Peavey terminated, escorted out

Commonwealth Utilities Corp. board of directors chair pro tem Janice A. Tenorio has terminated the employment of acting CUC executive director Dr. Dallas M. Peavey Jr. for cause.

Tenorio informed Gov. Arnold I. Palacios and Lt. Gov. David M. Apatang in a letter that she and CUC’s Human Resources staff became aware that Peavey had “exhibited dishonesty and a lack of candor” in his application to serve as deputy director for electric power systems.

Saipan Tribune learned that two CUC compliance officers escorted Peavey out from the CUC conference room at the Joeten Dandan Building during lunch time.

“This dishonesty severely called into question his ability to serve as acting executive director, a position which he expressed the desire to fill in a permanent capacity,” said Tenorio in a letter to Palacios and Apatang.

Tenorio did not elaborate on what she meant by “apparent dishonesty and lack of candor” in Peavey’s application.

According to online news report dated August 2022, an indictment was filed against Peavey in Texas for three felony charges involving falsification of travel expenses and invoices. He reportedly pleaded guilty to all charges and received a deferred adjudication of guilty. He was placed on provision for five years.

Deferred adjudication refers to a judge-ordered community supervision that allows a defendant to accept responsibility for a crime without an actual conviction placed on the record.

Dallas M. Peavey Jr. and Janice A. Tenorio

According to news reports, the case was subsequently dismissed in 2014 because Peavey had paid his restitution and probation fees.

Saipan Tribune had asked then-CUC executive director Gary P. Camacho a few months ago about Peavey’s Texas case, and Camacho stated that they’re aware of it, but their understanding was that it has been dismissed. Camacho did not elaborate.

Last Feb. 21, Tenorio designated Peavey, who is the deputy director for electric power systems, as acting executive director until further notice, after Camacho resigned.

Tenorio presided over the board’s regular board meeting Friday in the CUC conference room.

During Friday’s meeting, Peavey discussed his executive director’s report.

This comes five days after Peavey issued notices of disconnection to the Commonwealth Healthcare Corp. and Department of Public Works due to unpaid power and water services amounting to $53.6 million and $1.12 million as of March 31, 2023, respectively.

Tenorio said the roles of both the executive director and deputy director for power systems carry with them the highest expectations of integrity, accountability, and responsibility.

Tenorio said that when it became apparent that Peavey had failed to live up to these expectations, she took action, with the backing of the Office of the Attorney General, to terminate Peavey, and “protect the organization.”

Assistant attorney general Hunter Hunt was present as counsel for the board during the board hearing Friday. He was also present in the CUC conference room yesterday.

Tenorio said it is deeply regrettable that this “revelation” comes at such an inopportune time for CUC and the Commonwealth in general.

She noted that CUC is under federal oversight by the U.S. Department of Justice and Environmental Protection Agency, pursuant to two district court-stipulated orders.

“Mr. Peavey’s conduct would not have been acceptable to the EPA, nor is it acceptable to us,” the chairwoman pro tem said.

Tenorio said she and the newly empaneled CUC board are dedicated to serving the best interests of CUC and the people of the Commonwealth.

“We recognize that we have a fiduciary duty to ensure that CUC is properly managed by qualified individuals. Today, we tookaction in adherence with that duty,” she added.

Board director Donald Browne said yesterday that the decision to terminate Peavey was not a board decision, so he left the conference room.

Browne said that, according to Hunt, Tenorio can decide the termination by herself.

Browne said he does support Tenorio’s action. He said he only stayed in the conference room for five minutes as it was not an official board meeting and there was no vote expected.

A CUC staff said Peavey appeared surprised by his termination.

Some CUC staff described Peavey as very nice to the employees.

As of yesterday, Tenorio was working on the designation of Chretien T. Voerg, deputy executive director for water/wastewater, as acting executive director.