CUC, CHCC reach settlement

Gov. Arnold I. Palacios disclosed late yesterday afternoon that they were able to get the Commonwealth Utilities Corp. and the Commonwealth Healthcare Corp. to come to a settlement agreement in order to avoid disconnecting power and water services to the hospital.

Under the settlement accord, CHCC agreed to pay CUC $525,000 per month starting this Friday and the terms are for one year, according to CHCC chief executive officer Esther L. Muña yesterday in response to Saipan Tribune’s inquiry.

“I believe the agreement is fair and sustainable for CHCC,” she said.

Palacios said he and Lt. Gov. David M. Apatang sat down the whole afternoon with both CUC and CHCC in the governor’s conference room and that he is glad that both agencies signed the settlement agreement to resolve CHCC’s arrears for unpaid power, water, and wastewater billings.

With the agreement, CHCC or the hospital will no longer be under threat of disconnection of power and water services, Palacios said.

“We calmed the situation down and really worked for two hours to come up with a solution that is agreeable to both parties,” he said.

Arnold I. Palacios, Esther L. Muña and Janice A. Tenorio

Aside from Palacios, Apatang, and their legal counsel, others present at the negotiations were Muña, CUC board chair Janice A. Tenorio, acting CUC executive director Betty G. Terlaje, CUC director Rufo Mafnas, Finance Secretary Tracy B. Norita, Rep. Blas Jonathan T. Attao (Ind-Saipan), and Sen. Donald M. Manglona (Ind-Rota), among others.

Palacios told the media yesterday morning that the ideal plan is not to disconnect CHCC, but to have a payment plan going forward.

“So I’m just [going to] ask that everybody stay calm and look at the necessities for this community, but also to accept the fact that we owe our utilities and we must come up with a payment plan for that,” he said.

To ignore the $53 million owed CUC—or $25 million plus penalty—is unacceptable and it’s a dereliction of duty, he said.

“We need to be…accountable and responsible. …The hospital is a critical service to our people, [but] we also have to come [up] with an acceptable plan,” Palacios said.

CUC’s plan to disconnect power and water services to CHCC and Department of Public Works last Thursday for failing to pay $53.6 million and $1.12 million in utility billings and late charges, respectively, did not push through. CUC announced Thursday night that it held off the scheduled disconnection following a breakthrough in negotiations.

CHCC’s previous proposal to pay $225,000 monthly was rejected by the CUC board of directors. CUC’s previous proposal was for a monthly payment of $500,000 plus $225,000—for a total of $725,000 each month.