‘MPLT will release $7M once all conditions are satisfied’

The Marianas Public Land Trust described yesterday as welcome news the signing into law of House Bill 17-278, which will provide the public hospital additional funding for its operation in the form of a loan.

However, MPLT chair Pedro R. Deleon Guerrero told Saipan Tribune yesterday that these monies will only be made available once all conditions and requirements are met and satisfied by the Commonwealth Healthcare Corp., the direct recipient of the funds.

“It’s good thing the governor signed that into law so we can move ahead. That money is available for such purpose, but we want to make sure that MPLT interest is protected so there are conditions and specific provisions that must be met [by the corporation]. The funds will be made available once all these conditions are satisfied by CHC,” he told Saipan Tribune yesterday, adding that MPLT may ask for more requirements from CHC on the new loan.

H.B. 17-278, now Public Law 17-76, was signed Friday by Gov. Benigno R. Fitial to provide the public hospital an additional $7 million line of credit from MPLT as part of the $11.58 million originally contemplated for the corporation.

MPLT has already loaned out $4.58 million to the corporation as a revolving credit line. Of the amount, $1.58 million was set aside for the health electronic record system project while $3 million was used for the immediate needs of the Commonwealth Health Center, including payroll and medical supplies.

Deleon Guerrero called a special meeting yesterday solely to discuss the details of the new law with the agency’s consultant and legal counsel. When asked how soon the funds could be released to the corporation, Deleon Guerrero could not immediately give a timeline, citing provisions, conditions, and other requirements that the corporation must satisfy.

Officials and representatives of both MPLT and the corporation are scheduled to privately meet Friday on the same issue.

On June 4, Deleon Guerrero expressed concerns about what’s happening at CHC, believing this might affect the existing and future loan agreement with the hospital.

“This gives MPLT greater concerns as to CHC’s viability and its operation as a ‘going concern.’ Thus, this current environment has diminished the relevance of the documentation and business plan that MPLT previously needed for its due diligence process,” stated Deleon Guerrero in his June 4th letter to corporation chief executive officer Juan N. Babauta.