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CUC allowed to mortgage public lands
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Posted on Jun 21 2005
The Marianas Public Lands Authority has turned down Gov. Juan N. Babauta’s request for the agency to deed various parcels of public land to the Commonwealth Utilities Corp.
Rather, the MPLA board of directors authorized CUC to mortgage the properties in order to raise funds for the utility firm.
Babauta, who currently controls CUC pursuant to his May 19 state of emergency declaration, had asked MPLA to convey to CUC certain public lands where utility facilities are situated.
The CUC facilities involved include the Power Plants I and II at Lower Base, Power Plant IV in Puerto Rico, and the wastewater treatment plants in Agingan and Sadog Tasi.
“I make this request pursuant to the authority vested in me as governor, including the authority set forth at Section 10 of Article III of the Commonwealth Constitution as invoked in the Declaration of State of Emergency dated May 19, 2005,” said Babauta.
In an interview yesterday, MPLA commissioner Edward Deleon Guerrero said the MPLA board did not find it necessary to deed the public lands to CUC, since the purpose of the governor’s request was simply to be enable CUC to mortgage the properties.
“The board only granted CUC an authorization to mortgage; we did not give the property to CUC. The purpose of us giving the property to CUC is for them to be able to use it as a collateral. But we can allow them to do this without deeding the entire property to CUC. We can simply authorize them to mortgage the property and it will accomplish the same result,” said Deleon Guerrero.
In a separate interview, CUC board vice chair Herman P. Sablan said the governor’s purpose was not merely to mortgage the properties, but to help CUC appraise the value of its assets.
“It’s just proper for CUC to be given title rights to the properties it is building structures on. Right now, CUC doesn’t know its true value as far as assets are concerned. It would be an ideal situation if these properties are assigned to CUC,” said Sablan.
