DOF, CUC still scrutinizing $12-M unpaid bills

The Tenorio administration is still discussing with the Commonwealth Utilities Corp. its unpaid billings in a bid to reach a settlement before cutting off power and water services to government offices.

Mike Sablan, the governor’s chief finance and budget advisor, disclosed yesterday about $1.15 million will be paid soon to CUC for utility billings covering a two-month period.

He said the administration has been paying between $800,000 to $900,000 to cover its utility expenditures. He, however, did not indicate how much has been shaved from the government’s outstanding balance.

Last month, the government-owned utility corporation demanded payment of over $12.2 million representing overdue billings since late 1997 and threatened to disconnect its services by middle of this month.

According to Mr. Sablan, they have yet to come up with an agreement on a payment schedule since there are still disputed billings they still need to reconcile.

Gov. Pedro P. Tenorio and some finance officials met the other day with CUC board directors in yet another effort to resolve their differences.

“We discussed some of the utility billings that appear to be questionable and disputable,” Mr. Sablan told reporters in an interview. “What we agreed in that meeting was to continue reconciling their billings against our records.”

CUC is expected to go back to the discussion table with the adjusted amount of the government debt, he said. He did not provide details when asked about how much has been found as discrepancies.

“There are some accounts that are blatantly erroneous and we have brought that out in our meetings for the past three or four weeks now,” Mr. Sablan explained.

“Some offices have disputed amounts in the tens and hundreds of thousands [of dollars] but there are also some accounts that are under billed, so it goes both ways,” he said, adding the discussion covers analysis of billings beginning FY 1999.

Utility officials have acknowledged “inaccuracies” in the government account that were raised by the administration, but have declined to reveal any figures.

But CUC Executive Director Timothy P. Villagomez earlier has expressed optimism that a deal would be drawn up after the disputed billings have been cleared.

The board has previously offered a payment scheme in which the government would drastically cut its debt by half for the first four months before accepting the administration’s proposal of $250,000 per quarter payment.

CUC and finance officials have been holding meetings to try to hammer out an agreement since the board took a hard stance last month amid the shaky financial condition of the utility corporation and increasing public pressure.

Board directors agreed to defer disconnection by mid-October should they fail to force the government to pay up.