A tragedy of errors
ONE of the most oft-repeated campaign pledges of Ben&Tim in 2005 was the reduction of the power rates. Once sworn in, one of the first measures they implemented was the doubling of the rates, which were again doubled this year. CUC — now known as CUsick — said it needed to charge more so it could buy fuel. So the rates went up. But why are the power outages becoming more frequent? CUC said its power plant engines are also broken. Hence, these $10 million sole-source — i.e., no-bid — contracts for “rehabilitation.” But if the engines are already being repaired why do we still have blackouts? Because, said CUC, some of the parts needed are still being manufactured, and in the meantime the agency needs to spend another $6 million to rent a power generator from another contractor, Aggreko.
Later, we learned that some of the contractors are technically in default and CUC could have gotten better deals from other companies.
From the get-go this administration has made one bad impromptu decision after another regarding CUC. Most, if not all, of CUC’s contracts are questionable. Many suspect that they are sweetheart deals. Lawmakers have to look into these multi-million dollar agreements, including the proposed MPLT “loan” that will allow CUC to make an initial payment to Aggreko. Honestly, does anyone out there believe that CUC, which is as bankrupt as the central government, can pay its debts? The agency, remember, is now dipping into its customers’ deposits, and lawmakers have to pass a bill “forgiving” CUC’s debt to CDA.
The paying public has to know more about this Aggreko deal. Why was this company chosen? What were the criteria used? Was there a set of criteria to begin with? What will happen to the power generator that will be brought here by Aggreko once the contract period ends? Will CUC buy it? How much? Or will CUC extend the contract? There is, after all, no guarantee that CUC’s dilapidated engines will be functioning a year from now.
The problem with CUC, in any case, is fundamental. Its managers and board members know that they will never be held accountable for the poor decisions they make on behalf of the people. No one will be held responsible for all the lousy and crooked deals that CUC’s mismanagers have been signing all these years. Why? Because “no one” owns the agency. “No one” owns the funds its managers have wasted and continue to waste. Taxpayers? Who are those exactly? The person in charge is a politician who holds an elective office for at least four years. Hence, politics and self-interest — not a concern for competency and efficiency — guide the governor, whoever he is, when appointing CUC’s managers.
Can you imagine a company that runs itself like CUC? You can’t. Because such a business entity cannot exist — or it has shut down a long time ago.
THE commonwealth government has managed to pass two new budgets since 1998. As you read this, the government is spending your money under spending ceilings approved two years ago. Its revenue is plunging but the government is still splurging. And with only two months left in FY 2008, the governor’s FY 2009 budget proposal is still in the Legislature, which wants to return it to his office.
According to the Senate Committee on Fiscal Affairs, the budget package “contains enough math errors and data inaccuracies to justify no further consideration until such errors and inaccuracies are corrected or clarified and resubmitted.” The committee noted discrepancies in the personnel costs, which comprise the bulk of government spending. There are, moreover, “posting errors, erroneous calculations, and failure to prorate costs where appropriate.”
“The bottom-line,” the committee added, “is that the Senate cannot rely on the information currently submitted as documentation for the budget proposal…. It is not possible to know what we are being asked to approve, particularly in the area of personnel.”
This may be all true, but the real bottom-line, as usual, is that no one will be held responsible if the government, once again, fails to pass a new budget that reflects actual collections and necessary spendings. The governor and the Legislature can always fall back on a continuing resolution, and lawmakers can always abandon their primary duty and surrender control over the public purse to the governor.
This is not the way to run a government. The CNMI Constitution has to be amended to require the passage of an annual balanced budget — or the government shuts down. Not surprisingly, a legislative initiative that is proposing exactly that remains pending in the Legislature.
