Solon wants probe on Napocor, PSALM finances

By Lilybeth G. Ison

MANILA, July 30 (PNA) - A lawmaker has filed a resolution at the House of Representatives to look into the financial condition and funding of energy-related government owned and controlled corporations such as the National Power Corporation (Napocor), the Power Sector Assets and Liabilities Management Corporation (PSALM), and the schedule of payments of Napocor’s stranded debts and stranded contract costs, and PSALM’s personnel salaries and other incentives.

Eastern Samar Rep. Ben Evardone on Wednesday said that recent reports bared that hefty and irregular disbursements of salaries, bonuses and night shift differentials have been allegedly included as part of stranded costs and debts of the Napocor.

Stranded debt refers to an unpaid financial obligation of NPC that has not been covered by proceeds from the sale of its power assets.

The estimated stranded cost of an eligible contract is calculated every year as the difference between the contractual payment obligation and the revenue earned from the sale of contracted energy.

Evardone said these financial obligations would be later passed on to consumers.

"The Filipino people have in the past suffered the ills of various graft and corrupt practices by unscrupulous individuals," he said.

"In line with the austerity measures of the present administration, it is paramount to inquire into these serious allegations of exorbitant and irregular disbursements," he added.

Evardone said the goals of the Energy Power Industry Reform Act (EPIRA) or Republic Act 9136 have not been met nine years after its passage as the huge debts of the Napocor remains, power crisis looms and the high electricity rates still hound the people.

He said that House Resolution no. 106 calls for the House energy committee to conduct investigation on the financial condition and funding of government owned and controlled corporations dealing with energy. (PNA)
LAP/LGI