Betty Terlaje
THE central government will submit a payment plan to the Commonwealth Utilities Corporation.
“It’s an informal settlement,” acting CUC Executive Director Betty Terlaje said. “Right off the bat, the central government will pay $400,000 by April 1st and submit a…plan for payment [for] all [the] other accounts [that have been] reconciled,” she added.
The U.S. Department of Justice-Environmental Enforcement Section has asked the federal court to “intervene” in the unpaid utility bills of the CNMI government, including the Commonwealth Healthcare Corporation.
“But because we have agreed to work with the central government in…reconciling the accounts so that payments can be made…the court was satisfied with that agreement… and so we are working with the Department of Finance to help them identify the payments they made to CUC over some period of time,” Terlaje said in an interview during a break from the CUC board’s special meeting on Thursday.
She said CUC told the CNMI central government that the earlier payments it made were actually reimbursements from the Federal Emergency Management Agency, “and some…are their contributions for capital improvement projects that we did and other things like that…. We stand firm that the $13 million in our books is still the correct amount,” she added.
Terlaje said this amount represents $11.5 million in unpaid utility bills plus $1.5 million in penalties.
“The central government is not contesting the $1.7 million arrears for 2021 because they feel that it’s already reconciled on their part, but anything after the $1.7 million they will sit with us to look over the…top 15 accounts. When we reconcile it and it’s not paid, then in the next 30 days they will pay 25% of those 15 accounts that have arrears…. Every month they will pay 25% of the arrears until it’s paid off by April 1, 2027,” Terlaje added.
“Every time we reconcile accounts, they will pay 25% within 30 days, and the balance will be added on to the April 1st balance, which every year must be paid until 2027, to pay off all the arrears,” she said.
CHCC
As for CHCC, Terlaje said it is “making monthly payments of $525,000 as part of a negotiated agreement signed in May 2023.”
She added, “Hopefully, CHCC will continue with the current payments…. In addition the federal court wants to see…CUC…enter into another agreement with CHCC in order to keep the current payment and…address the arrears. We need to come up with something that will address the arrears.”
A proposed payment schedule document for CHCC was discussed during the CUC board meeting on Thursday. The document indicated that as of Jan. 31, 2024, CHCC owed $32,890,832, “net of penalties.”
The payment terms are for 10 years with a monthly payment of $274,090.
Adding this amount to the current payment of $525,000, the total monthly payment for CHCC will be $799,090.
Judiciary
Terlaje said the CNMI judiciary’s arrears are among the 15 accounts that need to be reconciled.
The judiciary owed CUC $2,486,634.02, according to the delinquent notices that the utilities corporation sent out last year.
“I don’t recall the exact amount, but they have a dispute for water, but I think we already resolved it — we just need to work with the judiciary,” Terlaje said. “We will invite them soon to work with our CUC engineers. Our engineers would like to show them what their underground water system is like when operating…where the leaks are, so that they can address that, because those are incurring a lot of charges on their part,” Terlaje added.
