Muna also said that the similarities in the schedule of values for all engines submitted for repair work were not based on assumption.
“For same model engines, work was essentially to be the same. In an overhaul, there was essentially same type of work to be done from engine to engine therefore the pricing also the same,” Muna said in an e-mail.
Taotao Tano president Gregorio Cruz Jr. has questioned the scope of work and parts of Power Plant 1 engines that have similar schedule of values.
Muna said the DCM staff visited the plant site after which their engineer made a presentation to the administration and the Legislature.
One of DCM directors and engineer who made presentation were involved in Guam’s power production recovery, Muna said.
According to Cruz, if CUC paid DCM-EEI $400,000, and $275,000 in mobilization cost, the utilities agency would still have $4,331,350.70.
The mobilization cost, Muna said, was included in the $400,000 paid to DCM-EEI.
The $4,331,350.70 was the balance of the $5,006,350.70 total contract cost, he added.
CUC would have paid DCM upon its completion but it placed the contractor on default for its failure to comply with all the requirements of the agreement.
Muna said the Attorney General’s Office will handle the final settlement with DCM, which failed to complete its contract work when CUC terminated its contract.
“For work done, none of the engines were delivered to CUC with promised work completed,” Muna said. “Engine 7 was the only one that actually was in overhaul progress. DCM was challenged from the very beginning of contract in bringing in parts.”
Cruz said since the AG’s office is tasked to investigate the DCM contract., Attorney General Mathew Gregory, who is one of the signatories of the contract, should inhibit himself from the probe.
