CUC told to submit ‘emergency’ contracts

The Office of the Attorney General has asked the Commonwealth Utilities Corp. to disclose all procurement transactions it made from May 19—the declaration of a state of emergency—up to the present for compliance review.

In a June 1 letter to CUC executive director Lorraine A. Babauta, Attorney General Pamela Brown asked the CUC official to provide her “with copies of any written correspondence regarding consulting contracts from May 19 to now” and “all procurement documents issued after May 19.”

“Hopefully, the majority of these procurement documents comply with the Commonwealth procurement regulations. My office will immediately commence a review of each for compliance therewith,” said Brown.

This came after CUC’s Babauta approved on May 27 two purchase orders for the services of former senator Ramon S. Guerrero and power plant electrical engineer Roger Kitchingham.

Under the agreements, Guerrero, who earlier signed a $50,000 consultancy contract with the Governor’s Office for the La Fiesta complex, would be paid $7,000 a month for three months and Kitchingham would be paid $10,000 a month for two months.

Guerrero is supposedly tasked to oversee the mechanical and electrical repair of Power Plant II in Lower Base and help in CUC’s privatization program, among others.

Kitchingham, according to Guerrero, would “assist in major calibration of all electrical system in Power Plant II.”

In her letter, Brown noted that CUC’s Babauta lacked the authority to approve the purchase orders, given the state of emergency. Brown cited that the emergency declaration suspended all CUC regulations, including procurement regulations.

Although a discussion regarding Guerrero’s contract did take place with Gov. Juan N. Babauta, who has assumed control over CUC since May 19, Brown noted that “there is no written directive or delegation of authority regarding this procurement.”

“Accordingly, you currently lack legal authority to issue purchase orders or any other procurement instruments under the suspended CUC regulations,” Brown told CUC’s Babauta.

The AG official then directed CUC “to suspend any payments for such services until such time as this matter is completely resolved.”

Until then, she said, all purchase orders must be reviewed by governor legal counsel Steve Newman, and approved by the Attorney General’s Office.