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CUC faces OPA scrutiny
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Posted on Mar 15 2001
After getting a beating for cutting power in government offices in Tinian and Rota, the Commonwealth Utilities Commission appears to be headed to another test.
The Office of the Public Auditor yesterday revealed that preliminary talks leading to a special audit on the utility company have started.
Public Auditor Michael Sablan, however, clarified the special audit has nothing to do whatsoever with the controversy the CUC is now facing.
“The audit is something we’ve been planning for the past months,” he said.
Mr. Sablan said the preliminary meeting was attended by CUC Executive Director Timothy Villagomez, accompanied by the company’s legal counsel and accounting staff.
He said Mr. Villagomez and his officials all promised to cooperate fully with the planned OPA special audit.
The planning phase of the audit, according to Mr. Sablan, would involve the OPA working with the CUC Board to obtain the necessary information to define the scope of the special audit.
The special audit on CUC was prompted by previous requests from the legislature, Department of Finance and the general public. However, the clamor to audit the firm predated the disconnection of electric service to public offices in Tinian and Rota.
Previous independent audits on the CUC showed weaknesses in its internal controls.
According to Mr. Sablan, the special audit would determine whether the utility company has implemented measures to strengthen those loopholes.
The CUC last Monday disconnected electric service to government offices on the islands of Tinian and Rota.
The utility company also threatened to do the same to a number of government offices on Saipan unless the Department of Finance comes up with the money to pay the delinquent bills.
The other day, Finance Secretary Lucy Nielsen disclosed the CUC is asking for a minimum lease of $800,000 a month for the return and continued supply of electricity to government offices throughout the CNMI.
