Govt pays CUC extra $6.4M

Amid concerns of possible illegal reprogramming, the Babauta administration has provided the Commonwealth Utilities Corp. anew with more funds, bringing the total payment so far this fiscal year to $11.4 million.

This amount is $6.4 million more than the continuing appropriation, which is $5 million.

Finance Secretary Fermin M. Atalig said in a statement yesterday that the government is paying CUC “extra” amid the soaring fuel prices, which hit a record high of $66 per barrel last week.

CUC reportedly consumes 3 million gallons of fuel a month.

He echoed the administration’s position that CUC needs money “to keep the lights on in the Commonwealth.”

“The CUC fuel surcharge to its customers is not enough to pay for the cost of fuel. So to keep the lights on…the administration has paid $11.4 million,” said Atalig.

He said this “extraordinary payments” are allowed by the Legislature in House Joint Resolution 14-36, which gives the governor 100 percent reprogramming authority over all government funds to address CUC’s woes.

The House leadership, however, has expressed great concern over a possible illegal reprogramming by the governor.

“The House leadership only supports the governor’s legal reprogramming of public funds for CUC and strongly disapproves of any illegal reprogramming of public funds,’ said House leadership spokesman Charles Reyes Jr.

Reyes said the leadership insists that Babauta adhere to the law and strictly refrain from violating it. He said the governor should submit a detailed report to the Legislature showing the sources and amount of funds “illegally diverted” to pay for CUC.

In particular, he said lawmakers in the House majority are alarmed by reports that Gov. Juan N. Babauta may have diverted money from vital healthcare services.

“Funds for CUC should be reprogrammed from non-essential sources only,” he said.

The leadership cited the $226,485 that was diverted from the CNMI Chronic Disease-Diabetes Control program and up to $553,392 that was taken from Saipan’s Ambulance fund.

“The leadership is not comfortable with the governor’s reprogramming of public funds from the DPH Children’s Health Insurance Program, the Division of Public Health Program, the Cancer Registry, the Breast and Cervical Cancer account, and the Rota and Tinian Health Centers,” Reyes said. “Ideally, the governor should work closely with the Legislature in identifying funds for CUC. The governor should develop a comprehensive and transparent reprogramming plan in consultation with the Legislature.”

Following the governor’s May 19 declaration of state of emergency, a total of $5.1 million has been reprogrammed for CUC. Babauta said this reprogramming action “is necessary to address critical fuel and maintenance issues facing the CUC.”

In a July 7 memorandum to Atalig, Babauta authorized the following reprogramming of funds for CUC Emergency Fuel Contingency Fund:

Tobacco Control Fund/Tobacco Control Revenue $940,814
CNMI State Based Tobacco Control 98,037
CNMI Chronic Disease-Diabetes Control 226,485
CNMI Cancer Registry – $67,960
Breast & Cervical Cancer – $47,398
Enforcement of Local Tobacco Regulations $29,908
Rota Health Center $ 22,500
Rota Youth Programs – $12,406
Tinian Health Center $7,872
Tinian Youth Organization $5,030
Sub-total $1,458,410

Developer’s Tax
Developer’s Tax-Saipan $26,471
San Antonio Dispensary $810
DanDan Basketball/Road Project -$25,302
Developer’s Tax-Rota $332
Rota Various Power Distribution $48,009
Developer’s Tax-Tinian $45,842
Sub-total $146,766

Active Revolving Accounts
Board of Nursing Examiners $178,047
CHC/GHI Revolving $128,461
DPH Environmental Quality/Sanitation Revolving $387,897
Rota Municipal Council back pay $58,007
Saipan Ambulance Fee Revolving PL 13-12 $ 553,392
Tinian Ambulance Fee $1,280
Rota Ambulance Fee $ 3,028
Sub-total $1,310,112

Old Remaining Budgets
Pre 1996 Section 702 Talks 1909 38,446
Pre 1996 Jr. ROTC 1910 2,984
Pre 1996 TIQ Guesthouse Operations 1920 1,551
Pre 1996 CHC FMS 1921 10,482
Pre 1996 Finance FMS 1928 12,977
2003 Asia Pacific Little League 1932 1,135
Pre 1996 Retirement COLA 1933 87,000
Pre 1996 DLNR Melon Fly 1934 37,266
2000 MV Shogun Settlement 1935 26
PL 8-2 PSS Lapse 1940 131,321
PL 11-41 30% Retirement Bonus 1941 129,924
PL 10-41 Rota Mayor 1942 11,955
PL 10-41 Salary Adjustment 1943 520,698
1999 DLNR Pagan Reef Damage 1946 2,119
FY96 OPA Medical Referral 1947 581
PL 8-2 Miscellaneous 1974 3,110
Sub-total $991,575

Tobacco Settlement
DPH Community Guidance Center 7651 $355,553
DPH Children’s Health Ins. Program 7652 50,261
DPH Division of Public Health Program 7655 25,131
Coalition of Private Schools 7658 47,120
Mayor of Rota 7657 62,827
Mayor of Tinian 7658 46,895
Sub-total $387,787

Others
Fina Sisu Sewer System Project 3388 $500,000
CDA 315,000
Sub-total $815,000

Grand total $5,109,650