CPA to sue delinquent vendors
The Commonwealth Ports Authority warned yesterday that non-paying vendors of the airport and seaport divisions will soon be facing lawsuits. The agency has already instructed its lawyers to begin legal proceedings against these vendors due to mounting uncollected receivables.
In a report submitted Friday to the CPA board of directors, Deputy Director Reno Celis told members that the CPA Airport Division failed to collect some $580,578 from various vendors in the last 120 days, while the Seaport Division recorded $1.4 million worth of receivables under the same period.
The Airport and Seaport Divisions’ over 120-days account receivables amount to 59 percent and 92 percent of all the money owed by vendors as of April 30, 2004.
“We have notified our legal counsel about these accounts that are over 120 days. These are accounts that all efforts have been exhausted and yet remain unpaid. We have no other option but to file legal actions against them,” said executive director Carlos H. Salas.
For the airport division, the CPA is trying to collect $238,924 from vendors with less than 30 days grace period; $55,563 from vendors whose arrears are 30 to 60 days outstanding; $72,574 that are 60 to 90 days outstanding, and $40,839 that are already 90 to 120 days outstanding.
All in all, the CPA airport division is trying to collect $988,477 from various vendors that fall under the six categories. It is, however, those with arrears that are 120 days or more that would soon be facing lawsuits.
Compared with the April 30, 2003 report, this year’s account receivables—$988,477—is 18 percent lower than the $1.1 million recorded last year.
For the seaport division, CPA is trying to collect $98,436 that are less than 30 days owed; $8,272 that are 30 to 60 days outstanding; $8,135 from vendors who remain unpaid in the last 60 to 90 days; and $3,549 from vendors who have yet to make a payment despite lapses of expiration and within the 90 and 120 days period.
The over-120 days account receivable, which amount to $1.33 million, is a case lodged against the MV Tinian/Saipan Express due to its nonpayment of fees to CPA.
In 2002, CPA lodged a civil lawsuit against Tinian Shipping and Transportation Inc. The public corporation, through counsel S. Joshua Berger, lodged a $1.15 million suit against the troubled shipping company on grounds of nonpayment of passenger and dockage fees pursuant to a lease agreement that CPA and TSTI entered into last June 1, 1996.
In a complaint filed at the Superior Court, CPA alleged that TSTI breached the lease contract when it failed to deliver $1.15 million in past passenger fees that it owed CPA as of April 30, 2002.
According to Salas, the case has yet to be decided on and no final word has been issued on the civil case against the ferry company.
