Speaker raises concerns, admin assures no improper contracts

House Speaker Arnold Palacios yesterday expressed concern with the legal implications of Gov. Benigno R. Fitial’s recent declaration of a state of disaster emergency for the CNMI.

Palacios instructed the House legal counsel to review Fitial’s Executive Order 2008-10 and provide a legal analysis by yesterday, Friday, or this Monday.

He said he wants their legal counsel to give the House a clear briefing on what would be the legal implication of this executive order.

“There are some concerns that need to be clarified, not just from me personally as a Speaker, but also from other members who expressed the same concerns,” Palacios said.

On Aug. 1, Fitial issued the executive order that declared a state of disaster emergency for the CNMI, citing that one of the power engines at the Commonwealth Utilities Corp.’s Power Plant 1 in Lower Base could explode at any time, maiming or killing power plant workers.

The declaration caught some lawmakers by surprise, including Sen. Paul Manglona, who chairs the Committee on Public Utilities, Transportation and Commission. Manglona said the executive order was signed on Aug. 1, but he became aware of it only on Thursday, Aug. 14.

Palacios said there are certain things that need to be clarified because the declaration suspends existing statutes that are meant to be guidelines and safeguards in terms of procurement, particularly with the Commonwealth Public Utility Commission Act of 2006.

“So we’re having our legal counsel look into all these so we can get a clear bearing,” the Speaker pointed out.

He said he is sure that the Senate legal counsel is doing the same review to provide advice and clarity to the senators.

Manglona on Thursday questioned whether there are other contracts being signed using this emergency declaration.

The Rota senator pointed out that the declaration was issued shortly after the bill he and Sen. Maria Frica Pangelinan introduced was passed and subsequently became Public Law 16-9.

The legislation accommodated the emergency power generation contract that CUC was trying to initiate with independent power producer Aggreko International.

The Fitial administration assured yesterday that the utility agency, under the new leadership of executive director Tony Muna, is not going to allow improper contracts to be executed.

“We would like to assure the public and the people of the Legislature that this is a different situation now,” Reyes said.

With respect to the declaration, the press secretary said the document allows the administration to make sure they are able to resolve the problem, to do everything lawfully within their power to address the crisis at CUC.

“As far as we are concerned, we want all the legal tools at our disposal to remedy the problem. There is a very serious problem. Everybody knows that.And we are in great danger of having a complete islandwide blackouts.

“We don’t know if that’s going to happen, when that might happen. But if it continues the way it is now, it’s going to happen eventually,” Reyes said. “So that’s why we are so looking forward to getting the Aggrekko generators.”

As to why some lawmakers only learned about the declaration on Thursday, Reyes said the document was stamped Aug. 1 and received by the Senate president and the House Speaker.

“We are in communication with the Senate president and Speaker. They are aware. I think what might have happened is maybe they didn’t get this information from their leadership. We apologize if they didn’t get this right away,” Reyes added.