‘CUC was grossly negligent’

Sen. Celina R. Babauta (D-Saipan) slammed the previous management and board of directors of the Commonwealth Utilities Corp. yesterday, accusing them of gross negligence by allowing then-governor Ralph DLG Torres to accumulate over $177,000 in arrears in utility benefits from CUC.

Babauta said the arrears, which happened from February 2015 to August 2021, included exorbitant utility benefits for a piggery owned by Torres’ immediate relative that was operating on the private property, and included paying for two residences.

“And I hope that history would not repeat itself at CUC,” said Babauta, who chairs the Senate Executive Appointments and Government Investigations Committee.

By previous administration, the senator was referring to the administration of CUC executive director Gary P. Camacho.

Camacho resigned from his post as CUC executive director last Feb. 21, on the same day when news surfaced that Gov. Arnold I. Palacios is determined to replace him. Camacho, who is on medical leave, earlier told Saipan Tribune that his resignation will take effect at the end of his contract, which is due to expire on March 26, 2023.

Celina R. Babauta

Babauta talked about the impeachment allegations against Torres during the Senate EAGI Committee’s confirmation hearing for the appointment of Pedro I. Itibus to serve as a member of the CUC board of directors.

The senator said the 22nd House of Representatives impeached Torres for theft of utilities.

She said that pursuant to the Commonwealth Code Title 4 Section 8131, the governor may remove an appointed board member for gross neglect or dereliction of duty, breach of fiduciary duty, conviction of a felony, or mental or physical incapacity.

On Nov. 24, 2021, Torres said at one month he saw a CUC billing that was extremely high, so he called Camacho to express concern about the billing. Torres said he asked Camacho to look into the high water billing, then asked him to make sure that they put a separate water meter and to have each meter calculated the right way, meaning there is a government rate and there is a residential rate.

Torres emphasized that the government has not paid a penny on the private property that has a piggery because that comes out from the other account.

He also explained about a utility account registered to his sister that was paid in the amount of $36,069 by the government for power usage from January 2015 and September 2018.

Torres said his sister used to live in that Koblerville house, so her name is on the billing. He said when he won as lieutenant governor and moved in, CUC said that he had two choices—either to disconnect or have it under his name and then charge him a reconnection fee, or just submit a letter from his sister authorizing him to use the Koblerville house under her name with authorization. He said that’s why CUC was billing that residence to his sister because his sister gave him authorization to live there.

On May 18, 2022, the Senate acquitted Torres of the six Articles of impeachment brought by the House, finding him not guilty of corruption and neglect of duty.