Government, private sector ‘conspiracy’ eyed in Mindanao power shortage

Business Mirror
WEDNESDAY, 18 APRIL 2012 20:54 FERNAN MARASIGAN / REPORTER


THE solution eyed by the government to resolve the power crisis in Mindanao could have been the result of the alleged conspiracy between President Aquino, Energy Secretary Jose Almendras and the Aboitizes, a senior member of the House of Representatives said on Wednesday.


“Matagal ko nang iniisip kung bakit pilit nang pilit si Noynoy at Almendras na coal at diesel plants pa din ang gamitin sa Mindanao na magpapataas ng singil sa kuryente samantalang may mga alternatibo naman at ibang solusyon sa krisis. Dahil ba malaki ang magiging pakinabang dito ng mga Aboitiz na matagal nang malapit sa mga Aquino at dating boss ni Almendras? It looks like a Triple A conspiracy to me,” said Party-list Rep. Teodoro Casiño of Bayan Muna.


The Aboitizes own Therma Marine Inc. whose two power barges were largely blamed for the power outages in Mindanao in 2010, when they entered into a contract with the National Grid Corp. of the Philippines, making prices unaffordable to Mindanao’s power distributors.


In the midst of the power outages now hitting Mindanao, Aboitiz Power Corp. wants to construct a 300-megawatt coal-fired power facility in Davao.


The family of the current president, chief executive officer and director of Aboitiz Power Corp. Erramon Aboitiz is a known Aquino ally and former employer of Almendras. Then-President Corazon Aquino appointed Erramon’s father, Ernesto, as president of the National Power Corp. (Napocor) in November 1987. The elder Aboitiz served as president of Davao Light and Power Co. from 1970 to 1987. He was vice chairman of Aboitiz Power Corp. and served as its director from 1998 until his death in 2010.


During the term of the mother of Mr. Aquino, blackouts became sporadic and the Aboitizes were suspected of benefiting from the outages as they owned a company supplying power generators.


Erramon Aboitiz was among the select 34 businessmen who accompanied Mr. Aquino in his seven-day visit to the United States in September 2010. A week before, Mr. Aquino switched to full capacity and operation the 42.5-megawatt hydropower plant owned by Aboitiz Power Corp. in Sibulan, Santa Cruz, Davao del Sur.


Prior to his appointment, Almendras served as treasurer for both Aboitiz and Company and the publicly listed Aboitiz Equity Ventures. He was appointed president and chief executive officer of City Savings Bank, also owned by the Aboitiz Group.


Casiño said his office is looking into reports that the Mindanao power crisis is being used to maximize the profits of big power providers, especially the Aboitiz group, with the government as an accomplice, as evidenced by DOE circular DC 2012–03-0004.


“I fear that this may be another case of favoring his kaibigan, kaklase at kabarilan [KKK] at the expense of Mindanao,” said Casiño.


Party-list Rep. Emerenciana de Jesus of Gabriela said that it appears Mr. Aquino is acting as a “spokesman” for the private sector seeking to control the power industry in Mindanao.


“Wala pa man, tumatayo nang spokesman ang Pangulo para sa mga pribadong sektor na interesadong bumili sa power industry ng Mindanao. Para siyang tinderong naglalatag ng paninda sa baratillo,” said de Jesus on the President’s statement that he is considering the entry of private investors in ensuring a sustainable power supply in Mindanao.


“Government neglect is accountable for the Mindanao power crisis, because while government still controls some 82 percent of Mindanao power capacity, it did not invest in additional power-capacity to meet the growing demands of the region. It totally abandoned its responsibility to develop and implement power development projects for Mindanao, but instead focused on the privatization of the power sector,” she added.