Calvo wants autonomous agencies to comply - KUAM.com-KUAM News: On Air. Online. On Demand.

Calvo wants autonomous agencies to comply

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by Mindy Aguon

Guam - The Guam International Airport Authority and Port Authority of Guam may be disputing a $12 million invoice they both received from the Department of Administration, but Governor Eddie Calvo says his cabinet members will follow the law. The Calvo Administration is enforcing a law that's been on the books for more than a decade that requires the Port, GIAA, and the Guam Power Authority to $875,000 to the General Fund each year. 

Last month DOA billed the agencies for payments that date back to 1998.  But the airport contends it isn't obligated to pay the appropriation because it doesn't comply with bond covenants. The Port, too, is disputing the invoice by saying previous governors never met with prior boards to negotiate a set amount it would be required to give the General Fund each year.

"We intend to sit down and work with autonomous agencies to see what we can do so they comply with the law but understanding too that there are repercussions financially but it's important these are mandates by law and they should be complied with," said Calvo.

The law also required similar payments from the Guam Telephone Authority before it was privatized. The measure also prevents the autonomous agencies from raising rates to pay the General Fund.

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