‘Extend the deadline for CUC transfer’

Citing the unresolved financial mess at the Commonwealth Utilities Corp., a Commonwealth Development Authority board official asked the Fitial administration to extend the deadline for an executive order transferring the utility firm to the Department of Public Works.

CDA board chair Tom Glenn A. Quitugua said that CUC and CDA have not even reached a consensus on the debt settlement issue and financing plans.

“We are still in the middle of discussions. Our goal here is to fulfill the mandate of the law, that is, debt settlement. It’s important that this debt equity conversion takes place. If we are to do all these things, we need to be given the time to work things out. The EO should be extended so we can show the Executive Branch the true picture of CUC,” said Quitugua in an interview.

The EO, which converts the corporation into a mere division under the DPW, is to take effect by end of this month.

“There’s a very limited time available,” said the chairman.

The CDA has been meeting with CUC management on a debt settlement totaling $45.5 million in principal amount.

Under a memorandum of agreement, CUC has to convert these into preferred stocks and to issue them to CDA three years after its signing.

The MOA was signed in 2003.

At the same time, part of the CUC-CDA’s ongoing discussions are proposed financing schemes to bail out CUC from a deep financial crisis, CDA said.

As far as CDA is concerned, Quitugua said, “We have solutions for CUC.”

He declined to elaborate.

Quitugua said that while, CDA is confident that it can do its work, it is uncertain as to its own existence.

He said it would be better if the administration is clear with its plan regarding a possible CDA transfer or abolition.

“We are confident we can do it. As for CUC, we have solutions but are we just trying in vain here? How can we work effectively if our heads are hanging in the balance?” asked Quitugua.

The administration reportedly plans to transfer the functions of CDA to the Department of Commerce, thus abolishing the autonomous body in the process.

Quitugua said that CDA awaits to hear what the administration plans to do with CDA employees.

“All we hear is transfer of functions or duties. How about the employees? We want to see a clear-cut plan,” he said.