CUC fires CFO without cause

Matthew Yaquinto

The Commonwealth Utilities Corp. has terminated its chief financial officer “without cause” a day after he reported on CUC’s unhealthy financial status—adding further to the corporation’s lineup of vacant top and stipulated order positions.

Through a memorandum dated May 25, acting executive director Gary Camacho, addressed the notice of “Termination of employment without cause” to CUC CFO Matthew Yaquinto.

With the 30-day notice, Yaquinto is supposed to separate with CUC on June 25.

The memorandum sites Yaquinto’s contract stating, “In accordance with the fifth paragraph of your employment contract with CUC, and in accordance with Paragraph No. 8(B) of the Conditions of Employment which is attached to and made a part of your employment contract, you are hereby notified that your employment with CUC will terminate on June 25, 2016.”

“The termination of your employment with CUC is without cause,” it added.

In a phone interview with Camacho, he stated simply that they are following the provisions of his contract.

“Mr. Yaquinto’s terminated without cause pursuant to the provisions of his contract,” Camacho said.

Asked if they are not satisfied with Yaquinto’s work, Camacho declined to answer, repeating again that he did it “pursuant to his contract.”

Camacho is the only official allowed by the CUC board of directors to speak to the media and no other employee of CUC can give official statements.

CUC board chair Adelina Roberto said it was “the executive director’s decision” and he exercised “that part of Yaquinto’s contract.” She declined to comment further on the matter.

Yaquinto’s termination was made on the same day that some of the board members met with acting governor Victor Hocog to talk about government accounts receivables among others, and a day after Yaquinto reported to the board of directors that the corporation is going bankrupt due to lack of revenue. The board is responsible for setting policies to ensure revenues for the corporation.

It also comes after a board director shared the board’s expenses in the last two years and stated that the board is on its way to go over its budget.

Yaquinto, with his extensive experience and knowledge in accounting and working with power companies, has been with CUC since April of last year.

The CFO position is a stipulated order position, and CUC is required to “appoint another qualified individual within one hundred fifty (150) days of the date of the vacancy.”

Aside from the CFO position that will be vacant soon, CUC is yet to find qualified applicants to fill other stipulated order positions such as the executive director and deputy executive director among others.

CUC has been incurring penalties as it continues to fail compliance with stipulated orders. For SO1, which includes the executive director and the deputy executive director positions, CUC faces $2,000 to $5,000 per day in penalties. CUC has already accrued $40 million each in penalties for SO1 and SO2.