Lang: CUC officials ignorant, incompetent

Former Gov. Froilan C. Tenorio yesterday unleashed fresh attacks against officials of the Commonwealth Utilities Corporation, accusing them as incompetent and ignorant of the laws in administering operations of the government-owned company.

Because of potential illegal actions by its board, he sought an investigation by the Attorney General’s Office into their policy, practices and performance on the heels of critical decisions approved by directors in recent weeks.

In a four-page letter to CUC Board Chair Jesus T. Guerrero, Mr. Tenorio said he was disappointed and alarmed “at the ignorance” of some of the members who tangled with him during a recent board meeting over its policies.

“After reviewing the statute, I must ask you to suspend further activities of the CUC board until the members are well-versed with their duties and responsibilities. The board should not be making major decisions at this time,” he wrote.

Mr. Guerrero or any board member could not be reached for comment on his accusations, which came a week after the former governor attended a board meeting last April 27 and criticized what he alleged as discrimination in implementing CUC’s tough disconnection policy in light of the government’s debt of over $11 million incurred from overdue electricity bills.

He said they should not cut off services to other customers who, like the government, have been behind in their payment if public offices are exempted from such regulation.

Likewise, Mr. Tenorio claimed CUC’s policies are not consistent, citing for instance the fact it granted special power rate to the Voice of America relay station in Tinian, while rejecting the same request by the Tinian Dynasty Hotel and Casino.

This is not part of the statute that created the utility corporation under an agreement with the Department of the Interior, according to him, and regulations like granting discounted power rate are illegal.

Lower rate

Renewing his appeal to provide assistance to the Dynasty, he stressed that the hotel and casino is a bigger employer than VOA and provides the largest revenues to the Tinian municipality than any other establishment on the island.

“The board set the precedent on VOA,” Mr. Tenorio told the CUC chair, “you don’t have any legitimate excuses to deny Tinian Dynasty the same consideration.”

The board has thumbed down the hotel’s request several times in the past two years, noting that it would mean favoring one customer over other commercial establishments that pay its rate of 16 cents per kilowatt-hour and that CUC stands to lose potential revenues.

Moreover, special rates are only granted to federal agencies, charity organizations, religious groups and schools that are non-profit in nature.

But Mr. Tenorio pointed out that since CUC plans to expand the current 10-megawatt plant into a 30-MW capacity, it would be better to make use of the available power by giving the lower rate of 12 cents to the Dynasty, instead of keeping them idle.

Taking potshot at CUC board director Zania M. Fleming who is from Tinian, he said her opposition against the casino’s request is a bane to potential investors in the island municipality.

Mr. Tenorio again prodded the board to face its fiduciary duty by demanding payment from the government for what it owes.

“We all know that Governor [Pedro P.] Tenorio is not about to oust any of you from the board because he is the beneficiary of your gross neglect. But there are other governors after him. There are the issues of liability of accountability to be considered,” he said.

The Teno administration earlier has agreed to make a monthly payment of at least $1.3 million to CUC in order to reduce the debt which has mounted since last year due to the financial difficulties confronting the CNMI.