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12.30.2010

TIS Moment of the Year

While I'm sure we will still be surprised and amazed at everything Saipan, we really feel like this might be a contender for TIS ("This is Saipan") Moment of the Year....Who knows?  We may not be going back to school on Monday after all.  The school's power and water could be disconnected!  TIS!

Govt agencies lose power, water. Central govt owes $2.5M in utilities.
By Moneth Deposa, Reporter
The Commonwealth Utilities Corp. has disconnected the power and water lines of a number of government departments and agencies due to unpaid bills.

Among these agencies are divisions under the Department of Community and Cultural Affairs, whose personnel were sent home early yesterday noon due to the lack of power and water at their workplace.

In a visit to the office of DCCA Secretary Melvin Faisao yesterday, Saipan Tribune saw the closed offices of the secretary's office, the Policy Language Commission, the Child Care Development Fund Office, the Division of Youth and Services emergency shelter, and some offices of federally funded programs such as the Low-Income Home Energy Assistance Program.

Faisao confirmed that CUC crewmembers cut both the water and power lines in his office around 2pm yesterday.

CUC gave consideration, however, to DCCA's other divisions and programs and spared them-for now-from power and water disconnections, Faisao said. These include the Juvenile Detention Unit in Kagman and the Child Protective Unit, both under DYS.

CUC also cut the water connection at the Gilbert C. Ada Gymnasium yesterday. Since the facility cannot be used without water, Faisao also sent home the gym's caretakers.

Saipan Tribune learned that an estimated 90 DCCA employees were placed on administrative leave since yesterday noon and were told to stand by today if they will be called to report for work.

DCCA, which has eight divisions under it, is under the Executive Branch and its utility consumption falls under the branch's accounts and billing.

Saipan Tribune learned that this was the first time DCCA lost its power and water.

If the situation last for days, Faisao said this will affect the department's programs, including federally funded ones that have regular funding allocated for utilities.

Among the initiatives that will be affected are the payment processing for child care recipients, the tenants for foster care providers, translation notices of the government, and backlogs in many offices.

According to CUC executive director Abe Utu Malae and chief financial officer Charles Warren, a disconnection notice was first issued to these agencies prior to cutting the power and water lines.

They said CUC is required by law to issue disconnection notices but it decides to first work on “non-critical loads.”

Warren said the central government owes CUC nearly $2.5 million to date, which reflects delinquent payments for August, September, and October.

He claimed that DCCA is not the only department affected by the disconnections. He said about 50 accounts were on the disconnection list. He did not elaborate.

“We did notify the CNMI government in advance.We had a meeting with the lieutenant governor today and we talked about payments and arrears. They're working on something to get the power back [tomorrow],” he told Saipan Tribune.

Under review

Press secretary Angel A. Demapan confirmed yesterday the meeting between the administration and CUC. He could not say, though, if the central government will immediately pay its arrears so that affected offices could return to normal operation.

“The lieutenant governor did meet with CUC today to discuss this matter. In view of this development, the administration is now conducting a thorough review of outstanding billings for the Executive Branch and the finances of the affected accounts. It is not known yet when payment will be made or what arrangements will be proposed to address this matter,” said Demapan.

He said the findings of the ongoing review “will largely dictate the necessary steps the administration will take to best address the issue.”

CUC earlier disclosed that it has yet to collect nearly $4 million from its biggest customers, resulting in its own cash-flow problems. These customers include the central government, the Public School System, and the Northern Marianas College-the Top 3 biggest clients with the highest delinquent accounts.

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