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$80K approved for Babauta
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Posted on Dec 20 2011
The newly established Commonwealth Healthcare Corp. board has approved an $80,000 annual salary for its chief executive officer, Juan N. Babauta, who been working for the corporation since on Oct. 1.
Board chair Joaquin Torres said, however, that a formal contract with Babauta has yet to be executed. That means Babauta has yet to officially agree to the contract’s provisions. He has not been collecting any salary since he started working for the corporation two months ago.
Former Public Health secretary Joseph Kevin Villagomez used to get $60,000 per annum.
Babauta is a retiree who receives an annual pension of more than $100,000, sources said. Under the law, he is only allowed to double-dip—to receive both his salary from a government position and his pension—for 60 days. After that, he will have to choose whether to accept the salary or waive his pension.
This issue, in addition to being busy with several problems at the Commonwealth Health Center, may be one of the reasons why Babauta has not yet signed his contract, Torres said.
He believes that some clarification relating to the law that created the healthcare corporation is also an important factor in making the decision.
Torres declined to further comment on the matter when pressed, but assured that the board will support and respect whatever decision Babauta makes.
The CEO was in a meeting when contacted yesterday for comments.
Torres earlier told Saipan Tribune that Babauta’s contract is for four years and that “salary will not be an issue” for Babauta because of his “great desire” to turn around the hospital’s situation.
In an interview with Babauta at the recent Saipan Chamber of Commerce meeting, he confirmed that Villagomez was officially out of the corporation effective Oct. 24. He also disclosed that the corporation had tried to ask Villagomez to stay but he had refused.
The corporation chief also disclosed that the hospital has collectibles of up to $52 million of which only a quarter may be actually collected because of the statute of limitations.
