Torres reviews OPA audit report on CUC

Gov. Ralph DLG Torres is now reviewing the Office of the Public Auditor’s audit on the organizational structure of the Commonwealth Utilities Corp.

Torres had just come from the 22nd Micronesian Islands Forum that discusses shared goals, commitments, and challenges with the region’s leaders.

According to a statement from the Torres administration, the Governor’s Office has received the OPA audit on CUC and is currently conducting a “thorough review of its findings.”

“The administration acknowledges that OPA’s findings call for a conversation that needs to be said. CUC plays a critical role in our community’s livelihood and sustainability, and it remains a priority of this administration to effectively address both our current utility and infrastructure challenges and long-term energy capacity needs,” reads part of the statement.

The administration also emphasized the importance of ensuring the delivery of reliable power and water for CNMI residents.

“We share a commitment with CUC and OPA to effectively provide solutions that have the Commonwealth’s long-term needs addressed and the ratepayers’ interests in mind,” said the statement.

The OPA audit cited CUC’s incapability to function as an independent public agency. The audit stated that CUC’s financial standings are better off without the “presence of an active board.”

Although CUC failed to respond to the audit, OPA recommended that CUC’s corporate structure be revised for a better chance at success.

The CUC board’s latest fiasco was the emergency procurement of an 8- to 10-megawatt engine to replace Engine 8 at Power Plant 1. CUC was to award the engine’s procurement to General Pacific Services Marianas Inc. It was later revealed that the company has relations to members of the CUC board, along with a shaky financial background that caused all kinds of red flags to come up.

Despite being warned by the CUC legal counsel and the CUC management, the CUC board still pushed through with the procurement before ultimately dropping its emergency nature altogether after being questioned by both the CNMI House and Senate committees.

Since then, the public has been holding its breath too see what actions Torres intends to take with the board. An invitation to testify in a Washington, D.C. hearing on House Resolution 339, a bill authored by Delegate Gregorio Kilili C. Sablan (Ind-MP) that seeks to increase the number of CW1 slots for the CNMI, prevented Torres from meeting with the CUC board members.

An earlier statement from the Torres administration said that Torres would work on his decision for the CUC board once he returns to the island. Torres arrived from Guam Wednesday night.