Groups want alleged anomalies in Transco privatization probed

Consumer and militant groups on Monday urged both Houses of Congress to investigate the alleged anomaly in the privatization deal for the National Transmission Corporation (Transco). Consumer group People Opposed to Warrantless Electricity Rates (Power) and the Bagong Alyansang Makabayan (Bayan) said the allegations made by opposition senators of conflict of interest in Transco’s privatization needs to be examined by the Senate and the Lower House to protect consumers who will ultimately bear the price of the privatization. The groups noted that the planned privatization of Transco is bad enough and the allegations of a rigged bidding process makes it even worse. Senators Aquilino Pimentel and Jamby Madrigal on Sunday said Jose Ibazeta, president of Power Sector Assets and Liabilities Management Corp. (Psalm) which handles the bidding, is a former business associate of two of the bidders in the Transco sale – the Aboitiz and Razon groups. "We challenge the Energy Committee of both the Senate and Lower House to investigate these serious allegations," Bayan secretary general Renato Reyes Jr said. “We challenge the chair of the Energy Committee in the House of Representatives, Rep. Mikey Arroyo, to inhibit himself from any investigation that may be conducted jointly or separately by the committees of both chambers," he added. For his part, Gani Tapang, Power convenor, said consumers will bear the effects of the privatization of Transco, as the winning bidders will try to recover its investments in the shortest possible time. “(Transco’s) infrastructure provides a highway for electricity and other uses. Whoever controls it can impose a ‘toll fee’ on users of this highway. In the hands of private interests, there is always the potential for abuse in the name of greater profits," Tapang said. Reyes shared this sentiment, saying it is one of the reasons why groups are opposing Transco’s privatization. "The reason why Transco should remain state-owned is because it has strategic importance for the economy. The argument that the government needs to sell Transco in order to raise funds for debt payments is a grossly myopic view of the problem and will lead to a bigger burden for consumers," Reyes said. - Amita Legaspi, GMANews.TV