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‘CUC won’t resort to collecting govt arrears ASAP’
Despite the Commonwealth Utilities Corp.’s current woes that include the threat of receivership, CUC board chair David Sablan Jr. said the public utilities will not resort to demanding that the government pay its past arrears immediately to fund court-mandated projects.
Sablan told Saipan Tribune during a public hearing on Sept. 23 that he will soon meet with the Public School System, Commonwealth Healthcare Corp., and the central government to discuss ways to settle their arrears more efficiently.
“They have been keeping up so far with their current bills, which is good, but the receivable accounts remain uncollected. We need to discuss on how we will find a way to collect these past dues,” Sablan said.
According to him, CHCC, PSS, and the central government have been keeping up with their current bills all the way to August.
These three owe CUC a total of $23 million: The central government owes about $4 million, PSS about $7 million, while CHCC covers the remaining balance, which is $12 million.
“But I am appealing to the Governor’s Office and Legislature to please pay their past dues. Also, PSS and CHCC [need] to pay. Because they cannot do it with the revenues they receive currently, I am appealing to the governor to please fund PSS and CHCC so they could pay their past dues,” Sablan said.
The best option for CUC to be able to implement all projects required under stipulated orders is the collection of past arrears. Two of the projects under the stipulated orders are funded by federal grants, while 14 projects remain unfunded and cost about $20 million. Collecting the $23 million will address these unfunded projects.
CHCC’s past arrears was among the issues that were hotly debated by CUC board members at their last meeting. CUC is currently under a temporary restraining order that stops it from disconnecting the public hospital as long as it remains current in its payments.
