CUC board affirms Peavey termination

Commonwealth Utilities Corp. board chair Janice A. Tenorio presides over a CUC board meeting yesterday morning, during which the board unanimously ratified Tenorio’s decision last April 24 to terminate Dr. Dallas M. Peavey Jr. as acting CUC executive director and as deputy director for electric power systems. (FERDIE DE LA TORRE)

The Commonwealth Utilities Corp. board of directors unanimously ratified yesterday the termination of Dr. Dallas M. Peavey Jr. as deputy director for CUC’s electric power systems and as acting executive director.

All five board members present at yesterday’s meeting—chair Janice A. Tenorio, vice chair Donald R. Browne, secretary and treasurer Allen Michael Perez, director Rufo Mafnas, and Commonwealth Economic Development Authority chair Frank Borja— voted “yes” to a motion to ratify Peavey’s termination effective last April 24. Board member Simon Sanchez was absent.

Before the voting, CUC legal counsel Hunter Hunt said they discussed during the board’s executive session that day the recent CUC administrative hearing on Peavey’s appeal. Hunt said the motion to ratify just probably provides a better summary of what was discussed at the executive session.

He said he basically apprised the board of the course of Peavey’s termination and that the board will now take action.

Perez offered the motion to ratify to the extent that Peavey’s termination of requires a vote of the full CUC board directors.

With all five board members voting “yes,” the board unanimously approved Peavey’s termination as acting executive director and deputy director for electric power systems effective April 24.

It was Tenorio, who was then the CUC board chair pro tem last April 24, who fired Peavey. She informed Gov. Arnold I. Palacios and Lt. Gov. David M. Apatang in a letter that same day that she and CUC’s Human Resources staff became aware that Peavey had “exhibited dishonesty and a lack of candor” in his application to serve as deputy director for electric power systems.

In response to Saipan Tribune’s questions after the board meeting yesterday, Hunt said an attorney representing Peavey filed the appeal. Hunt said Peavey, however, did not appear at the administrative hearing and the attorney then withdrew from the appeal. Hunter said the attorney only appeared at the first status conference. He did not identify the lawyer.

Even without Peavey and his lawyer appearing at the administrative hearing, the proceeding continued before hearing officer Jacqueline A. Nicolas.

Hunt said Nicolas, who is a Labor chief administrative hearing officer, served as the administrative hearing officer in Peavey’s case pursuant to a memorandum of understanding between CUC and Labor.

Hunt said the Administrative Procedure Act allows a hearing officer to require the proponent of an agency action to present the case even if it’s uncontested.

Hunt said Nicolas adjudicated the appeal for three days, including the scheduling conference. He said Nicolas has yet to come out with a ruling.

As to the question why the board has to ratify the termination when Nicolas has yet to issue a ruling, Hunt said there was a question as to which rule applies because Peavey’s situation “is a little bit anomalous.”

“He was an acting executive director and so the rules are somewhat silent on the removal of an acting executive director. So to the extent that a full board action is required, the board voted today to ratify the decision of the chair,” Hunter said.

As to the question whether Tenorio can terminate Peavey as deputy director for electric power systems by herself, Hunt said he can’t discuss that as it’s a contractual issue.