$5.8M for hemodialysis project OK’d

Gov. Juan N. Babauta approved Friday a bill that appropriates $5.8 million for the completion of the Public Health and Hemodialysis Center at the Commonwealth Health Center.

Babauta signed into law House Bill 14-258, which authorizes the reprogramming of $5.8 million from the funds allotted for the Kagman Wastewater project funds.

The measure was authored by House Vice Speaker Timothy Villagomez.

Babauta, however, vetoed part of the bill that takes $2 million from the wastewater project for a road paving project in Kagman.

“In order to ensure that I can keep that commitment to Kagman, I have vetoed that part of the bill…We have limited resources; and in my judgment, protection of the environment and protecting the health of the people of Precinct I must take priority,” said Babauta.

In his remarks, Babauta said that the Legislature “made a difficult decision” in passing the reprogramming bill.

“But they made the right decision,” he said, noting it was a practical thing to do, considering that the Kagman project would not be ready to begin until spring 2006.

“In the meantime, that money is lying idle, losing value. Having funds lie idle also hurts our chances for getting more money from Congress and the Interior Department. We can’t risk that,” he said.

Villagomez said he agrees with the line-item veto.

The reprogramming bill came following findings that the public health project’s over $11 million funding had already been depleted despite the construction being only about 40 percent complete.

The Legislature had originally appropriated $11.8 million in capital improvement project funds for the project. Of the amount, the Department of Public Health awarded a $5.6 million contract to AIC Marianas to construct the facility. Due to an allegedly faulty design, though, the contractor had repeatedly asked for change orders, totaling over $4 million. About $2 million had been spent for two architectural and engineering designs. Other expenses reportedly went to administrative activities.

The depletion of the original funding has prompted concerns of possible mismanagement of the project. Various agencies are now looking into this, including the Legislature, Office of the Public Auditor, and the U.S. Army Corps of Engineers.

The Legislature also asked the Department of the Interior’s Inspector General to audit the public health project.

Meantime, the administration said that the reprogrammed money from the Kagman wastewater project will be returned beginning fiscal year 2007.

H.B. 14-258 was co-sponsored by Rep. Jesus Attao and Rep. Janet Maratita.