Peavey: Yumul’s action was outright unprofessional

“When you owe $1.2 million, you must pay.”

This was the response Friday of then-acting Commonwealth Utilities Corp. executive director Dr. Dallas M. Peavey Jr. when asked about the statement of acting Department of Public Works secretary Ray N. Yumul that he questions why DPW was being “targeted” among other governmental customers of CUC.

Peavey, who has since been terminated from his job, denies targeting DPW and stated that they responded to Yumul’s final notification to CUC that they’re working to repair and replace roads that were damaged by CUC projects.

He informed Yumul in a letter dated April 19 that CUC recently awarded two contracts for islandwide paving restoration in the amount of $885,600 to complete pending road repairs as well as perform future repairs. The notice of intent was issued on April 5, 2023. CUC anticipates a notice to proceed to be issued in May 2023.

Last April 12, Yumul issued the final notification to CUC over its alleged repeated violation of not restoring road that it had cut up or dug up for its projects. Yumul addressed the notification to Peavey for CUC to address the violations for its road trenching projects that, according to DPW, create significant safety concerns for the public.

Last Wednesday, Peavey issued notices of disconnection to DPW and Commonwealth Healthcare Corp. due to unpaid power and water services amounting to $1.2 million and $53.6 million as of March 31, 2023, respectively.

Dallas M. Peavey Jr. and Ray N. Yumul

Last April 19, Peavey wrote Yumul to express disappointment upon reading DPW’s final notification in the April 14 publication of Saipan Tribune. Peavey said that Yumul issued the final notification without first sending a letter or other direct contact from him.

“While [CUC] acknowledges numerous outstanding road restoration projects as the result of failures on behalf of previous CUC leadership, publication of such statements prior to engaging in constructive dialogue is outright unprofessional and can only be assumed to be the means of advancing personal agenda or compensating for inadequacies at the Department of Public Works,” he said in the letter, a copy of which was obtained by Saipan Tribune.

Peavey said the projects that Yumul questioned are budgeted expenditures and therefore reliant upon the collection of monies that are owed and due to CUC in order to perform essential business activities, including road restoration.

He said the fact is that DPW has failed to pay its utility bills for services provided by CUC.

Peavey said the current past due balance owed by DPW, as of March 31, 2023, equates to $1,122,565.

Moreover, he said, 16% of CUC road repairs are caused by DPW cutting into and/or through CUC water and sewer piping.

Peavey said that, since accepting responsibilities at CUC, he has set a priority to fulfill their obligations despite the refusal of DPW and other government agencies at performing their contractual and fiduciary responsibilities.

In the meantime, Peavey said, water and wastewater crews are actively inspecting and addressing temporary patches to minimize impact to the traveling public.

He said during this process CUC staff have regularly informed DPW of their progress in obtaining outstanding permits, evaluating work, and developing and awarding contracts with the intent of maintaining a professional and cooperative working relationship, again, in spite of DPW’s failure to pay its utility bills which are used to perform pavement repairs.