Mindanao calamity funds ‘overpriced,’ Erap says

The government budget to address the power shortage in Mindanao is overpriced by about P3 billion, raising fears of another “graft scheme" by the Arroyo administration. This was bared Wednesday by former President Joseph Estrada, who alleged that the power crisis in Mindanao, the second largest island in the country, was “concocted" by the Arroyo government to lay the ground for fraudulent schemes. “The government is not interested in solving the problem of its own making. The crisis is to give them the reason to defraud the people of yet another graft scheme," said Estrada at a press briefing in Mandaluyong City. Estrada is running for re-election in the May 10 elections amid questions on his candidacy’s legality. In October 2007, the Sandiganbayan convicted him of plunder and sentenced him to a maximum of 40 years in prison. Anomaly seen Citing a study conducted by his team and advisers on energy, Estrada said the government has allotted a total of P5.5 billion budget for a deficit of 160 megawatts. “But why are they preparing for only 160 megawatts when the deficit is 600 to 750 megawatts?" Estrada then asked. He cited a P3.4 billion overprice in the budget because only P2.1 billion is needed to lease power-generating sets to produce 160 megawatts. The discrepancy smacked of corruption, he alleged. To supply the shortage of 600 to 750 megawatts, Estrada said he is estimating that the government would spend P20.6 billion. In his computation, only P7.38 billion is needed to cover the 600 to 750-megawatt deficit at peak load. Estrada was not the first presidential aspirant to express alarm over the use of calamity funds to address the Mindanao energy crisis. Before him, Senators Benigno Aquino III and Richard Gordon said the money could be allotted to fund electoral bids of local politicians in the region. No overprice Malacañang, on the other hand, denied that the government has bloated its allotment so that the excess would be pocketed by politicians. “If he [Estrada] thinks there is an overprice, then he should join in the discussions of transparency groups so he will know there is no overprice," deputy presidential spokesperson Gary Olivar told GMANews.TV in a phone interview. He said the government intends to supply a 700-megawatt shortfall, and not a 160-megawatt deficit as claimed by Estrada, who was convicted of plunder by the Sandiganbayan in 2007. The conviction occurred six years after he was forced to quit the presidency amid corruption charges. State of calamity President Gloria Macapagal-Arroyo placed Mindanao under state of calamity last week to allow the government to use disaster funds in addressing the widespread power outages in the region. The crisis has been blamed on the El Niño weather phenomenon. which has reduced water supply that generate hydroelectric energy on the island. More than half of Mindanao’s energy requirements — or 53 percent — are sourced from dams. Since Mindanao is not connected to the power grid in Luzon and the Visayas, power plants in the two islands are unable to dispatch excess electricity to Mindanao. - KBK, GMANews.TV