Flashback — May 1999-2003

CUC: No power rate cut[/B]

Calling a legislated rate reduction as “disaster,” the Commonwealth Utilities Corporation has warned lawmakers against forging ahead with their plan to lower the cost of electricity for residential and commercial users on the island by an average of 25 percent. CUC Chairman Juan S. Dela Cruz said the proposal would throw the utility corporation back to government subsidy as its financial standing would suffer with lower power rates. Although the reduction stands to benefit residents and business establishments, CUC expects to lose an average of $13 million each year in revenues under the Legislature-dictated policy. “The utility will be bankrupt,” said Dela Cruz in a letter to Senate Vice President Thomas P. Villagomez, chair of the Senate committee on Public Utilities, Transportation and Communications.

Philippine Ambassador to the United States Ernesto Maceda yesterday said the Northern Marianas offers investment opportunities to Filipino businessmen in agriculture, computer and construction. Maceda said former Philippine National Bank Governor Ed Espiritu has also recommended providing privately-funded agriculture development to the CNMI which many locals are not keen on venturing into. Majority of the farmers in islands are Filipinos and Chinese, proof that it is not a popular job among locals. They produce vegetables and fruits sold mostly for local consumption. However, due to the unreliability of supply, many restaurants, hotels and supermarkets import these produce from the US mainland.

Teno presses for cleanup of PCB[/B]

The Northern Marianas government will demand complete and extensive cleanup of the polychlorinated biphenyl (PCB) contamination in Tanapag to ensure safety for village residents, according to Gov. Pedro P. Tenorio. “I will not be satisfied until it has been resolved and they have cleaned up the area of contamination,” he told reporters in an interview yesterday. The governor, however, expressed relief over the presence of several federal officials who are currently on Saipan to check on the condition as well as conduct assessment study of the northern coastal village.

Former Gov. Froilan C. Tenorio yesterday unleashed fresh attacks against officials of the Commonwealth Utilities Corporation, accusing them as incompetent and ignorant of the laws in administering operations of the government-owned company. Because of potential illegal actions by its board, he sought an investigation by the Attorney General’s Office into their policy, practices and performance on the heels of critical decisions approved by directors in recent weeks. In a four-page letter to CUC Board Chair Jesus T. Guerrero, Mr. Tenorio said he was disappointed and alarmed “at the ignorance” of some of the members who tangled with him during a recent board meeting over its policies.

BoS’ stock value lowered to $1 a share[/B]

Bank of Saipan’s board of directors has decided to lower the value of each share in the recent stock offering to existing shareholders, in efforts to come up with the $2 million in fresh capital for the bank. In his recent report to the Superior Court, bank receiver Antonio Muna said the initial offer of $5.11 per share was reduced to a dollar per share during the shareholders’ meeting last April 26. This means that, instead of issuing around 391,389 additional shares of common stock, the total number of new stock shares to be issued would be two million.

The Commonwealth Utilities Corp.’s Board of Directors unanimously approved Friday to amend its existing contract with Telesource, allowing the private firm to use its power plant equipment on Tinian as loan collateral for another project. The board’s decision, however, is subject to possible change depending on the Attorney General’s final recommendation on the contract amendment. CUC board chairman Frank Q. Guerrero said he personally finds the amendment unfavorable to the CUC but he voted anyway because the AGO would still review it. “It has a provision that requires the AGO’s blessing to the amendment,” he said.