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PSS, CUC agree that PSS owes $1.3 million
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Posted on Oct 30 2008
After reconciling their records, the Public School System now concedes that it owes the Commonwealth Utilities Corp. more than $1.3 million.
The two entities reconciled their records after CUC executive director Antonio Muña said PSS owed the utility company $1.8 million in overdue debt. PSS officials had denied they owed any money until the Saipan Tribune, via the Open Government Act, looked at billing records and statements and discovered they owed the money.
Muña had said the money from PSS, along with $1.6 million due from the CNMI government, would help pay for the $6-million Aggreko generators, including the $504,000 that was due earlier this month.
Muña and PSS officials determined that the government would pay $414,214.76 for the month of October 2006, because at that time the government was paying for PSS’ utilities, Lori Grizzard, acting PSS Finance director, said earlier this month.
However, at a Board of Education meeting yesterday, board member Herman Guerrero said Finance Secretary Eloy Inos told him PSS must pay the more than $400,000.
When Inos was asked about the government’s debt yesterday, he said he was unaware the government owed money. He said the government continues to pay CUC for utility usage, but he did not have the exact figures. There is always an outstanding balance, he added.
Muña could not be reached for comment yesterday because he was off island, but earlier he had said, “At this point, we’re leaning on the government. We cannot not lean on that. We really need to have everyone participate in this process.”
Although Muña said he anticipated an increase in revenue from residential customers once the emergency generators stabilized power, he said the revenue would not be realized for 60 days.
Under the 12-month Aggreko contract, CUC paid $1.5 million as a down payment and is required to pay $504,000 each month.
The first payment was due Oct. 12. On Oct. 15 Muna said CUC had collected the money from customers—be it individuals, commercials and government agencies. CUC was waiting for the billing from Aggreko before they finalized the payment, he said.
