San Miguel files plunder raps vs PSALM, TPEC officials

by Leonard Postrado

from Manila Bulletin

San Miguel Corp. has lodged plunder charges against the head of Power Sector Assets and Liabilities Management Corporation (PSALM) and the officers of a private corporation with the implementation of a contract for the Sual power station in Pangasinan, which resulted to revenue losses worth P14 billion.

San Miguel Energy Corp., a subsidiary of San Miguel, lodged plunder complaints against PSALM President Lourdes Alzona; Suguru Tsuzaki, President of Team Philippines Energy Corporation (TPEC); Kochi Tamura, Executive Vice President of Team Sual Corporation (TSC) and several John and Jane Does for violation of Section 3 (E) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act before the Department of Justice (DOJ).

In a 20-page complaint-affidavit, San Miguel Energy Corporation (SMEC) represented by Elenita D. Go claimed that all elements of plunder are present in the case because of the connivance of Alzona with TPEC and TSC by continuing the implementation of a questioned Memorandum of Agreement (MOA).

The controversial MOA was entered into in June 2009 by PSALM with TPEC and TSC, which served as the independent power producer (IPP) for the Sual Power Station.

The said MOA titled “ Memorandum of Agreement in Respect of the Excess Capacity of the Sual Power Station” gave birth to the concept of “ excess capacity” wherein it was agreed that the “ECA ( Energy Conversion Agreement) Contracted Capacity would be 100 MW net per Unit.

The MOA gives TSC the right by or through TPEC, to market, offer, sell and supply the Nominal Excess Capacity to any customer, independent of and without payment of any fee to PSALM or the National Power Corporation.

In June 2009, San Miguel Energy Corporation (SMEC) won the bidding as the SUAL IPP Administrator and was granted the rights to 1,000 MW Net Contracted Capacity of the Sual Power Station.

SMEC alleged that they were not able to get the net contracted capacity of 500 MW per unit because TPEC’s 100 MW nominal capacity was given priority in accordance with the 2009 MOA on Excess capacity.