Case filed over Malampaya stake sale to Udenna
By Jordeene B. Lagare – October 20, 2021
from The Manila Times
CONCERNED citizens lodged a criminal complaint against Energy Secretary Alfonso Cusi, businessman Dennis Uy, former and current officials of Philippine National Oil Co.-Exploration Corp. (PNOC-EC) and officials of Chevron Philippines Inc. over Chevron’s sale of its stake in the Malampaya gas-to-power project.
In a 42-page complaint, complainants Balgamel de Belen Domingo, Rodel Rodis and Loida Nicolas Lewis alleged the respondents violated Republic Act 3019 or the “Anti-Graft and Corrupt Practices Act.”
According to them, the respondents “acted with gross inexcusable negligence” and “give unwarranted benefits, advantage or preference” to Udenna Corp. and its subsidiary UC Malampaya Philippines Pte. Ltd. in the sale of Chevron’s share and transfer of rights in the Malampaya project.
As a result, the transaction caused “undue injury to the government.”
The complaint was filed before the Office of the Ombudsman in Iloilo City on Monday, Rico Domingo, complainants’ counsel, said during the Liga ng mga Brodkaster sa Pilipinas’ virtual forum held on Tuesday.
The complainants have dubbed themselves as “concerned citizens who advocate for the Filipino people’s right to energy security, which includes the Malampaya Deep Water Gas-to-Power Project, a major energy source, which delivers a fifth of the country’s rapidly growing electricity needs.”
In a statement, the Department of Energy (DoE) said it will answer all the allegations against the agency in the proper venue upon formal receipt of the complaint “The case is speculative, without basis and malicious. The questioned transaction is aboveboard,” said the DoE.
“Clearly, this is harassment, but it comes with the territory, so we will just address it at the proper forum where it was filed,” the agency added.
Cusi is ready to answer all allegations in any forum to bring-out the truth and carry the ends of justice.
“We have yet to receive the supposed complaint filed against Udenna officials before the Office of the Ombudsman and have learned about it only through media reports,” said Udenna Group spokesman Raymond Zorrilla in a text message on Tuesday.
“At the proper time and venue, we will address all allegations raised against the company to prove that everything is done aboveboard,” he added.
Timing questioned
The Energy department questioned the timing of the filing of the complaint before the Ombudsman, adding two of the complainants are Filipino-Americans who were reportedly identified with the movement in the United States seeking to oust President Rodrigo Duterte.
It said “political motivation” may be behind the said complaint since Cusi is also the incumbent president of the ruling party Partido Demokratiko Pilipino-Lakas ng Bayan.
Nonetheless, the department said it remains confident it “would eventually be vindicated” after due consideration of the truth.
The $4.5-billion Malampaya gas project in offshore northwest Palawan fuels about 20 percent of the country’s electricity requirements.
Shell Philippines Exploration B.V. (SPEX), the operator of the gas facility, divested its 45-percent stake in the Malampaya gas project to Udenna unit Malampaya Energy XP Pte Ltd.
Chevron Philippines subsidiary Chevron Malampaya LLC sold its 45-percent interest in the Malampaya gas field to UC Malampaya. Chevron Malampaya was later renamed to UC38 LLC.
The DoE approved the transfer of Chevron Malampaya’s stake to the Udenna unit but it is reviewing the transaction between SPEX and Udenna for the former’s 45-percent Malampaya stake.
Meanwhile, state-run PNOC-EC holds the remaining 10 percent.
“At this juncture, we maintain the acquisition of UC Malampaya Phils. Pte. Ltd. of the shares of Chevron Philippines in Chevron Malampaya LLC is within the parameters of the law,” said Zorrilla.
Aside from Cusi, who is also the ex-officio chairman of the PNOC-EC Board of Directors, PNOC-EC President and Chief Executive Officer (CEO) Rozzano Briguez, former PNOC-EC former officer-in-charge and CEO Lourdes Gelacio and PNOC-EC directors Carlo Magno Aldevera, Farah Cañezal, Alejandro Cobol, Oscar Rabena, Johnny Tuason, Karl Ignatius Young, Avelino Tayag, Albert de la Cruz were named as respondents.
Udenna directors Cherylyn Uy, Henry Albert Fadullon, Chryss Alfonsus Damuy, Ignacia Braga 4th, Leandro Abarquez, Ma. Concepcion de Claro, Wilfredo Placino, Raymundo Martin Escalona were likewise named as respondents.
Also named respondents include Chevron Philippines chairman and president Billy Liu; vice president Modesto Vergel de Dios; and treasurer Maria Emma Ruiz; Chevron Malampaya president Melinda Racela; Shell Philippines Exploration managing directors Rolando Paulino Jr. and Paul Michael Nugent; Raouf Kizilbash, managing director and owner of UC Malampaya Philippines Ltd.; and several John and Jane Does.
The complaint states the government’s monetary losses from the Chevron sale to Udenna is estimated at P21 billion, based on the average 45-percent gross share of Chevron as member of the Malampaya consortium for the years 2018, 2019 and 2020.
The gross monetary losses could double to P42 billion a year if combined with the SPEX deal with Udenna, it added.
