Guerrero told the governor the Fund missed the opportunity in investing in the CNMI’s only telecommunication company and won’t pass this chance again in the case of CUC.
“In order to ensure that we explore every viable investment opportunity in our community with the potential for the best return on our investments, we respectfully submit this letter to express an interest to invest in the CNMI’s only utility provider, the Commonwealth Utilities Corp.,” Guerrero said.
He said the Fund’s interest in investing in CUC is still at an exploratory stage and will only proceed upon the advice of financial experts.
“The Fund’s Finance & Investment Committee, along with the Fund management, consultant, money managers and appropriate staff, will do what is necessary to ensure this alternative investment is sound, prudent and transparent, with all the necessary safeguards in place to protect the Fund’s investment,” the board chairman said.
The Fund’s previous board of trustees rejected the central government’s request to lend CUC up to $25 million to rehabilitate its engines, citing its troubled financial situation as main reason.
The Fund itself is financially shaky due to its difficulty to collect timely premiums from the cash-strapped government.
As of January, the government’s arrears to the Fund amounted to over $160 million.
Additionally, the government owes the Fund more than $500 million in accumulated unfunded liabilities.
