CUC hits back at Lang

Responding to accusations leveled by former Gov. Froilan C. Tenorio, the Commonwealth Utilities Corporation yesterday turned the table against its chief critic as it blamed him for the failure by the government to pay its utility bills.

It also warned that his suggestion to disconnect power service to public offices would paralyze much of the CNMI as government operations are vital to social and business activities on the islands.

Pamela Mathis, CUC’s chief information officer, dismissed Mr. Tenorio’s charges of incompetence and ignorance by its board of directors, saying that these are mostly his appointees before his term ended in January 1998.

CUC Board Chair Jesus T. Guerrero and members Rosario M. Elameto and Laura I. Manglona are holdovers from the past administration who were later re-appointed by Gov. Pedro P. Tenorio.

The seven-seat board also would have been peopled by two other Froilan’s appointees had they stayed and opted to serve out their terms, according to Ms. Mathis. Businessman Benjamin A. Sablan, who was named to the post in 1996, recently ended his term.

“I will not allow him to conduct his business unprofessionally in spreading incorrect information to our customers,” she told in an interview. “I am not afraid to tangle with him as the people have the right to know the facts.”

Ms. Mathis’ statement came in the wake of a strongly-worded letter from the former governor addressed to Mr. Guerrero in which he lambasted recent decisions made by the board, particularly on not cutting off utilities to the government as well as rejecting Tinian Dynasty Hotel and Casino’s request for special power rate.

The government has owed over $11 million in unpaid utility bills which CUC has been trying to collect for the past few months through an easy payment plan designed to help the present administration meet the mounting financial obligations.

Mr. Tenorio alleged in his letter that the government-owned utility corporation is discriminating in the implementation of a tough disconnection policy as other customers who are behind in their payment are immediately cut off.

But Ms. Mathis argued there are currently 47 customers who have worked out a deal with CUC to settle their unpaid billings and yet they still continue to receive their utility services.

Better record

While acknowledging that Mr. Tenorio had a “better record” in paying government utilities compared to the current administration, she claimed that he left over a million dollars in debt to CUC during the last year of his term.

In her meeting last Friday with Finance Sec. Lucy DLG. Nielsen, she was provided with financial documents detailing the financial liabilities inherited by the Teno administration two years ago.

Ms. Mathis cited the $28 million in taxpayers’ funds missing from the account set aside for paying rebates and refunds as well as the $27 million owed to government vendors as of Mr. Tenorio’s final year in office.

Coupled with the $53 million decline in income taxes collection during FY 1998, the current financial crisis confronting the Commonwealth is a result of Mr. Tenorio’s mishandling of public funds, she said.

“If the government will be forced to pay its debt or else face disconnection, will the government used tax rebates to settle the bills? How will the government raise the money,” she asked.

“Absolutely he has a better record in paying CUC, but I don’t think he can simply do that. Look at where he apparently got the money — tax rebates funds. It’s all the people’s money. It’s the same pot,” added Ms. Mathis.

Although disconnection of utilities to government offices, such as schools and the hospital, is an option for the board, this could lead to several complications that will paralyze not only their delivery of public services, but also activities of the private sector.

For instance, companies from all industries on the island go to the labor and immigration department for processing of work permits. Also if utilities are shut down, there is possibility that government workers will be sent home and their incomes will dip, thus affecting revenue collections.

Quoting Mr. Tenorio’s statement during the April board meeting, Ms. Mathis pointed out that it did not suggest that members are “ignorant when he said that ‘If you [CUC] can survive with $10 million government debt, obviously you people are doing a good job.”