THE CNMI central government, the Commonwealth Healthcare Corp., the Public School System, the Commonwealth Ports Authority and other agencies owed the Commonwealth Utilities Corp. a total of about $77.8 million as of Jan. 31, 2024, according to CUC’s accounts receivable report.
Gov. Arnold I. Palacios on Friday said there is a need to “reconcile” the figures.
The report was provided by Acting CUC Executive Director Betty G. Terlaje to the Senate on Tuesday last week in response to Senate President Edith Deleon Guerrero’s request.
According to the report, the CNMI central government owed CUC $13 million, CHCC $60.5 million, PSS $224,647.68, CPA $2.5 million and other government agencies $1.5 million.
Variety also learned that CHCC is making a monthly payment of $525,000 as part of a negotiated agreement signed in May 2023.
On the day she received CUC’s report, Deleon Guerrero created a Special Committee on the CNMI Government’s Unpaid CUC Bills, which will investigate the government’s unpaid CUC bills.
She named Senate Floor Leader Corina Magofna as special committee chair with Sen. Dennis C. Mendiola as vice chair and Sen. Karl King-Nabors as member.
In her memorandum on Tuesday, the Senate president said the investigation of the CNMI government’s unpaid utility bills is necessary. The committee, she added, will report to the Senate within 60 days.
Deleon Guerrero also asked the Senate’s fiscal analyst David Demapan, legislative assistants and legal counsels to assist the special committee.
Last week, Federal Judge David O. Carter informed CUC officials at a status conference that he would like to have an informal meeting with the governor regarding the CNMI government’s unpaid utility bills.
The judge also asked CUC how the court could help in collecting government arrears.
Last year, CUC sent 16 disconnection notices to government agencies and departments regarding past due utility bills totaling $59.76 million.
‘Road map’
In an interview on Friday, Palacios said he had a discussion with CUC and other officials regarding a “road map” to resolve the unpaid utility bills of the CNMI government.
“After hearing that Federal Judge Carter wanted to meet with me regarding the numbers that are coming out … I [met with CUC and other officials] to see what we can do to address the situation,” Palacios told reporters.
“I certainly want to see it resolved. CUC wants it resolved. The Department of Finance wants it resolved and I don’t want to continue to see or hear that this administration is not taking any steps to discuss the issue with CUC and come up with some beneficial solutions for the Commonwealth,” he added.
The governor said they had a productive meeting on Thursday, Feb. 29.
The meeting participants included CNMI Attorney General Edward Manibusan, U.S. Department of Justice-Environmental Enforcement Section Senior Attorney Elizabeth Loeb, U.S. Environmental Protection Agency Enforcement Officer John Tinger, EPA Regional Counsel Janet Magnuson, EPA Project Manager Russell Mechem, Assistant Attorney General Hunter Hunt, Chief Solicitor J. Robert Glass Jr., CUC Deputy Executive Director Kevin Watson, CUC Technical Manager for Oil Rachel Wehlburg, CUC Engineer Nicolette Villagomez, and CUC Acting Chief Engineer Larry Manacop.
“Judge Carter asked us to sit down and see what needs to be done to put CUC in a better road map going forward. We hammered out a road map and agreed on what we needed to do,” the governor said, but added that the figures need to be reconciled.
“There’s a very significant difference in the figures,” he added. “One of the tasks is for Finance and CUC staffers to sit down and put it all together within 30 days to have it resolved by April and put forth an agreement for Judge Carter to consider. … The other issue, part of that outstanding billing goes back to fiscal year 2021. We came up with an agreement on the timetable to address the disagreement,” Palacios said.
“It is CUC’s contention that the central government has not made any payment at all … but it is the Finance’s contention that we did, and they have their own respective records that they have to reconcile together … that’s where we’re at with that, and I am hoping that this will be resolved,” the governor said.
