CDA weathers pressures from legislators

The Commonwealth Development Authority said it will not withdraw the multi-million lawsuit it filed against the Commonwealth Utilities Corporation.

CDA stood pat on its decision despite calls made by lawmakers during a public hearing yesterday.

During the second phase of the public hearing on CUC’s $150 million debt and House Bill 12-320, CDA officials reiterated plans to pursue the court case to recover the capital and interest loaned out to the power corporation.

CDA legal counsel Vicente Salas said regardless of the request made by legislators, the government-controlled lending firm will let the court process takes its natural course.

CUC lawyers are expected to respond to the complaint filed before the court. They said the CUC is expected to file its reply in the next 20 days.

CUC legal counsel Brien Sers Nicholas and CUC Executive Director Timothy P. Villagomez said both of them are yet to see the complaint filed against them as of yesterday afternoon.

Mr. Sers Nicholas refused to give comment on the case filed against the utility corporation.

On the other hand, Mr. Salas explained that contrary to the request made by Rep. Dino Jones, there is no way CDA can backtrack from its original stand.

He said the Legislature must understand that it would be impossible for CDA to withdraw the case especially that it has been officially lodged before the Superior Court.

“If we are going to do that, the court will ask us why?,” said the legal counsel.

During the public hearing, lawmakers urged the two government agencies to settle the case between them and not to muddle the issue by bringing it to the media. Mr. Jones said the CNMI will be severely affected in terms of investments because of the lawsuit.

“The lawsuit must be withdrawn in the next two weeks, so as not to tarnish the image of the CNMI,” said the lawmaker.

Lawmakers even asked media practitioners to refrain from following up the case and urged House Committee on Public Utilities, Transportation and Communication Chair Rosiky Camacho to instead hold an executive session.

Legislators also asked the committee to invite Commonwealth Ports Authority, Public School System, and other recipients of Capital Improvement Project funds.

This way, the legislators said all other issues will be looked into and find out whether only CUC failed to repay its loan from CDA.

CDA Board Chair Juan S. Tenorio said the concern does not end on the outstanding loan of the utility corporation but also include other fiduciary responsibilities.

“It is not only the loan, the excessive travel tabs, across the board salary increases, and being over staffed. For the last 12 years, not even a penny were forwarded to CDA,” said the chairman.

The lending firm maintained that under the Special Representatives Agreement, CDA can take control of the management operation of the utility company to correct its fiduciary irresponsibility.(EGA)