CUC and CHCC enter agreement

Acting Commonwealth Utilities Corp. executive director Bettina G. Terlaje and Commonwealth Healthcare Corp. chief executive officer Dr. Esther L. Muna sign the memorandum of understanding yesterday, as Gov. Arnold I. Palacios, Lt. Gov. David M. Apatang, and other officials look on (OFFICE OF THE GOVERNOR)

Both Gov. Arnold I. Palacios and Lt. Gov. David M. Apatang played key roles in the breakthrough agreement reached between the Commonwealth Utilities Corp. and the Commonwealth Healthcare Corp., two critical government instrumentalities, over the hospital’s non-payment of its multi-million dollars in utility bills.

The final agreement between CUC and CHCC was reached past 4pm Monday. A memorandum of understanding was signed between the parties to formalize the agreement.

In a CUC media release yesterday, it said that CHCC agrees to resume paying its monthly utility bills, starting with its April 2023 utility bill of about $525,000. “CHCC will continue to make regular, timely, and continuous payment, like any or all regular paying utility consumers.”

If CHCC fails, reneges, or defaults on the MOU, CUC will proceed to disconnect the utilities of CHCC’s facilities.

The agreement also requires CUC and CHCC “to continue ongoing negotiations” to settle $53 million of the hospital’s outstanding arrears—overdue electric, water, wastewater and late fees—which remain unpaid.

Emerging from a nearly hourlong closed-door meeting presided over by Palacios and Apatang on Capital Hill, CUC officials—composed of board chair Janice Marie A. Tenorio, acting executive director Betty Terlaje and legal counsel Hunter Hunt—credited both Palacios and Apatang for supporting CUC’s intention to work with CHCC over its financial obligations.

“We extend our appreciation to Gov. Palacios and Lt. Gov. Apatang for ensuring both we, CUC, and our partner, CHCC, are able to prioritize our stakeholders—the community’s welfare—over any differences that can be settled amicably and collaboratively. Although the arrears are still pending negotiation and settlement, CUC is pleased that CHCC will begin to pay its current bills monthly going forward and freeze its arrears from increasing,” said Terlaje.

“The governor and lieutenant governor have always been supportive [of] our initiative to work with all of our customers, including government agencies, departments, and in particular, CHCC, in giving them flexibility to address what is owed our utility agencies,” Tenorio said.

Palacios and Apatang “expressed gratitude for CUC accepting CHCC’s offer and terms” as stipulated in the MOU, CUC said in a media release.

CHCC chief executive officer Esther Muña was joined by CHCC’s comptroller, operations manager, and legal counsel during the closed-door negotiations at the Office of the Governor’s conference room.

Also present during the negotiations were deputy attorney general Lilian Ada Tenorio, newly appointed CUC board member Rufo Mafnas, Senate vice president Sen. Donald Manglona (Ind-Rota), Rep. Blas Jonathan Attao (Ind-Saipan), Finance Secretary Tracy Norita, and acting Medicaid director Vicenta Rosario. (PR)