12 Jun 2009

CNMI to sue over dialysis project cost overrun

3:14 pm on 12 June 2009

The Lieutenant Governor of the Northern Marianas, Eloy Inos, says the government will sue the design contractors and other parties involved in the dialysis centre project after its costs ballooned to 22 million US dollar which is four times the original price.

Mr Inos says the Office of the Attorney General is now preparing the case, but the government might also hire a private law firm to represent the government in the civil suit.

He says at least six million dollars has been spent on architectural and engineering design contracts alone and the government wants to recover at least some of this.

The contract was first awarded nearly nine years ago and there have been a number of modifications since then.

The Governor, Benigno Fitial, who was the Speaker of the House of Representatives when the project started, says it is a fiasco because of a series of design changes.