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House cancels session as work continues on line of credit deal
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Posted on Mar 08 2012
Gov. Benigno R. Fitial met yesterday with Marianas Public Land Trust and Commonwealth Healthcare Corp. officials who are pursuing an $11.58 million line of credit agreement so that the hospital will have an immediate infusion of cash to help pay its employees and vendors.
Press secretary Angel Demapan said the governor met with MPLT to see how they can move forward with the line of credit for CHC. He said when the governor left MPLT, the trustees were still in a meeting on the issue of the line of credit.
As MPLT and CHC work on the agreement two days after the governor placed CHC under a state of emergency, House Speaker Eli Cabrera (R-Saipan) delayed and then cancelled yesterday’s session.
The House was supposed to act yesterday on a Senate-substituted $11.58 million line of credit bill. The Senate amendments included $5 million for the Commonwealth Utilities Corp. to pay for the outstanding utility debts of both CHC and the Public School System.
The administration and the Legislature are looking at helping pay CUC $800,000 to restore power to PSS and CHC units.
Lt. Gov. Eloy S. Inos said yesterday morning that the Department of Finance has been working on identifying funds that can be reprogrammed to pay CUC at least $800,000 on behalf of PSS and CHC.
Inos said Finance reached out to both the Customs Service Division and Revenue and Taxation Division to make sure collections are posted and deposited in the bank and “to see any chance to transfer funds to CUC.”
Demapan said this issue was still a work in progress at close of business yesterday.
Meanwhile, MPLT chair Pedro Deleon Guerrero said the line of credit agreement has the same requirements set in Rep. Ray Basa’s (Cov-Saipan) House Bill 17-278.
“Basically we’re having the same requirements. We are now waiting for CHC’s repayment plan and a document that says where they will use the money for. They are now working on it,” Deleon Guerrero told Saipan Tribune.
As to the fate of HB 17-278, Deleon Guerrero said MPLT does not want to interfere in the Legislature’s affairs. He also said PSS has not approached MPLT to help them with their payment to CUC.
