By Gemma Q. Casas
Variety News Staff

A LAWMAKER says the Commonwealth Utilities Corp. should establish its own internal audit unit to avoid future problems with its ineffective internal controls, weak compliance monitoring and lack of timely management oversight.
Rep. Francisco Dela Cruz, Covenant-Saipan, further suggested that CUC privatize its internal audit function while still in the stage of developing it.
Dela Cruz, the chairman of the House Committee on Public Utilities, Transportation and Communication, said he reviewed reports and letters prepared by the Office of the Public Auditor about CUC over the past six years which indicate that its problems are a result, indirect or direct, of the ineffective management system.
“In my review of the OPA’s reports, it appears to me that many of the problems noted resulted, either directly or indirectly, from ineffective internal controls, weak compliance monitoring and lack of timely management oversight,” said Dela Cruz in a letter to CUC Executive Director Anthony Guerrero.
“While I commend OPA for its vigilance, I cannot help but believe that CUC could be better served by its own independent internal audit that is properly structured, has adequate resources and is professionally capable of conducting internal audit work in accordance with established professional standards,” he added.