Greg Cruz, Taotao Tano president, said a “serious investigation” should be conducted on CUC’s transactions with the Commonwealth Industry Soppy Co., Inc. and the DCM Group Inc.
Both contractors, he said, were involved in multi-million-dollar rehabilitation and repair contracts but CUC’s power plants remain broken.
“Someone has to be held accountable and responsible for the $885,000 CICSO sole-sourced contract,” Cruz said, adding that Lt. Gov. Timothy Villagomez signed the contract under emergency procurement on March 14, 2006 for Power Plant 2.
Recently, CUC signed a contract with Aggreko International Project Ltd., which will provide up to 10 megawatts of power for 52 weeks on Saipan
CUC Executive Director Antonio Muna also issued a “notice of default and opportunity to cure” to DCM because of its failure to comply with the terms of the contract.
“DCM Group Inc. issued a discontinuation of work order to its personnel without adequate justification,” Muna said in the notice.
Upon receiving the notice, DCM, which has a $5.1 million contract with CUC, was ordered to cease all work other than the work in progress that the contracting officer authorizes to continue.
Muna said “CUC intends to seek a new contractor to finish the scope of work contained in the contract,” adding that DCM will be liable for any additional costs of a completion contract resulting from its default.
Regarding CISCO, Cruz said he don’t understand why CUC is still waiting for the power plant parts more than two years after the agency signed a contract with the company.
As of June 20, Power Plant 2 was producing 3.3 megawatts as only two of its six diesel engines were operating. The other four were “waiting for ordered parts and maintenance.”
“Two years and three months had lapsed but the CISCO contract was ignored, consumers are being oppressed and Power Plant 2 is not functional,” Cruz said.
“Where is the money? Where is the service? Why does CUC continue to procure contracts with CICSO when it failed to deliver as agreed in signed contract?” he asked.
