Records: PSS owes CUC $1.2M

The Public School System owes the Commonwealth Utilities Corp. nearly $1.2 million in overdue payments, based on records obtained by the Saipan Tribune via the Open Government Act.

Education Commissioner Rita Sablan earlier said that, according to their records, the school system does not owe CUC any money, but CUC executive director Antonio Muña has repeatedly said PSS owes $1.8 million in past debt. That money, along with $1.6 million that the central government owes CUC, is going to help pay for the $6 million emergency Aggreko generators, Muña said. A payment of $504,000 is due to Aggreko in less than two weeks. Muña said he hopes to have the money from PSS and the government this week.

According to PSS records, the school system owes CUC $1,192,289.34 for fiscal year 2008. The number does not include the month of September.

PSS is disputing another $300,000 that the school system believes it has been overcharged.

According to their records, PSS owes a balance of:

-$42,433.81 for the month of April;

-$323,536.72 for the month of May;

-$370,885.18 for the month of June;

-$313,707.02 for the month of July; and

-$141,726.61 for the month of August.

Representatives from PSS had earlier said they paid CUC $173,000 for the month of August.

Altogether, PSS paid CUC $2,473,551.91 for fiscal year 2008, not including the month of September. This figure includes $1.6 million that was reallocated from PSS’s budget to CUC after Finance Secretary Eloy Inos gave permission for the transfer.

Then PSS acting education commissioner Craig Garrison said the transfer was “underhanded.” Garrison said he was open to transferring excess funds to CUC after both parties calculated and compared their numbers. But, Garrison said, that never happened and funds were transferred without his knowledge. Inos earlier said he looked at the projected payroll through the end of the year and saw there were funds available to transfer. He added that he followed up with Garrison through an email.

In an e-mail to CUC acting chief financial officer Joanne Paraiso dated July 15 and obtained through the Open Government Act, Muna wrote that Inos “has advised that we apply 1.6 MM wire transfer to our account on or about 6/28/08 to PSS’ outstanding account balance.”