CUC only paid 80 percent of the work completed, he said.
“Shortly thereafter, the engines did go down. For whatever reason, CUC did not pursue warranty issues with CISCO to bring engines back up. CUC is pursuing them now,” Muna said.
Taotao Tano president Gregorio S. Cruz Jr. said prior to CISCO’s rehabilitation and repair contract, two engines of Power Plant 2 were already producing 3.1 megawatts.
Cruz wants to know whether CISCO actually delivered eight megawatts — excluding the 3.1 megawatts — or if it actually delivered only 4.9 megawatts.
In his e-mail to Muna, Cruz said CISCO president John Jones admitted in a television interview that he contracted to repair the plant up to a capacity of 10 megawatts based on pro-rata share.
“We completed 8 megawatts and we were paid for 8 megawatts and at that time CUC opted to end the work,” Jones was quoted as saying.
Muna said CUC was expecting to hear from Jones on “warranty issues.”
Engine 4, which delivered two megawatts, has been subsequently used as spare parts for other engines by CUC’s maintenance staff, Muna said.
Cruz said he noticed that aside from the recently reported additional change order of $135,000 on March 14, 2006 for additional work and parts purchase, there was another change order of $91,325.00.
He said a copy of this change order was faxed to Anthony Guerrero, the then-CUC executive director, by Jones on June 6, 2006.
The change order request included additional amounts needed for parts to be used for Power Plant 1.
“We notice that the additional amount requested was reflected in the original contract for Power Plant 2, ref. PG-06-C014,” Cruz said in his e-mail to Muna. “If the additional $91,325 was taken from the original contract for Power Plant 2 then it is illegal, especially when the contract itself signed and agreed upon for Power Plant 2 was derived from federal funds.”
Cruz said if the $91,325 was actually paid then Jones and Guerrero have a lot of explaining to do because “it is evident that improper channeling of federal funds was made.”
