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Babauta says she’s working on a plan to resolve CHCC-CUC dispute over arrears
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Posted on May 08 2023
Commonwealth Healthcare Corp. chief executive officer Esther L. Muna, middle, is all smiles as she and CHCC chief strategy officer Kaitlyn Neises-Mocanu, left, and CHCC chief financial officer Perlita Santos complete their presentation about CHCC’s utility billings before the joint Senate Health, Education, and Welfare Committee and Senate Public Utilities, Transportation, and Communications, in the Senate chamber last week. (FERDIE DE LA TORRE)
Sen. Celina R. Babauta (D-Saipan) has disclosed that she and the Palacios-Apatang administration are working on a plan that they are hoping will resolve the dispute between the Commonwealth Utilities Corp. and Commonwealth Healthcare Corp. over CHCC’s $53.6 million outstanding balance for unpaid electric, water, and wastewater charges and late fees.
At the Senate joint meeting between the Health, Education, and Welfare Committee, and Public Utilities, Transportation, and Communications Committee last week, Babauta said she’s working with a consultant who provides pro bono services to her office and that they working on a plan in conjunction with the administration in trying to resolve the CUC-CHCC dispute.
She said when CUC issued the disconnection notice to CHCC, they immediately went into a conference call with Gov. Arnold I. Palacios and some investment attorneys.
Babauta said they are dealing with bond investment attorneys, but that it does not necessarily mean they are going to float a bond.
“We can’t, especially for our operations. The Constitution disallows that. But we’re trying to work on a solution and hopefully it will satisfy both sides. I think it will,” the senator said.
CUC’s plan to disconnect power and water services to CHCC and Department of Public Works did not push through last Thursday. CUC announced Thursday night that it held off the scheduled disconnection following a breakthrough in negotiations. CUC said details will be forthcoming.
Babauta, who is currently in Hawaii for the Territorial Climate & Infrastructure Workshop, said she will be meeting with the bond investment representatives, who will be arriving on Saipan the week that she returns. (Ferdie de la Torre)
