Joint panel formed to probe hemodialysis project

The House of Representatives and the Senate have formed a joint panel to look into the alleged mismanagement of funds related to the ongoing construction of a hemodialysis center on Saipan.

Sen. President Joaquin G. Adriano appointed three members to the panel: senators Joseph Mendiola, Paterno Hocog, and minority leader Pete P. Reyes.

In the House, Speaker Benigno R. Fitial named representatives Crispin Ogo, Timothy Villagomez, and Clyde Norita.

In a letter to Fitial, Adriano said he “wholeheartedly approves” the conduct of a joint investigation to address the “failed” project.

“As you correctly mentioned, millions of dollars in precious taxpayers funds appear to have been misspent on the project so far and more money [would be spent] with the hopes of completing the project,” he said.

Both houses have approved the passage of a bill identifying an additional $5.8 million funding for the project.

The project, being handled by the Department of Public Health and Department of Public Works, originally received an $11.8-million funding. Of the original amount, DPH awarded a $5.6-million contract to AIC Marianas to construct the facility.

Other funds were spent for architectural and engineering design, which had to be done twice.

The DPH originally hired Leo Daly to do the design for nearly $800,000. But this was reportedly faulty, prompting the DPH to award again another design contract amounting to nearly $900,000 to Tanaguchi Ruth.

DPH and DPW officials said the original funds had been depleted due to several change orders stemming from a bad design.

Meantime, Sen. Mendiola, chairman of the Senate Committee on Fiscal Affairs, said that the Senate amended the bill appropriating $5.8 million to require the contractor to secure an additional performance bond.

“Since the funding ballooned to almost $17 million, we require that the contractor to buy additional bond to make sure that it covers the entire contract amount,” he said.

A performance bond guarantees that the project would be completed in case the contractor defaults.

The Senate-approved bill was referred back to the House of Representatives for review.

The measure, House Bill 14-258, aims to shift $5.8 million from the pending Kagman wastewater project to the completion of the Public Health and Hemodialysis project. The bill also transfers $2 million from the Kagman III road pavement from Dandan sewer project or the expansion of the Agingan sewer treatment plant.

The bill specifies that the executive branch shall reserve $5.8 million from the 702 funding for FY 2007 to reinstate the amount reprogrammed from the Kagman wastewater project and $5 million—$3 million in FY 2007 and $2 million in FY 2008—for the completion of the Dandan sewer project.