Opposition fears abuse of governor’s emergency powers

The political opposition fears of possible abuse of authority by the governor during the current state of emergency, citing the lack of check and balance in executing plans.

The camp of House Speaker Benigno R. Fitial cited the recent signing of consultancy contracts with former senator Ramon “Kumoi” Guerrero and California-based electrical engineer Roger Kitchingham.

The CUC, which is under the direct control of Gov. Juan N. Babauta, approved a $21,000 purchase order for Guerrero and a $20,000 agreement for Kitchingham. The two are tasked to repair the Commonwealth Utilities Corp.’s Power Plant II.

Guerrero had already entered into a separate $50,000 consultancy contract with the Governor’s Office a couple of months ago for a different project.

“There’s a seeming lack of internal controls, given the governor’s wide discretionary authority under the emergency powers. There may be some potential for abuse because there’s not any checks and balances. There’s no interaction between management and the CUC board of directors. Basically, it’s at the whim of…the governor,” said Fitial spokesman Charles Reyes Jr.

Further, Reyes warned that the emergency may be used to advance political goals since it is an election year.
“Political decisions could be made during such circumstances. So the question is whether or not the hiring of Kumoi, who already has a $50,000 contract for La Fiesta, is a political maneuver or a legitimate operational need for CUC. To what extent is it politically motivated and to what extent is it actually a legitimate need? So with the governor assuming full authority, the potential for abuse for political decisions is certainly there,” he said.

Guerrero was associated with Fitial, who is running against Babauta in this year’s gubernatorial race.

“We need to watch carefully to make sure that what is actually done is in the best interest of taxpayers and public utilities, and not patronage or political maneuvering using taxpayers funds,” said Reyes.

The Governor’s Office, meantime, cited yesterday that Guerrero and Kitchingham’s purchase orders were not signed by Babauta.

CUC documents showed that the contracts were approved by CUC executive director Lorraine A. Babauta.

In his letter to CUC, Guerrero said his hiring and that of Kitchingham was discussed early on with Gov. Babauta.

Attorney General Pamela Brown said that CUC’s Babauta had no written directive to approve Guerrero’s contract. Brown talked with Lorraine Babauta on the matter yesterday.

At the same time, Brown issued a letter addressed to Lorraine Babauta, clarifying that she has currently no direct authority to approve such contracts.

“You…stated that discussions with the governor regarding procuring consulting services from Ramon S. Guerrero did take place but there is no written directive or delegation of authority regarding this procurement,” said Brown.

The AG further reminded Lorraine Babauta that the declaration of emergency on May 19, “suspended all CUC regulations, including procurement regulations.”

“To date the governor has not reinstated any of these regulations,” said Brown.

She said the only applicable procurement regulations for securing goods and services right now are the CNMI Procurement Regulations, which do not permit securing any goods or services in excess of $2,500 unless certain conditions are met.

“It is clear that none of the applicable conditions can be met by CUC in the present instance,” said Brown.

Accordingly, the AG directed CUC’s Babauta “to suspend any payments for such services until such time as this matter is completely resolved.”

Until then, she said, all purchase orders must be reviewed by governor legal counsel Steve Newman, and approved by the Attorney General’s Office.

Lorraine Babauta approved on May 27 an order paying Guerrero $7,000 a month for three months for his services in the repair of Power Plant II.

At the same time, Lorraine Babauta approved a $10,000 monthly pay for two months for Kitchingham, who will work with Guerrero in the power plant.