‘CPA owes CUC close to $23M’

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Sen. Sixto Igisomar (R-Saipan) disclosed Friday that the Commonwealth Ports Authority owes the Commonwealth Utilities Corp. over $23 million as of Dec. 31, 2017.

Igisomar, who chairs the Senate Committee on Public Utilities, Transportation, and Communications, said during Friday’s Senate session on Capital Hill that CPA owes CUC more than $23 million.

Reports obtained from CUC itself states that altogether, the Commonwealth government owes CUC over $50 million in accounts receivable.

The central government owes over $6.1 million, the Commonwealth Health Center owes over $20.4 million, and the Public School System owes close to $300,000.

According to Igisomar, the Commonwealth Healthcare Corp., which has jurisdiction over CHC, currently has a memorandum of understanding with CUC to settle its debt.

Tim Thornburgh, the federal programs officer of PSS, pointed out that PSS does not owe CUC anymore at the time.

Other government agencies, however, constitute the rest of the $23.1 million, with CPA reportedly taking up majority of the debt, according to Igisomar.

“I just wanted to paint that picture so we know that we don’t point fingers and say the government or the Legislature is not helping the government pay its bills,” he said, adding that both residential and commercial entities owe CUC a combined $9.9 million.

Senate President Arnold I. Palacios (R-Saipan) said in a statement during the same session that he appreciated the efforts of Igisomar to “clarify this issue.”

“Sometimes it is disheartening to be accused of not providing the funds for CUC and our utilities usage. …I hope we can put clarity on the issue,” Palacios said.

Igisomar, along with committee vice chair Sen. Justo Quituga (Ind-Saipan), has called in both the CPA and CUC management for more information.

Erwin Encinares | Reporter
Erwin Charles Tan Encinares holds a bachelor’s degree from the Chiang Kai Shek College and has covered a wide spectrum of assignments for the Saipan Tribune. Encinares is the paper’s political reporter.

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