11 Jan 2017
- By Junhan B. Todiño - email@example.com - Variety News Staff
THE Public School System paid the Commonwealth Utilities Corp $2.7 million on Tuesday as part of the settlement agreement between PSS and CUC signed in 2015.
CUC sued PSS in Dec. 2013 over the school system’s unpaid utility bills. In Oct. 2015, the two agencies agreed to settle the lawsuit. At the time, PSS owed CUC over $3.8 million.
Based on their settlement agreement, PSS would make monthly payments of $100,000 every month beginning Nov. 15, 2015.
For its part, CUC agreed to waive all accrued interest and penalty charges on the PSS accounts but only after PSS had fully paid its principal obligation to CUC.
From Dec. 15, 2015 to Dec. 2016, PSS paid CUC $100,000 a month.
On Tuesday, newly installed Board of Education Chairwoman Marylou S. Ada presented the check for $2.7 million to CUC board chairwoman Adelina Roberto. This means that PSS, for the first time in many years, is now up-to-date with its utility payments.
Board of Education member Herman T. Guerrero said the $2.7 million was taken from the supplemental appropriation provided by Public Law 19-75 which appropriated $40.97 million in Saipan casino revenue to various government agencies, programs and obligations.
“We’re happy to pay CUC,” Guerrero said.