Psalm firm on pursuing San Miguel over Ilijan
Credit to Author: JORDEENE B. LAGARE| Date: Wed, 05 Jun 2019 16:18:36 +0000
THE Power Sector Assets and Liabilities Management Corp. (Psalm) is sticking to its claim that San Miguel Corp. (SMC) still has unpaid dues for operating the 1,200-megawatt (MW) Ilijan power plant in Batangas province.
In a statement on Wednesday, Psalm reiterated that SMC owes the state-led corporation P19.75 billion under the independent power producer administrator (IPPA) contract to manage the facility through South Premiere Power Corp. (SPPC), a unit of SMC’s power arm SMC Global Power Holdings Corp.
“SPPC continues to collect money and profit from the IPPA agreement of the Ilijan Power Plant from its power and electricity customers but underpaying the government for the amount due, Psalm receivables of which has now ballooned to P19.75 billion,” Psalm said.
“SPPC’s default and breach of its contractual obligations, particularly the underpayment of amount due to government was a subject of the Commission on Audit’s adverse findings that also prompted Psalm to terminate the agreement,” it added.
Psalm made the statement amid SMC’s claim it has already settled its alleged debts, an issue still pending before the court, and that the agency should not wield “its power indiscriminately to mask its own shortcomings.”
“This is bullying. They cannot just dictate on what works best for them. We have to follow due process,” SMC President and Chief Operating Officer Ramon Ang said on Tuesday.
Ang said Psalm cannot unilaterally decide on the issue since the auction for the power plant was already sealed years ago and that it should be left for the courts to decide on. “We continuously honor our obligations. In return, we only ask that they respect the sanctity of our agreement,” he added.
SMC, through SPPC, reiterated that it has already paid $6.19 billion (P289.1 billion) in various fees as of end-April for the Ilijan power facility in Batangas, contrary to recent claims that it owes
Psalm P19.75 billion in unpaid dues. Psalm has also already gained P34.75 billion from its deal with SPPC since it started in 2010.
Recently, the Mandaluyong Regional Trial Court denied Psalm’s motion for reconsideration as it found no reason to reverse its previous ruling.
Also, the Supreme Court also favored SPPC when Psalm challenged the Court of Appeals’ decision to affirm the writ of preliminary injunction filed by SPPC with the Mandaluyong RTC.
However, Psalm said it would exhaust all legal actions to resolve the matter before the court. It said it has been questioning the legal jurisdiction and competence of the Mandaluyong RTC over the case.
“Psalm thus intends to timely avail of all legal remedies relative to this jurisdictional matter,” it added.
“PSALM has been questioning the jurisdiction and competence of the RTC Mandaluyong as the Epira [Republic Act 9136 or the Electric Power Industry Reform Act of 2001] granted original and exclusive jurisdiction to the Energy Regulatory Commission over all cases contesting rates and fees, which is what the entire case is all about,” it said.
The state-run firm will also disclose all the documents requested by the court, noting its recent promulgation “did not pass upon the substance of the termination” of the IPPA agreement with SPPC due to breach of contract and default.
The Mandaluyong RTC ruling pertains to the conduct of the modes of discovery which is a stage in the legal proceedings and does not uphold SPPC’s claim relative to the termination of the agreement.
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