The fact, however, that he cannot pay for the upkeep of the engines from collections indicates a continuing problem at the utility. Ordinarily this would mean that CUC will have to “borrow” or get another “advance” payment from the central government or one of its appendages, further impacting the level of public services provided to the community. The U.S. Department of the Interior recently stepped up to cover the cost with a federal grant — money that could have been used for other “good” purposes, but is instead being diverted to prop up a dilapidated utility.
The CUC chief is also correct when he says that no responsible investor will respond to an RFP to purchase a broken-down entity for $250 million.But that was the previous Legislature’s intention: that CUC would not be offered at a fire sale price. The members of the 17th Legislature didn’t trust this governor. The CUC chief may want to ask the current lawmakers, most of whom are friendly with the governor, why they still refuse to pass in its entirety the administration’s version of the bill to amend the CUC privatization law.
Forming a cooperative “owned” by citizens who are not experts in running a utility and are easily influenced by politicians is a dubious proposition. Enthusiasm for this project won’t last long and soon, within a year or two, the utility will collapse and will be sold for little or nothing. Someone should also remind CUC’s new chief that local residents are used to subsidized rates and are now complaining because those good old days are over. What they demand in this era of high fuel prices are dependable and cheap utility services. They want the impossible and they prefer to believe politicians who promise them the impossible.
A new law, in any case, should be enacted to attract responsible bidders and the utility should be unloaded before disaster strikes, again.
Get used to it
THE community was relieved when Abe Utu Malae was hired to head the utility. For the first time in CNMI history, CUC’s top executive is not a political hack but an experienced utility professional with impeccable credentials.
But Malae must recognize that he is working for an entity that has putted along since it was established. After years of being mismanaged by political hires, CUC is still borrowing funds and, now, charging rates that few individuals and businesses can afford in this economy. Not surprisingly, CUC customers are expecting some improvements. It does take time to fix a broken system, but there is a limit to the people’s patience and understanding. As head of CUC, Malae should get used to questions and concerns brought to him by the public.
It’s part of his job.
As for getting out of the banking system, he is again right. But CUC is already extending lines of credit by permitting customers to pay in installments. These arrangements are, in effect, no-interest loans. To arrange for a third-party to assume these loans or to collect these sums, or to arrange for lines of credit to be extended to customers who cannot pay these bills seems a dangerous practice in the long run.
Game over
THE Senate says it rejected the re-appointment of Jerry Tan to the MVA board because although he may understand something about how the tourism business runs, he is unable to spend more time on the job.
This is a strange explanation.
The Legislature has many members who spend morning, noon and night on their jobs and yet have produced nothing of substance for the people of the commonwealth. There are also people occupying positions in the central government for years and years but have produced little or nothing for the CNMI.
Board positions are not intended to be 24-7 jobs. It is also not the MVA board’s job to get airlines to service Rota and Tinian. It is the administration and Legislature’s job to improve the islands as a tourist destination and create a business climate that will attract investors in the tourism industry. That will bring the airlines in.
There is obviously a problem with the local tourism industry, but using an MVA board seat as a ping-pong ball in the political game that the Rota and Tinian delegations are playing with the governor is not helping the CNMI — and is extremely irresponsible.
It is these senators who should be dismissed for showing up at work every day just to make bad decisions that hurt everyone in the commonwealth.
