PSALM sends 14 firms final demand for P1.9-billion payment
By Rea Cu – July 17, 2019
from Business Mirror
THE Power Sector Assets and Liabilities Management Corp. (Psalm) has sent out final letters of demand for payment to 14 firms with overdue obligations totaling P1.931 billion.
In a statement issued on Tuesday, the Department of Finance (DOF) reported that in the final demand letters sent by Psalm, the firms were given 10 days from receipt of the demand to pay their arrears.
Psalm President and CEO Atty. Irene Besido-Garcia said that Psalm will take legal steps against firms that fail to heed the final demand and pay their overdue obligations.
“For years, these companies have evaded the collection efforts of NPC [National Power Corp.] and Psalm, causing extreme prejudice and serious damage to Psalm and the government. Under President Duterte’s administration, there are no sacred cows. We will not hesitate to file cases against these firms and their officers if the arrears are not paid soon. We need to protect electricity consumers who end up subsidizing the cost of these firms’ nonpayment,” Garcia said.
According to the DOF, entities with long-overdue obligations include a hotel, a state university, a local government unit (LGU) and a polyethylene plant.
Their outstanding obligations include: unpaid power bills, deferred accounting adjustments, unpaid automatic cost recovery mechanism charges, value-added taxes, interest payments and penalty interests.
Finance Secretary Carlos G. Dominguez III, who chairs Psalm’s board of directors, and Energy Secretary Alfonso G. Cusi, who is ex-officio board member, were furnished copies of the final demand letters.
Broken down, the NPC Alliance Corp. has arrears amounting to P611.36 million over a 10-year period; Canlubang Sugar Estates with P517.56 million; Abra Electric Cooperative Inc. with P505.32 million covering a period of over three years; and the Philippine Economic Zone Authority (Peza)-Mactan Economic Zone with P74.93 million in arrears covering a period of over eight years.
Letters were also sent to the Sunrise Paper Production Inc. with P29.05 million in arrears covering a period of over 15 years; Clark Power Corp. with P67.10 million covering a period of over 16 years; and First Bay Power Corp. with P31.36 million for obligations covering a period of over six years;
The local government of Pantabangan in Nueva Ecija—for the account of the Pantabangan Municipal Electric Services—owes Psalm a total of P38.55 million covering over a six-year period; the Diversified Ecozone Corp. with P23.32 million in arrears covering a period of over 11 years; and the Waterfront Airport Hotel & Casino with P8.46 million covering a five-year period.
Other entities that have received final demand letters from Psalm were First Bukidnon Electric Cooperative Inc. (Fibeco) in the amount of P10.897 million; Isarog Pulp and Paper Company Inc. with P5.251 million; Maria Cristina Chemicals Inc. (formerly Platinum Metals Corp.) with P4.99 million; and Mindanao State University with P3.313 million.
In May this year, Dominguez instructed Psalm to relentlessly pursue collection efforts against independent power producer administrators and electric cooperatives with long-overdue accounts with the Psalm, and use all remedies available to protect the rights of the government and the Filipino people.
“All these borrowing costs could have otherwise been utilized by the government for the construction of public-school classrooms or to build roads and bridges,” Dominguez said.
