Proposal urges govt agencies to give 5 pct. to CUC

Several government agencies are being urged to direct 5 percent of their budget allocation for fiscal year 2016 as payment for their obligations to the Commonwealth Utilities Corp.

The proposal letter, signed by Sen. Sixto K. Igisomar (R-Saipan) and dated May 20, was sent via email to the Commonwealth Healthcare Corp., the Department of Land and Natural Resources, Homeland Security and Emergency Management, and the Public School System.

“The Senate Standing Committee on Public Utilities, Transportation, and Communication is considering a proposal that would mandate up to 5 percent of the allocated budget to your respective office as payment for the outstanding accounts due to the CUC,” Igisomar’s letter said. Igisomar chairs the committee.

Rep. Antonio P. Sablan (Ind-Saipan), chairman of the House Committee on Ways and Means, was also notified regarding the letter’s intent.

Igisomar said the 5 percent proposal is a way to help CUC out of its financial distress.

He cited that “while we are requesting the input and feedback from departments in our proposal to ‘force-pay’ CUC out of their requested budget, so as to assist CUC with its present uncontrollable outstanding accounts receivable to the CNMI government that continues to affect its financial condition and its cash flows,” his office is working with CUC on a detailed report for the departments.

The letter further cited CUC’s recent announcements of “potential load shedding and rolling blackouts” as an alternative option to their current financial problems due to nonpayment of utilities by the government.

“It is imperative as legislators that we consider any means possible to try and alleviate any additional financial and emotional burden to our community due to the negligence of the government,” Igisomar’s letter said.

Although the proposed 5 percent allocation “may not be sufficient to cover the deficit of the CNMI government, some amount of payment to the CUC is a better alternative than the unfair alternative that is being considered as a result of the continued nonpayment by the government,” Igisomar said.

The senator is also soliciting the departments’ regarding the proposal and is urging them to coordinate with his committee.

The lawmaker said he would like to hear from the departments on what their plans are or what the departments intend to do to cover the associated costs of their CUC current monthly billing and outstanding billings, if there are any.

He would also like to know the steps that the departments have taken to minimize the amount of utility usage without affecting operations, and steps the departments have taken when it comes to alternative energy.

Igisomar is asking each department to provide the information by June 1.