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Feds asked to review CUC-CDA debt write-off bill
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Posted on Mar 24 2005
The Commonwealth Utilities Corp. has asked the federal government to review a recently defeated bill that would write off CUC’s longstanding $45-million loan from the Commonwealth Development Authority.
CUC chair Francisco Q. Guerrero wrote the March 22 letter to U.S. Interior deputy assistant secretary David Cohen in an effort to dispel concerns that the federal government might deem the debt waiver improper.
“It is our understanding that one of the reasons of [the bill’s] defeat was concern that the Office of Insular Affairs might consider such a waiver improper and [that the bill might] have a negative impact on OIA’s relationship with the CNMI,” Guerrero said. “Therefore, this letter is to respectfully ask for your review of the matter and your response as to any concerns OIA may have over the proposed waiver of the repayment obligation.”
Introduced by Rep. Timothy P. Villagomez, House Bill 14-285 seeks to waive any repayment of loan obligations owed by CUC to CDA. The write-off would allow CUC to obtain financing for utility projects.
The bill however was narrowly defeated on March 17, with eight House members voting “no,” and seven “yes,” and two abstaining from the vote.
House minority leader Arnold I. Palacios, one of the two representatives who abstained, said the waiver might impact the CNMI government’s relationship with the federal government.
The money loaned out to CUC was part of a $140-million federal direct grant assistance received by the CNMI and administered by CDA for infrastructure development in the Commonwealth.
Guerrero told Cohen, however, that CUC would be “more than happy to answer any questions or supply any information needed for [Cohen’s] review.”
