Greg Cruz, Taotao Tano’s president, said lawmakers should not “hasten” the privatization but should instead investigate the cause of CUC’s inefficient delivery of service to the consumers.
“I support privatization but they should submit it to a public hearing first,” he told Variety.
Cruz said Taotao Tano is now researching and investigating the “conspiracy theory” of intentionally running the power plants into the ground.
In his letter to the senators, Cruz said “privatization is possibly the answer and the only solution” but the proposal should be justified and explained to the community, adding that some questions regarding the transactions involving CUC have not been answered by the government.
He cited the awarding of a $200,000 contract on June 8, 2006 for a technical review and assessment of CUC’s power generating facilities and the preparation of scope of work for the evaluation of power plant 1 and 2’s privatization.
CUC’s management, he said, has not also submitted reports about this contract to the public.
Cruz said the government also spent $27,000 for a charter trip to Pagan for a geothermal survey mission in March and April this year, but no procurement was made and the purchase order was paid in full.
In December last year, he added, CUC entered into a $5.6 million contract with DCM which agreed to provide all the necessary expertise, training, knowledge, parts, materials, equipment and manpower, including the capacity to perform for the fee stated.
But according to Cruz, the contractor “is in default” and has violated its agreement with CUC.
Cruz likewise questioned the government’s recent action of forming a special team to review the proposed privatization that will cost CNMI taxpayers $174,750 this year.
