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Fitial: OIA OKs redirection of $3.5M CIP money to CUC
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Posted on May 16 2012
By Haidee V. Eugenio
Reporter
Reporter
Gov. Benigno R. Fitial said yesterday that the U.S. Interior’s Office of Insular Affairs approved his request to redirect $3.5 million in capital improvement project funds to the Commonwealth Utilities Corp., but the Saipan Tribune has yet to obtain from either the Fitial administration or OIA a copy of OIA’s actual letter as of press time.
Press secretary Angel Demapan said the governor received the letter yesterday.
Fitial wrote a revised letter to Interior Assistant Secretary for Insular Affairs Tony M. Babauta on April 16, reducing the amount of CIP funds he wants redirected-from $4.35 million to $3.5 million-as well as to change the “redirected use” from paying utility bills and paying the salaries of doctors and nurses to that of helping CUC comply with a consent order. That letter “supersedes” his Feb. 18 letter.
The administration said yesterday these redirected funds will be used to assist CUC in complying with requirements of the U.S. Environmental Protection Agency to meet consent order requirements.
The funds are from prior grant awards-from grant years 2006-2008 associated with the Puerto Rico dump closure project.
In total, the CNMI has transferred in excess of $16.8 million in grant funds to CUC over the past several years.
“By transferring grant funds from the central government to CUC, we are able to assist them in meeting these legal mandates and improve the protection of our environment,” Fitial said in a statement. “Additionally, by using federal grant funds to meet these requirements, we are able to ensure that this financial burden is not passed on to the consumers.”
The governor added that the administration is working with CUC wherever possible to use innovative programs to reduce high utility costs.
OIA earlier said that CIP funds “cannot be used for operational expenses of the CNMI government.”
Fitial’s first request letter wanted to use over $4.35 million in redirected CIP funds to pay for public school and hospital “utility costs,” “housing allotments for doctors and nurses,” and hospital “payroll allotments.”
The CNMI has $52 million in unspent CIP funds.
At $52 million, the CNMI has the highest amount of unspent CIP funds among territories.
