CNMI Representative Vincent Aldan recently introduced House Bill 24-53, which seeks to exempt CUC from the 1% public auditor fee, forgive outstanding balances, and implement a cost-based audit recovery system with mandatory reporting and penalties for noncompliance.
At a legislative hearing, CUC Executive Director Kevin Watson urged lawmakers to pass the bill, stating it aligns with CUC’s mission to provide reliable utility services while ensuring fiscal responsibility. “The current public auditor fee places financial strain on our operations, diverting funds from critical projects and water, wastewater and power systems,” said Watson. He added that savings from the exemption could be redirected to restoring power generation and other vital services.
The bill states that the fee, passed on to consumers, often exceeds the value of services received. Under CNMI Public Law 3-91, all government entities—except the Public School System and Commonwealth Ports Authority—must pay the fee, which goes to the general fund and can be spent by the Office of the Public Auditor without further appropriation.
