By Bryan Manabat
[email protected]
Variety News Staff
THE Commonwealth Healthcare Corp. will be able to pay off its arrears in approximately 17 years if the hospital stays current on its bills and consistently meets its minimum monthly payments, Assistant Attorney General Tina Ngo said in a recent status report to the federal court.
According to the filed report, on Nov. 18, 2024, the late Gov. Arnold Palacios signed Public Law 23-30, which lowered CHCC’s utility rates from the government rate to the lower commercial rate.
“This has enabled CHCC to stay current on its bills and stop the accumulation of additional arrears,” Ngo said.
On Aug. 12, 2025, Gov. David Apatang signed Public Law 24-11, which waived $35,734,974.91 in penalties billed by the Commonwealth Utilities Corp. to CHCC.
“This left a balance of roughly $30 million owed by CHCC to CUC for utility services rendered — but unpaid — over the course of many years,” she said.
On Nov. 7, 2025, CUC and CHCC entered into a new memorandum of understanding requiring CHCC to make minimum monthly payments of $150,000 toward its arrears while staying current on ongoing utility bills.
“Since entering into the Nov. 7, 2025 MOU, CHCC has made its required monthly payments while staying current on its regular billings,” Ngo said. “At this rate, assuming CHCC stays current on its bills and faithfully meets its minimum monthly payments, it will take approximately 17 years to pay off its arrears.”
In November 2008, after the EPA cited CUC for violating the Clean Water Act and the Safe Drinking Water Act, the federal court issued Stipulated Orders 1 and 2 (SO1 and SO2). SO1 addresses drinking water, wastewater, management structure, finances, and long-term capital improvement plans. SO2 focuses solely on oil-related issues, including contamination at CUC’s power plants and required corrective actions.
The stipulated orders require the parties to file periodic status reports with the federal court.
Bryan Manabat was a liberal arts student of Northern Marianas College where he also studied criminal justice. He is the recipient of the NMI Humanities Award as an Outstanding Teacher (Non-Classroom) in 2013, and has worked for the CNMI Motheread/Fatheread Literacy Program as lead facilitator.
