CUC to submit fiscal report to PUTC today

The Commonwealth Utilities Corporation will submit to the Legislature today a complete disclosure report on its financial conditions, including expenses and revenues in the past years.

House Committee on Public Utilities, Transportation and Communication chair Rep. Rosiky Camacho said Friday that CUC has until today to provide the Legislature with its complete financial report.

Mr. Camacho said the fiscal report would give the Legislature a clearer picture of the corporation’s finances. It is also anticipated to shed light on the alleged violation of fiduciary responsibilities of some CUC officials.

He also confirmed the Senate’s participation in the scheduled inquiry that would help clear controversies hounding CUC’s delinquent loans obtained from the Commonwealth Development Authority.

The joint inquiry is seen to expeditiously resolve problems on the $150 million unpaid loans of the utility corporation, which was tackled under House Bill 12-320.

The congressman explained that there will be no need to toss the problem to the upper chamber as the committee hearing on April 23, which will be participated in by some members of the Senate, will help resolve the case immediately.

Mr. Camacho added that all records and reports gathered by the committee will be reviewed and scrutinized to aid lawmakers come up with an air-tight decision on the case.

The Legislature is optimistic that CUC will provide both chambers a comprehensive report on the corporation’s liabilities, assets, loans and expenses, after a 30-day allowance.

The utility corporation took the brunt after the Legislature discovered its has amassed funds to afford across-the-board salary increase, anniversary increases and travel tabs accorded to CUC board members.

During the initial phase of the inquiry, CDA officials warned that it will carry out measures to take over the utility agency if it continuously ignores demands to pay its $150 million debts.

CUC has until this week to come up with a plan of action to deal with its $100 million delinquent loan or it may face legal action, which could strip the current Board of Directors the power over the government-controlled power firm.

This ultimatum was issued last month in light of CUC’s apparent persistence in acknowledging demands for payment from its creditor — the Commonwealth Development Authority.

CDA Executive Director MaryLou S. Ada said the mid-April deadline was part of the conditions set by the government’s lending arm in desperate attempts to collect from CUC over $100 million in total loans.

CDA is ready to take legal action against CUC if the public power corporation failed to come up with a concrete debt restructuring plan by middle of the month.

The Special Representatives Agreement reached between CDA and CUC gives the government-controlled lending agency the power to investigate the utility corporation’s financial management.

The same agreement allows CDA to remove officials who cannot properly operate the utility corporation and relegate the responsibility to CDA’s appointees, according to a legal opinion earlier aired by the lending agency’s counsel Vicente Salas. (EGA)