Rep. Joseph C. Reyes, R-Saipan, said the MOA signed and executed in Jan. 2004 “has not been suspended and is still in place, but it has never been followed and a lot of provisions have been breached.”
Reyes noted that CDA owns $45.5 million in preferred stocks of CUC.
The lawmaker said the legal counsels of both agencies “must sit down and do something about the MOA.”
CDA earlier blamed CUC for not complying with the terms and conditions of the amended MOA.
CUC also failed to provide CDA with updates and complete information, CDA stated.
But Reyes said CDA “must not just sit and wait for CUC’s response — it has to do something to make it happen.”
CDA, he added, has to remember that the CUC stocks it holds are taxpayers’ money.
“Both parties lose because they’re not moving ahead to fulfill the intent of their agreement,” Reyes said.
He said the CUC privatization bill passed by the House also aims to protect CDA’s interest.
Reyes wants CDA’s executive director to be a member of the Public Utilities Commission.
“It’s only fair that CDA is represented on the commission because it has $45.5 million in preferred CUC stocks,” he added.
According to CDA, CUC has yet to submit its updated financial documents, which include the valuation of CUC’s assets and schedule of payment of dividends.
The enactment of Public Laws 15-12 and 15-44 has also delayed the implementation of the MOA, CDA said.
P.L. 15-12 authorized CDA to write-off the principal sum and interest due to it from loans extended to CUC. P.L. 15-44 amended P.L. 15-12 to further the rehabilitation and reorganization of CUC.
