The utilities company in the Northern Marianas, the Commonwealth Utilities Corporation says the former governor, Benigno Fitial, acted illegally in signing a deal for a power purchase agreement with a Delaware company.
That company, called Saipan Development LLC, is suing the corporation for scraping the 190 million US dollar deal under which the Delaware company was to provide diesel generated electricity to the utility for a 25 year period.
The CUC says, in its motion to dismiss the suit, that Mr Fitial should have adhered to local procurement laws.
It argues that Mr Fitial, even acting under executive order, could not sign the deal because such an action is not allowed under the territory's laws.
Saipan Development LLC is suing the CUC for contract breaches over the voided agreement.
