Thursday, October 19, 2017

PSALM, DOF scored over ‘contradicting figures’ on power sector liabilities



Published By Myrna M. Velasco

The Power Sector Assets and Liabilities Management Corporation (PSALM) and Department of Finance (DOF) are both lobbying for the use of the P198 billion Malampaya fund to retire the power sector’s stranded liabilities, but the Senate is extremely disappointed over the fact that they have not even done serious task to reconcile their figures before seeking Congressional approval on such proposal.
Senate Committee on Energy Chairman Sherwin T. Gatchalian noticed that the figures presented by the DOF, during his interpellation on the agency’s 2018 budget, differed from the numbers provided by PSALM.
As he reproached both PSALM and the finance department on their ‘contradicting figures’, he also raised doubts how can the remaining PSALM liabilities be settled effectively if competence is lacking even at the level of calculation or book entry on the claimed magnitude of stranded contract costs and stranded debts.
Gatchalian cited that DOF’s figures placed “PSALM’s total outstanding liabilities at 722.5 billion, out of which P275 billion consist of stranded contract costs and stranded debts.”
Conversely, he noted PSALM’s calculation of “total outstanding obligation at P491 billion, of which P223 billion comprised of its stranded contract costs and stranded debts.”
Exasperated by that dissembling of figures, Gatchalian stressed that “PSALM’s job is to liquidate the debts (of the National Power Corporation) and to liquidate this debt, the first step is to know how much they owe. But they don’t even know the exact amount, so how can they pay it?”
Beyond concerns of lax ‘record keeping’, the lawmaker also cautioned officials of the Executive Department “to address ambiguities surrounding the utilization of the P198 billion Malampaya fund to ensure that the remaining funds will be spent in a transparent manner in accordance with the law.”

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