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Bill seeks to authorize CEDA to write off $45.5M principal sum from CUC’s loans
Vincent S. Aldan
Rep. Vincent Aldan (Ind-Saipan) introduced Tuesday a legislation to authorize the Commonwealth Economic Development Authority to write off $45.5 million of the principal sum, and interest due, from loans extended to the Commonwealth Utilities Corp.
Under Aldan’s House Bill 23-52, all shares and stock owned by CEDA in CUC are dissolved, ending any ownership by CEDA in CUC.
The write off authorized under the bill shall be deemed the final settlement of all debts, obligations, and claims arising from the loans extended to CUC.
Aldan stated in the bill that the CNMI has been grappling with this longstanding issue related to the outstanding debt owed by CUC. He said the legal and policy implications of this issue have been the subject of intense scrutiny in recent years, resulting in several legislative proposals, court cases, and other initiatives aimed at finding a resolution.
The lawmaker said the bill will authorize CEDA to write off the principal sum and interest due to it from loans extended to CUC, as referenced in the amended Memorandum of Agreement executed by then-Commonwealth Development Authority and CUC in 2004.
Aldan chairs the House of Representatives Public Utilities, Transportation and Communications Committee.
Aldan said the outstanding debt owed by CUC to CEDA has has significant financial implications for the broader economic stability and development of the CNMI. He said the financial condition of CUC is critical to the economic stability and development of the CNMI, and that finding a resolution to the outstanding debt issue is therefore important. He said authorizing the write off is a reasonable and appropriation solution to the loan repayment issue.
He said this proposed solution is a fair and equitable resolution that benefits both parties.
