He cited at least three observations mentioned in the Metzler & Associates CUC Management audit report with respect to CUC board.
First, the report said, the board had not established a sufficient capability to properly monitor CUC’s operations; secondly, the board had not acted urgently to improve relations with the customer community and the CNMI Legislature; and, third, the board of directors does not have the necessary experience or direction to properly perform their oversight and ratemaking responsibilities for CUC.
“I believe that up to the time the board was essentially relieved of its responsibilities to oversee CUC operations when then-Gov. Juan N. Babauta declared the first state of emergency in May 2005, the findings and conclusions of Metzler & Associates would have still been applicable,” Muna said in an email.
Earlier this week, the Senate asked Gov. Benigno R. Fitial to name his nominees for the CUC board.
CUC remains under the executive branch after the governor declared the CNMI under a state of emergency.
Sen. Paul A. Manglona, R-Rota, said the CUC Private Sector Partnership Act of 2008, which was enacted after lawmakers overrode Fitial’s veto, mandates the governor to appoint members of the CUC board which will serve as the agency’s governing body.
Senate President Pete P. Reyes, R-Saipan, said he will also ask the governor to appoint the members of the CUC board.
With the restoration of the board, CUC will again become an autonomous agency’s governing body, and all its transactions have to be approved by its directors.
In contrast, under the state of emergency declaration, the governor controls CUC and can suspend procurement regulations when awarding contracts.
