‘Muña stalled CFO hiring for 2 years’

It’s been two years since the Commonwealth Healthcare Corp. began looking for a permanent chief financial officer but the effort has been stalled because interim CEO Esther Muña refuses to hire one, according to board chair Joaquin Torres.

“The recruitment has been ongoing for two years already. By the CEO’s own admission, there are a number of applicants who filed applications, most of whom meet the minimum qualification for the position. At least 32 applications have been submitted to CHCC, yet until now she had not complied with the mandate of the law,” said Torres.

Of the 32 applicants, he said three are from the island, all of whom were not chosen for the post.

“We have at least three local applicants who have applied for the job but she refused to hire them. These three meet the education requirements but not the work experience in healthcare finance. The person she plans to hire from Hawaii allegedly possesses the requisite work experience but not the education requirement,” added Torres.

With these revelations, Torres says the current situation does not make sense.

“It does not make a lot of sense since a majority of the 32 applicants for the position meet the minimum qualification requirement for the position. We are now experiencing devastating consequences as a result of the CEO’s continuing failure to comply with Public Law 16-51. Also, a CFO is needed not only to maximize revenue but also to prevent waste and abuse of funds,” said Torres.

Muña held the position of COO/CFO from Oct. 12, 2012, to April 29, 2013. Cora Ada then was named acting CFO on April 30, 2013.

Official correspondence released

Torres also released yesterday the official correspondence the board received from Ada indicating her decision to step down from the acting position, belying Muña’s assertion that the report is untrue.

Saipan Tribune reported last week Ada’s decision to step down as acting CFO for the corporation, as confirmed by Torres. However, Muña dispelled the information on Monday as not true.

Documents obtained from the board indicated that board members received an email from Ada on March 10 informing trustees of her decision.

“Chair, with the submission of these [financial] reports, I would like to advise that I have discussed my intent to step down as an interim CFO [with] our CEO. I will continue and finish up the budget for [fiscal year] 2015 due on April, 2014, to [Office of Management and Budget] and ultimately continue to assist and fully set our federal programs into the corporation and my last day as an interim CFO would be on April 30, 2014,” Ada’s email to Torres stated. Muña was copy-furnished with the email.

The March 10 email from Ada enclosed the revised financial report for fiscal year 2013 and the draft audit from Deloitte and Touche.

In a Marianas Variety article on Monday, Muña denied that Ada is stepping down as CFO, adding that Ada will remain as interim finance chief until a permanent one is hired.

Torres pointed out yesterday that it was clear in Ada’s email that she’s stepping down as acting finance chief, and not “resigning” as an employee of the corporation.

He reiterated the reasons why the corporation needs to get a permanent CFO.

“Cora has been acting CFO for almost a year now. I believe she cannot continue to serve in an acting capacity because she does not meet the minimum qualification for the job. I want people to know, however, that Cora is one of the most dedicated and hardworking employee of the corporation. She is always there when you need her. The continuing failure of the CEO to hire a CFO that meets the minimum qualifications has resulted in undesirable consequences,” said Torres.

“[N]o monthly financial statements have been issued as required by law for almost the entire period of fiscal year 2013; CHCC has incurred a reported $6 million deficit for fiscal year 2013. We have $17 million reported accounts receivable which have not been collected, and CHCC has financial records that do not meet accounting and recordkeeping standards,” disclosed Torres.

He said that once the results of the financial audit for CHCC is finalized and made public, “then you will understand where I am coming from.”