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MANILA. Congressional
investigations on alleged irregularities in the power sector show a poor track
record in finding solutions to the problems, our check of previous Senate investigations
reveals.
Not
one of the investigations has led to legislation. Moreover, our research shows
that past resolutions calling for probes into various energy issues, including
the National Power Corporation's increase in generation rate, were merely archived.
Will
the latest effort, a Joint Congressional Power Commission, go the way of past
attempts at fixing power problems?
The
JCPM began its probe Monday on alleged irregular business practices of the Manila
Electric Company which supposedly is partly responsible for high electric rates.
Monday's
hearing took more than seven hours before it adjourned, an indication of the high
level of interest of legislators on power rates and related issues, considered
politically sensitive.
Sen.
Miriam Defensor Santiago, chair of the energy committee, has asked the various
parties to submit documents within 15 days, after which JCPM will renew its hearings.
Santiago, one of the President's staunchest allies in the Senate, has chaired
the energy committee since 2004.
In
the 13th Congress, she did not act on any of the four resolutions that were filed
with her committee.
IMPSA
DEAL
In
one case in the past, two Congresses investigated an alleged anomaly in the energy
sector, with no conclusion to show for it.
It
took a jailed congressman, former Manila Rep. Mark Jimenez, to actually pin down
the big fish, in the person of former justice secretary Hernando "Nani"
Perez. This had to do with the alleged bribery of Perez in the approval of a power
plant of an Argentinian company.
In
the 11th Congress, the Senate investigated the approval and endorsement of the
National Power Corporation of the Build-Rehabilitate-Operate-Transfer contract
of the Argentine-based Industrias Metalurgicas Percarmona Sociedad Anominas (Impsa)
for the Caliraya-Botocan-Kalayaan hydroelectric power project.
The
probe was based on two resolutions separately filed by then Senators Franklin
Drilon and John Osmena that the awarding of the project to Impsa appeared to violate
the Build-Operate-Transfer law. The two solons suspected that the contract was
a sweetheart deal.
The
resolutions were filed in 1998 but it was only the following year that a hearing
was scheduled. Two hearings were held by the Senate committees on accountability
of public officers and investigations (Blue Ribbon) and energy, in Sept. 1999
and in Feb.2000.
For
some reason, no other hearings were held on the Impsa project, and no committee
report was submitted. It should be noted however that the Impsa project had the
blessings of then President Estrada. The Impsa controversy also spawned one of
the stories that earned Estrada's ire-against the Manila Times when it described
him as an "unwitting ninong" of the project.
REVIEW
OF NAPOCOR
In
March, 2000, a joint resolution authored by Senators Juan Ponce-Enrile, Gregorio
Honasan and Juan Flavier was filed seeking a review of all power supply contracts
concluded by Napocor with private independent power producers. The resolution
questioned the move of the government "to shift to power consumers of the
country the burden of paying and discharging the financial obligations of Napocor"
to the IPPs.
The
senators questioned the propriety of Napocor agreeing to pay for the power contracted
with the IPPs "whether or not the power is consumed at an average price of
$76 per MWh. The resolution identified these onerous contracts with IPPs as a
cause of Napocor's financial problems, forcing it to resort to privatization.
The
Senate Blue ribbon and the energy committee, chaired by Senator Miriam Defensor-Santiago
and later by Enrile, held three hearings in April 5, June 14 and Sept. 20, 2000.
The
probe was apparently abruptly terminated when the "juetengate" scandal
exploded and the Senate was reconstituted for Estrada's impeachment trial.
NO
COMMITTEE REPORT
Investigations
on the power sector resurfaced in Oct. 2002, under the 12th Congress, when then
Senator Sergio Osmena delivered a privilege speech exposing the alleged "serial
scams" at the Napocor and the transmission companies.
The
Osmena expose revived the investigation on the alleged irregularities in the Impsa
contract, but this time with a new twist. Millions of dollars in bribe money supposedly
exchanged hands although the solon was careful not to name names.
Less
than a month after Osmena's expose, Senator Panfilo Lacson filed Resolution 477
identifying the personalities behind the approval of the Impsa contract. In his
resolution, he sought a Blue Ribbon investigation into the alleged $14 million
payoff that Impsa supposedly extended to Malacanang officials in exchange for
the approval of the project. The Impsa contract was approved by President Arroyo
only four days after she took power from Estrada.
But
like previous probes, the Senate investigations died a natural death. A total
of nine hearings were held by the committee on government corporations on Osmena's
privilege speech - from October 2002 to Feb. 2003 but it has no committee report
to show for its work. Interestingly, Osmena was the acting chair of the committee
on government corporations at the time of the probe.
On
the other hand, the Blue Ribbon held only one hearing on Lacson's resolution.
But then, the Blue Ribbon chair at that time was Senator Joker Arroyo, a close
ally of Arroyo.
MORE
RESOLUTIONS
In
the 13th Congress, records showed an abundance of resolutions calling for investigations
of the power sector.
In
Sept. 2004, then Senator Ramon Magsaysay Jr. filed Resolution No. 80 seeking an
inquiry on the 98-centavo increase in Napocor's generation rate granted by the
Energy Regulatory Commission. Magsaysay's resolution, which was referred to the
committee on energy, sought to find out the rate hike's implication on business
and industrial competitiveness.
In
Nov. 2004, Senator Mar Roxas sought a reinvestigation on the propriety of the
government's move to assume a portion of Napocor's financial obligations. His
resolution was referred to the committee on energy.
On
May 2005, Magsaysay asked the Blue Ribbon and the energy committees to look into
the propriety in the rehiring of retired Napocor executives after paying them
retirement benefits amounting to P119.4 million.
Just
before the 13th Congress ended, Osmena filed another resolution seeking inquiry
on "alleged illicit activities of Napocor officials that endanger the government's
privatization and restructuring reforms n the electric supply industry."
The resolution was referred to the committee on energy and finance.
The
four resolutions were never acted upon and were eventually archived. One explanation
for the Senate's non-action on the resolutions was the composition in the chairmanship
of the committees.
The
previous Blue Ribbon chair was Arroyo, while Santiago, one of the President's
staunchest allies in the Senate, has chaired the energy committee since 2004.
According
to some Blue Ribbon staff, Arroyo refused to investigate anomalies that could
put Malacanang in a bad light. | 
