DPW assesses CUC $6.9M for 110 alleged violations

As of June 30, 2023, the Commonwealth Utilities Corp. owes the CNMI government $6.9 million in outstanding civil fees and civil penalties assessed by the Department of Public Works for about 110 alleged violations that are mainly related to unpermitted road cutting work.

This was learned based a more-than-six-inch thick sheaf of documents that George C. Sablan, acting director for DPW Technical Services Division, sent CUC acting executive director Betty Terlaje last Friday, where he informed her about the fees and penalties totaling $6,994,000. He told her the fines and penalties are payable to the CNMI Treasury.

CUC received DPW’s letter last Wednesday.

When asked for comments yesterday, Telaje said she has had no chance yet to look at DPW’s documents.

Sablan said in his letter that, as part of their compliance review of all permitted applications on file, DPW has determined that the restoration of road cutting work of asphalt pavement has not been completed in accordance with Public Law 5-41. Sablan said these road-cutting and trenching activities on CNMI roadways were performed by CUC’s Water Division to fix emergency water leak repairs and water connection underground.

Citing DPW’s notice of violation dated Sept. 21, 2022, the acting director said these road-cutting and trenching activities were performed without required permits and permit applications.

He said a total of 110 applications have been approved after CUC was issued a notice of violation, pending restoration of asphalt pavement throughout Saipan.

Sablan cited several legal authorities that form the basis for DPW’s imposed fines.

Last April 12, DPW Secretary Ray N. Yumul issued a final notification to CUC over its alleged repeated violations of not restoring roads that it had cut up or dug up for its projects. Yumul said the violations create significant safety concerns for the public.

Last April 19, then-acting CUC executive director Dallas M. Peavey Jr. informed Yumul that they’re working to repair and replace roads that were damaged by CUC projects.

Peavey said 16% of CUC road repairs are caused by DPW cutting into and/or through CUC water and sewer piping.