your full cooperation,” he said.

Meantime, the amended bill requires the contractor to secure an additional performance bond in view of the new appropriation.

The measure would shift $5.8 million from the pending Kagman wastewater project for the hemodialysis project, and $2 million from the Dandan sewer project for the paving of the Kagman III road. The reprogrammed money will be returned beginning FY2007.