A SAN MIGUEL CORP.-owned power firm told legislators it “welcomes” any proposals to settle its obligations with the Power Sector Assets & Liabilities Management Corp. (PSALM), which its parent company has long disputed.
Jupiter M. Cabaguio, representing South Premiere Power Corp. (SPPC) at a House hearing conducted by the committees on good government and public accountability and on public accounts, said the firm will evaluate any plans to settle the obligations, which PSALM estimates at P245.76 million.
“For the meantime your honor… we will welcome any plans or any proposals to settle this,” he said.
San Miguel Corp. President and CEO Ramon S. Ang has long disputed PSALM claims that its power unit owes money to PSALM, adding that the company, which operates the Ilijan gas-fired plant in Batangas, has adhered to the terms of its Independent Power Plant Administration Agreement (IPPA) awarded in 2010.
The committees were tackling the issue of PSALM’s receivables, with one senior committee member urging SPPC to consider “the public good.”
“It’s very clear (in the) record that SPPC is making money. They issued dividends. I think it’s about time you should reconsider. At the end of the day, you should relay to your (superiors that) what we’re doing here is for the public good,” Representative Luis Raymund F. Villafuerte, Jr., a Deputy Speaker from Camarines Sur said.
In her presentation during a House hearing on Feb. 19, PSALM President and Chief Executive Officer Irene Joy J. Besido-Garcia reported a total of P95.42 billion worth of overdue receivables, as of the end of 2019.
PSALM’s corporate life will end on June 2026. According to Ms. Besido-Garcia, if PSALM fails to collect the unpaid receivables, the national government will take over the job of collecting.
PSALM was tasked to manage “the orderly sale, disposition and privatization” of power generation assets with the objective of “liquidating all (National Power Corp.) financial obligations and stranded contract costs in an optimal manner.”
PSALM’s collections will go towards settling the maturing obligations of the National Power Corp. — Genshen L. Espedido
