THE U.S. Department of the Interior has required the Commonwealth Utilities Corp. to return the $230,000 that was originally earmarked for the anticipated shortfall of Rota’s power generation capacity.
If CUC fails to act on this matter, the federal government may ask for the return of other U.S. funds provided to the utilities agency.
Rufo T. Mafnas, CUC comptroller, said the Department of Finance and the utilities agency “agreed to return” the $230,000 worth of capital improvement project funding.
The approval by the CUC board of directors, however, is still needed.
“I ask that the board formally approve the return of the funds and instruct the management to proceed to reprogram resources to recognize the capital investment for Rota,” Mafnas said.
This amount will re-enter the pool of Rota’s CIP funds.
“Should there be no solution acceptable to the Interior, CUC will be required to fund its capital improvement projects with its own internal resources,” Mafnas said.
“CUC is not in a financial position to absorb 702 CIPs,” Mafnas warned.
CUC may have to pay for the $475,000 contract of Pacific Machinery, Inc., he added.
Mafnas, however, said CUC can ask the Rota legislative delegation to communicate with Interior.
CUC had initiated the request to Interior, which denied it.
Mafnas said CUC may also have to return the CIP funds for Juan C. Tenorio & Associates’ contract for the beach road A&E design.
Interior has requested the Office of the Public Auditor to prepare a report that deals with the disagreement between CUC and Interior regarding the determination of “unallowable costs.”
