House summons Kumoi on privatization

Citing lack of transparency, the House Committee on Public Utilities, Transportation, and Communications has subpoenaed governor’s consultant Ramon “Kumoi” Guerrero for questioning over the planned power privatization.

“We need information on the privatization issue. We need to see his [Guerrero’s] report. We requested a copy of the report from Governor’s Office but we have not received a report yet so we’re going directly to the source,” said House leadership spokesman Charles Reyes Jr. yesterday.

PUTC chair Timothy P. Villagomez asked Guerrero to show up at the House chamber on Aug. 1 at 10am.

Guerrero confirmed receiving the subpoena in an interview with KMCV and told the station that he would appear before the Senate panel on the scheduled date.

Guerrero was recently hired by the administration to fix Power Plant 2 in Lower Base. The administration said that three of the six-engine power plant are now operating, following Guerrero’s entry.

Power Plant 2 serves as the CUC’s backup power plant, in case engines at the adjacent main power plant, Power Plant 1, break down.

Under the CUC’s privatization program, Power Plant 1 would be overhauled, maintained, and operated by a winning proposer to ensure efficiency. CUC intends to award the contract in less than two months.

Reyes said the House leadership is “very concerned about the prospects for CUC privatization, particularly regarding the possibility of a significant 30 to 40 percent or more rate increases.”

Press secretary Peter A. Callaghan, meantime, said that he is not personally aware of Guerrero’s report. Putting this aside, he said that privatization discussions have been going on for quite a long time.

“People [who] say that we’re rushing into privatization just don’t know the facts,” said Callaghan, noting that the Request for Proposal for the privatization of Power Plant 1 went out in January.

“It’s been a seven-month process. The whole investigation into privatization has been almost three years. So it’s been a well thought-out plan and we are nearing the end of it. I don’t believe there’s any secret. I don’t think there’s anything to hide; that’s why Harris Group is out meeting with various groups and the media,” said Callaghan.

In related news, House leadership spokesman Reyes said that the administration has so far failed to communicate a detailed CUC report to the Legislature regarding Gov. Juan N. Babauta’s declaration of a state of emergency for CUC, which he said may be a “constitutional violation.”

Likewise, Reyes said that the administration has failed to present the Legislature a concrete and comprehensive plan on the future of CUC operations.

Babauta has emergency control of CUC following his May 19 declaration of state of emergency.

“The governor has not properly consulted, cooperated, and collaborated with the Legislature to address CUC’s problems. The Legislature lacks vital information,” said Reyes, noting that the CUC board of directors used to update the PUTC on a regular basis.

He said the House leadership is very concerned about any debt the governor might incur on behalf of CUC without legislative approval.

Although the House leadership fully supports the governor’s legal reprogramming of public funds to CUC, “it is gravely alarmed by the possible illegal diversion of funds for CUC.”