TO SETTLE CUC BILLS Teno eyes more belt-tigethening

Gov. Pedro P. Tenorio pledged yesterday to settle its mounting utility bills, saying the government will have to tighten its belt further to meet growing financial obligations.

He, however, did not say when his administration will make payment to the Commonwealth Utilities Corporation to reduce its $6.8 million in unpaid billings that have accumulated over the past six months.

“All of us have the responsibility to pay our obligation. We are looking into that,” Tenorio told reporters.

CUC officials on Tuesday expressed worries over the inability of the government to settle the debt and agreed to work out a payment schedule with the Department of Finance in view of the financial crisis troubling the Commonwealth.

According to Tenorio, the austerity measures put in place since the start of his administration in January 1998 have included conservation of electricity and water to bring down the government’s utility costs.

“That’s why I emphasize the importance of austerity measures because the situation is not getting better,” he explained. “We have the responsibility to pay vendors, retirement, utilities and also the hospital bills.”

Because of these obligations, the local chief executive maintained that his administration would not be able to provide additional funds to some departments and agencies which have been asking for bigger budget for Fiscal Year 2000.

“There are so many departments that require additional money to operate, but again we have to live within the limited resources that we have,” Tenorio said.

The unsettled utility charges is the latest in the growing financial woes that have faced the Tenorio administration in the last two years since the Asian recession pulled down tourism revenues and slowed economic activities on the island.

At present , the NMI Retirement Fund has an outstanding claims of $21 million, which represent unpaid contributions by the government for its nearly 5,000 personnel since January 1998, although the administration has paid at least $1.6 million monthly over the past two months.

Tenorio has also inherited a $57.3 million deficit from the previous administration, according to the Office of the Public Auditor in its report released last December.

The findings only covered FY 1997 under former governor Froilan C. Tenorio based on single audit conducted by Deloitte & Touche. At least $22.5 million of the total deficit — the highest so far — were due to overspending by agencies and departments, including $10 million by the Office of the Governor.