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Create privatization task force—Deleon Guerrero
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Posted on Aug 11 2004
If privatization is seen as the way to improve efficiency in the delivery of certain services in the CNMI, then the administration should create a commission or a task force that would look at areas or functions of the government that need to be privatized, according to Saipan Rep. Joseph Deleon Guerrero.
“This panel would study what areas ought to be privatized. Set a criteria, assess, make a list of agencies and functions that are conducive for privatization, looking at all aspects such as cost-effectiveness and benefits,” said Guerrero.
He said that among the areas that the government could give to the private sector is the collection of hospital and customs bills.
The lawmaker made the suggestion even as he expressed concerns over the ongoing privatization efforts for the Commonwealth Utilities Corp.’s power generation plants.
“Right now, CUC’s only revenue-generating utility is the power generation. It’s subsidizing all other utilities. If you privatize that, who’s going to subsidize other utilities like water, sewer, power distribution and Rota operations? Would this mean raising the rates of the other utilities?” he asked.
He said the commission’s work is “a step before” an agency could carry out a privatization plan.
“What happened with CUC is that it first approved the plan and later go for the process,” he said.
Deleon Guerrero echoed other lawmaker’s sentiment over the lack of consultation by CUC on the privatization program.
“I hope they come and present to us their plan,” he said.
Rep. Arnold Palacios also noted the “lack of real dialogue” with CUC on the privatization program.
“It’s a very critical issue and there has not been a real dialogue. They don’t tell you in public what’s really happening behind closed door meetings,” he said.
Earlier, the House Committee on Public Utilities Transportation and Communications, chaired by Vice Speaker Tim Villagomez, a former CUC executive director, summoned CUC officials over several issues, including the power privatization.
So far, the committee has not given an update on the subject.
