Unresolved questions in executive order

To the 16th Legislature:

The Governor has issued an executive order allowing the Commonwealth Utilities Corp. to borrow more than $500,000. Under the Governor’s new order, CUC will be authorized to borrow money from any private or public source in the Commonwealth, the United States or any country and give security in connection to such borrowing.

Borrowing to pay other debts represents an unwise practice. Given the track record of CUC’s repayment credibility, this is a serious concern. What are the risks? Do not allow this executive order to take full form until it is clarified further and other options are duly considered.

We do not believe that such an executive order is permissible under the CNMI Constitution. Though we recognize the danger of CUC’s financial crisis, we must reiterate that further clarity and other options must be exhausted. Do the right thing and direct CUC to the right and proper path so that we may all live in peace in a safe environment that includes a stable, affordable utility rate.

Furthermore, we believe that federal intervention in the matter should be highly recommended and considered a priority. The involvement of the Federal Bureau of Investigation is a step forward to the beginning of better accountability and increased responsibility of the Commonwealth Utilities Corp.’s future management. Let us not forget that the Department of the Interior’s Insular Affairs Office has infused millions and millions of dollars worth of funding toward the improvement of the Commonwealth Utilities Corp.’s infrastructure and operations in terms of public power and water distribution, but that the funding disappeared as a result of the corporation’s history of fiscal mismanagement and federal and local funding abuse.

Therefore, in the interest of the Commonwealth’s suffering consumers, we humbly and respectfully ask that all of you turn to the Department of the Interior’s Insular Affairs Office and work with them to find a solution to our power crisis. We must end all “state of emergency” declarations, as they represent solely the self-interest of unqualified, uncertified and unprofessional contractors in the rehabilitation of our dilapidated engines in our power plants. We urge all of you to reflect on the Commonwealth Constitution, which states clearly in Article X, Sections 3 and 4:

“Public debt may not be authorized or incurred without the affirmative vote of two-thirds of the members in each house of the Legislature.”

“Public indebtedness other than bonds or other obligations of the government payable solely from the revenues derived from a public improvement or undertaking may not be authorized in excess of ten percent of the aggregate assessed valuation of the real property within the Commonwealth. Public indebtedness may not be authorized for operating expenses of the Commonwealth government or its political subdivisions.”