Q&A: Abe Utu Malae

Editor’s Note: Abe Utu Malae, the former executive director of Commonwealth Utilities Corp., sat down with Saipan Tribune for an exit interview where he bared his personal plans and views on issues he most deeply cares about: public utilities. He will be leaving Saipan today to return to American Samoa.

Question: You have seen and witnessed the true condition of CUC. What advice do you have for the incoming executive director, the government, and other CUC officials to achieve the goals of an efficient and reliable power, water, and wastewater systems?

Answer: Implement technologies that will result in lower energy costs to utility and its customers; technologies that do not depend on oil, which tends to contaminate the soil, water, and air; for the government to spend grant monies and, if that is not possible, to transfer grants to agencies that can; for OIA [Office of Insular Affairs] to assign technically skilled people to help the CNMI execute programs and projects similar to the way U.S. [Environmental Protection Agency] interacts with CUC on the stipulated orders; promote the apprenticeship program for trades workers and technicians, attract young local workers; and continue the close working relationship with Northern Marianas College, Northern Marianas Trade Institute, and Workforce Investment Agency.

Q: You began with CUC as its deputy executive director before taking over the executive directorship. What would you consider your major accomplishments in both positions?

A: We did not pay any fines to U.S. EPA but tried to work with them no matter how difficult it was, especially under Stipulated Order 2 (oil management); approaching 24/7 water for Saipan; improved reliability of power to customers, especially on Saipan; the Rota power plant is now the most efficient of the five plants (before, it was the least efficient); we hired more and more local workers for power generation to replace nonresident workers; we improved customer service, accounting and financial management of the utility; we had clean audits for 2010 and 2011; we set up a grants and training section that enabled CUC to draw down grant funds within 24 hours in order to pay contractors on time.

Note that bringing on board an excellent team of professionals was critical to reaching objectives and goals. Without that team, we would be retreating. If one more were to leave CUC this year, the utility would collapse.

Also note the biggest improvement in the efficacy of sewer treatment at Agingan and Sadog Tasi plants in the last 10 years.

Q: Many members of the community are asking if you will pursue your political plans in American Samoa?

A: No, I do not plan to run for public office and to become a politician as I have arrived at the sobering conclusion that I do not have the skill set or the stomach for it.

Q: You resigned just as CUC is facing one of its most challenging times (the declaration of a state of emergency). Is it true that you’re disappointed with how the central government wants to intervene in CUC, including the awarding of certain contracts?

A: I am more disappointed with my own performance and for not being politically astute enough to more clearly explain CUC’s situation (e.g., technical matters) to politicians and others of that ilk.

Imagine eight or so years back when the so-called smart water meters were ordered and arrived to much fanfare. The laymen thought, ‘Now all our water problems will be solved.’ Guess what, those meters were abject failures. It is only in 2012 where our goal to reach 24/7 water for Saipan is actually possible-by November. Now imagine how much more difficult it is to implement renewable energy or to privatize power generation? Privatization was attempted in 2007 and it failed miserably with a great loss of credibility for the CNMI. It was not until March 2011 when CUC was legally empowered to issue RFPs for renewable energy technologies.

We have a government/business environment where unsuccessful bidders love to protest, adding cost to business transactions with little value for the rate payer.

Q: Can you describe the present state of your professional and personal relationship with Gov. Benigno R. Fitial?

A: It is fine, thanks.

Q: Were you disappointed when the state of emergency was declared again for CUC?

A: No, I am a practical person. Just deal with the hand you are dealt with and do not whine about it.

Q: What were the greatest lessons you gleaned from working at CUC?

A: Be pragmatic always, and move forward. Appreciate your staff from the lowliest worker to the most skilled professional.