Solon asks Aquino to stop privatization of power assets

A party-list lawmaker on Tuesday urged President Benigno Simeon Aquino III to stop the bidding of the government's remaining power generation assets. Bayan Muna Rep. Teddy Casiño also asked the President to suspend top officials of the National Power Corp.(Napocor) and Power Sector Assets and Liabilities Management Corp. (PSALM) because of the alleged irregularities in the said agencies. “He should also preventively suspend officials led by PSALM Acting President and (Chief Executive Officer) CEO Ma. Luz Caminero and Napocor President Froilan Tampinco and secure all the documents and electronic files of all service contracts, loan agreements and reports of the two government corporations to determine and pursue accountability of current and past officials," he said. In a press statement, Casiño said the alleged fire sale of government assets and the perks received by PSALM officials have further saddled the government with debts that will be paid by the public. “President Aquino should stop PSALM from evaluating the bids for the Naga (Cebu) Power Plant Complex that happens on Monday, August 18," he said. Casiño also joined legislators from Leyte and Samar who oppose the privatization of the Unified Leyte Geothermal Power Plants (ULGPP) because the move will only retain, if not raise, electricity rates in the said areas, Casiño said. The Naga Power Plant Complex in Naga, Cebu is composed of the Cebu Power Plant Complex 1 and 2, both with a 55-megawatt (MW) capacity and the Cebu Diesel Power Plant 1 with a 39-MW capacity. On the other hand, the ULGPP in Tongonan, Leyte has a 640-MW capacity of 640 MW. “It appears that former and currently retained officials in the PSALM and NAPOCOR have enriched themselves via illegal bonuses, hazard pay, night differentials and monetization of leave credits for each government power asset privatized," Casiño said. The lawmaker said this has contributed to the ballooning of stranded debts to P471 billion despite the aggressive privatization efforts of government power plants all across the country. “It is also brazen for PSALM officials to have batted for the debt recovery under the cover of universal charges in the electric bills by inserting cost components (employee bonuses, consultancy fees and operating expenses amounting to at least P217.3 million) that do not fall under the definition of stranded debts as mandated by RA 9136 or the Electric Power Industry Reform Act (EPIRA) of 2001," Casiño said. Earlier, the Commission on Audit (COA) reported about PSALM’s lavish spending which reportedly includes P1.98 million loyalty awards given to 49 employees aside from media relations expenses. COA said the bonuses and other expenditures were allegedly tucked into its P471-billion stranded debt recovery which have been disallowed or fiercely questioned by the state auditor in its report. Casiño said Energy secretary Rene Almendras may have been misinformed when he said, in an interview with the media, that PSALM’s debts stand at $16.5 billion— including the transferred straight debts of NPC and $9.5 billion financial obligations to independent power producers— despite the $10.625-billion proceeds from the privatization of the NAPOCOR. “It appears that Sec. Almendras is not being given the whole picture. It would be better if Pres. Aquino stops the privatization of the remaining power assets pending an investigation into the series of anomalies in the energy sector," he said. Earlier, Eastern Samar Rep. Ben Evardone filed a resolution seeking an investigation into the finances of Napocor and PSALM as alleged anomalies are being hurled at these two agencies. –VVP, GMANews.TV