Alaskan Can a Worms

It appears that Alaska's “Big Time” news media along with this state's Congressional delegation are in agreement on a very important issue at hand. And that “in agreement” is through “inaction” this issue and points to the fact that both are afraid to open up a can of worms. Yes, worms do grow in Alaska. Now this “issue” I am talking about is the assault on the U.S. Army which is an assault on the U.S. Taxpayers with respect to the “Privatization” of the military installations' utilities here in the “Last Frontier” - for the time being serviced through contract by an Alaskan Native Corporation. For the news media, for Mark Begich, for Lisa Murkowski, for Don Young, to “act” on this assault, it means picking on the Alaskan Natives - so it is also an assault if they acted, the double edged sword scenario. With that, silence seems golden in this case and that “golden” objective means something towards any future political aspirations. And it is well known that the media does not like to spread bad news about the Alaskan Natives, even if the “bad” is fallout from an Alaskan Native Corporation's affiliation, as the latter is a very powerful economic force and well endowed politically. Not to mention a horde of lawyers readily available to defend. So any negative publicity, it looks bad for many reasons, from tourism to Federal assistance. But the true Alaskan Natives are being taken for a ride by this “Privatization” deal. It is a “good” name and rank basher that is moving full steam ahead, without any intimidation preventing the ulterior motive – which is to make a whole lot of money at any expense. So as long as the delegation and the media remains quiet upon this issue, the CEOs and “outside” investors behind some of this mess continue to collect huge windfall salaries as the shareholders starve. There are millions being made upon this deal between a single entity and the U.S. Government, but just how much of this revenue is making its way to its intended target – the Native Corporation's shareholders? The entire “Privatization” ordeal was tainted in the beginning and continues to be tainted today wherein the Alaskan Natives as well as the American Taxpayers are being robbed. And there may be a reason as to why Begich and Murkowski refuse to budge on this issue, as to do anything that would entice a negative message upon this situation, it could cause harm upon their own political aspirations, as the various corporations' board yields direct influence on the vote, and Lisa and Mark rely on that vote to continue their job for a life-time romance. That's probably their behind the scenes excuse to refuse to intervene. The media has no excuse! Bottom-line, the “Privatization” of the Alaskan military infrastructure has created a monopoly, and that cannot be good for the U.S. Taxpayers. It did not have to become a monopoly, as there came several other qualified entities that placed a bid for a piece of the pie upon this $4-Billion dollar contract – other Alaskan Native Corporations at that! And it was not a take-all-or-none solicitation, so it could have been dissected for reasons of economic sanity – a.k.a. competition. Doyon Limited is 50% owner of Doyon Utilities, which received preferential treatment in the beginning and once their efforts reaped this 50-year lucrative money-making contract, there seemed to be no stopping the momentum that wanted more! But now the ARMY is fighting back, that in itself is good for the taxpayers. It started soon into the contract when Doyon Utilities realized through demand payments from the tax assessor that there was a property tax liability, now that the property was in “Private” hands. So right off the bat, Doyon Utilities management along with legal guidance filed for a tariff increase, telling the Regulatory Commission of Alaska that is was approved already by the Contract Officer, that language in the contract allowed for increases for things forgotten. Now we are talking $-Millions in tax assessments for the utility infrastructure, which is being sold to Doyon through monthly credits upon the “Inception Rate”, or Operating & Maintenance Tariff paid to Doyon. Basically the American Taxpayer is paying Doyon to buy this age old and dilapidated infrastructure and at the same time paying out above and beyond for services rendered. Yes some may argue that there exists years and years of neglect along with lack of maintenance upon this infrastructure, but all the deficiencies that were diagnosed before “Privatization” was finalized, the government agreed to pay for all repairs outside of normal maintenance activities. That is why you'll see all kinds of infrastructure improvements going on at Ft. Wainwright, Ft. Greely and Ft. Richardson. So it was a great day for America to see the ARMY JAG fight back and tell the state regulators that Doyon could not increase the tariff for property taxes, that the millions now due or else would have to come out of the profit margin, which is huge to begin with. And so the ARMY continues to fight back, as it appears there exists major contract disputes over how much this mess is now costing the taxpayers. The word “Taxpayer” is referenced in a few nasty correspondences from the ARMY. See, the team that put the bid together was suspiciously smart and convinced the ARMY that there was no “utility” data available that warranted a “Fixed Bid” award, so Doyon was allowed to use a hypothetical model to come up with this “Inception Rate”, or cost for services rendered. A model is a lame excuse in this case, as there was plenty of information publicly available that would or could have been used to justify a meaningful relationship between the U.S. Taxpayers and Doyon's “Required Profit”. I have requested that Begich and Murkowski get involved, to investigate this “Privatization” contract. Approaching Young would be a waste of my time. But that is a long shot, with Begich and Murkowski, as both had a difficult time trying to find the MIA M.V. Susitna, the ferry “Going Nowhere”. That was a very simpleton test. But this “Privatization” thing is for real and bothersome. When the contract was signed sealed and delivered, with no competition to contend with, the owners of Fairbanks Sewer & Water laughed all the way to the bank. The sewer outfit owns 50% of Doyon Utilities, so is making income from this “Privatization”. For some reasons suspicious, a Canadian investment firm wanted to buy-out the sewer's 50% ownership of the Doyon utility business. Now Fairbanks Sewer & Water is a utility “not in good standing” and also under scrutiny by the state regulatory body for over-charging its Fairbanks customers and a business venture that has limited out with respect to expansion capabilities. Basically, it is a loosing proposition, unless! And that means the lucrative military contract is front and center this lucrative also business deal and sell-off – along with somebody paying dearly for the $50-million in preferred stock option the 10 “White Men” shareholders worked out just before the sale. See, the guy that writes the check from the profits from the contract, well he is the CEO of the venture! The board of directors of Doyon Utilities seems to be controlled by the very same shareholders! Get it, as too what may have gone down behind the scenes? And why would DU request “Regulation” when at the same time it was already in hot water with the regulators, through its affiliation with the sewer boys? A very simple reason, it was a convenient smoke-screen. But once again, the ARMY is doing what they do best, defending. They have asked for no more regulation, as they have come to terms that the “Regulation” ploy was a decoy and was not to the contract benefit but a ways and means to pillage. The contract “creep” in itself has cost the U.S. Taxpayers a lot more loot, and like already mentioned, where have all the profits been siphoned away too? So due a compilation of nothing short a “White Man's” greed mentality, there exists a volatile situation at hand. The delegation should have already been onto this issue. The news media also, but here in Alaska there are areas left untouchable, due matters of negative consequences for speaking up, no matter how much it  may disenfranchises the American Taxpayer. I guess we never learned our lessons from the fallout of the “Corrupt Bastards Club”, then again some may have learned this club's way and means! If this state had a Claire Macaskill at the helm of representation and decency, it would have been a problem with already a solution! Bottom-line, it is time to reassess this “Privatization” mess to make sure the intent behind “Privatization” is righteous and saving the taxpayers from abusive contract manipulation.