CUC’s Babauta on way out

A new executive director from off-island will take over the Commonwealth Utilities Corp. beginning next month, in an effort to end the utility’s longstanding financial and environmental compliance problems.

Acting CUC chair Herman P. Sablan said yesterday that CUC executive director Lorraine Babauta is being replaced by someone who is more knowledgeable in the workings of the international oil industry and have closer connections with federal agencies such as the U.S. Department of the Interior and the U.S. Environmental Protection Agency.

Sablan refused to divulge the name of the incoming official, pending the CUC board’s special meeting scheduled for 3pm today. He said the board members are expected to make a decision on Babauta’s employment status at the meeting.

However, Vice Speaker Timothy P. Villagomez disclosed that CUC is planning to hire Abe Malea, who is the former executive director of American Samoa Power Authority.

Babauta is currently off-island and could not be reached for comments.

In an interview yesterday, Sablan maintained that the plan to replace Babauta had nothing to do with her performance.

“The bottom line is CUC is in a crisis and it has nothing to do with the management. This crisis is caused by the economic situation. We need somebody who is more well-versed with the technical side of the international oil industry. We need somebody who has close connections with EPA and a strong relationship with the Department of the Interior,” Sablan said.

He added that CUC had discussed the hiring issue with the Babauta administration. The action also had the support of the Interior Department, he said.

However, Villagomez, who is chair of the House Committee on Utilities, Transportation, and Communications, said it was Gov. Babauta who had arranged for Lorraine Babauta’s ouster, in collaboration with the Department of the Interior and “certain” selected CUC board members.

When reached last night, Gov. Babauta declined to comment on the issue.

Sablan also said that one of the reasons the CUC board decided to hire a new executive director was Babauta’s planned retirement six months from now.

“But if she decides to stay on after six months, I’m sure the board will be open to negotiation,” he said.

CUC is looking at having the new management by the first week of May, but this still depends on the official’s arrival on island, Sablan said.

“Lorraine will be helping the new executive director during the transition,” he added.

The utility firm is currently faced with major problems. On top of the list are CUC’s outstanding accounts with Mobil and the threat of $37,500 in daily environmental fines over the Agingan wastewater treatment plant.