Torres begins CUC board’s restructuring

Gov. Ralph DLG Torres accepted yesterday the resignation of all gubernatorial appointees on the Commonwealth Utilities Corp. board, taking the next step in his plan to restructure the troubled agency.

Torres on Thursday asked for the resignation of all gubernatorial appointees on the board, which is among the recommendations made by the House Committee on Public Utilities and Communications. Firing the board was the other suggestion.

The resignation of the board, except for Commonwealth Development Authority chair Ike Perez, gives the Torres administration a free hand to choose his appointees. Most CUC board members were appointed by former governor Eloy S. Inos.

Torres informed CUC executive director Gary Camacho yesterday that he had received and accepted the resignation of all gubernatorial appointees on the board. The resignations were effective yesterday.

“As I move forward with the immediate appointment of board members to fill these vacancies, I thank you for continuing the important work of providing essential services to our community,” said Torres.

Saipan Tribune tried to get a comment from Camacho but the executive director was in meetings to address important issues concerning CUC.

CUC board chair Adelina Roberto (Saipan), vice chair Eric San Nicolas (Tinian), secretary Albert Taitano (Rota), treasurer Joe Torres (Saipan), and David Sablan Jr. (nonresident) are the other members of the CUC board.

CDA, being a shareholder of CUC, has one CUC board slot; that seat is occupied by Perez.

Torres, in a statement, said the entire utilities agency, one of the autonomous corporations of the CNMI government, is more than just the board.

“It is important that we remember that CUC…is a body of 400 hardworking people who dedicate their professional lives each and every day to the benefit of our community,” said Torres.

The administration said they already have a short list of close to 10 individuals. Torres now faces the laborious task of narrowing the names that would comprise the new board and help CUC executive director Gary Camacho steer the agency.

The administration declined to give further details of those on the short list but they are hoping to act on it quickly and submit the final names to the Senate so they could begin the process for the confirmation hearings.

Torres commended the entire CUC organization, which has continued to work for its ratepayers despite the controversy that surrounds the board.

“Through all its ups and downs, the employees of CUC are true public servants that want the best for the islands they serve. I am proud of them and the work they do and hope to support them as we restructure the board’s composition,” said Torres.

“It is my commitment to our Commonwealth that a new direction will be taken by a new board with the ratepayers’ best interests in mind and with the shared goal of addressing our long term utility needs,” he added.

Torres is also set to name the new composition of the Commonwealth Public Utilities Commission, which closed down its office six months ago. It is not yet known if lone commissioner Dave Guerrero would be retained or not.

The Office of the Public Auditor, in a report released early this month, also suggested that CUC’s financial standing would be better without the presence of an active board.
 
Brief background

Torres’ move to ask for the CUC board’s resignation was prompted in part by events that transpired last month, after the board approved a controversial deal that involved the planned purchase of an engine.

It was discovered that the planned purchase did not go through the proper procurement process, with some board members reportedly having conflict of interests. The board awarded the contract to General Pacific Services Marianas Inc.

Some board members were reportedly related to winning bidder GPSM. Sen. James V. Espaldon of Guam was involved as the spokesperson and representative of the GPSM contract.

CUC board member Taitano, based on GPSM’s articles of incorporation, was registered as agent for the service of legal process. It was also later revealed that Philip Roberto, GPSM’s vice president, was chair Roberto’s stepson.

The board cancelled the project after the House of Representatives and the Senate held consecutive oversight hearings on the matter.