SMC to appeal plunder case vs PSALM

A power unit of conglomerate San Miguel Corp. said Monday it will appeal a decision with the Justice Department on the plunder and corruption charges the company filed against officials of state-run Power Sector Assets and Liabilities Management Corp. and independent power producer TeaM (Philippines) Energy Corp.

SMC Global Power Holdings Corp. president Elenita Go informed the Philippine Dealing & Exchange Corp. of the DoJ resolution dated Oct. 25, 2017 partially granting the petition for review filed by  Team Energy president Suguru Tsuzaki and TeaM Sual Corp. executive vice president Kochi Tamura.

San Miguel Energy Corp. is set to file a motion for reconsideration with the Justice Department on the resolution granting a petition for review.  The DOJ resolution ruled that the “assailed resolution is reversed and set aside”  in so far as the conduct of preliminary investigation.

The records of the case were submitted to the Office of the Ombudsman for disposition.

“SMEC shall be filing a motion for partial reconsideration of the said motion,” SMC Global said.

SMEC asked to DOJ to prosecute former PSALM president Lourdes Alzona in 2015 for plunder in connection with the alleged P14-billion loss over a 2009 contract with Team Energy for the Sual power plant in Pangasinan.

SMEC filed a complaint against Alzona, now PSALM officer-in-charge, for allegedly violating  the Anti-Graft and Corrupt Practices Act. Also impleaded in the complaint were  Tsuzaki and Tamura.

San Miguel said the government was deprived of a 200-megawatt capacity of the 1,200-MW Sual power plant under the deal between TeaM Energy and PSALM.  

TeaM Energy operates the Sual plant as its independent power producer, while SMEC manages the plant’s electricity output as the independent power producer administrator.

TeaM Energy disputed SMEC’s allegations saying the MOA was “legal and above board” and it had no  priority dispatch over the excess capacity.

SMEC, however, said if there was any excess capacity from the Sual plant, it should be the government that should benefit and not the IPP of the plant.

SMC Global said that in connection with the civil complaint filed by SMEC with the Pasig City Regional Trial Court Branch 71 on July 5, 2017, SMEC consigned with the court the additional amount of P16,185,640.73 corresponding to the proceeds of the sale of the excess capacity to the Wholesale Electricity Spot Market for the billing period from July 26, 2016 to Aug. 25, 2016.

“SMEC also filed a motion to admit second supplemental complaint in relation to said consignation. To date, the total amount consigned with the court is at P491,242, 288.90,” it said.

SMEC earlier claimed it was not able to get the net contracted capacity of 500 megawatts per unit of the Sual coal-fired power plant in Pangasinan because TeaM Energy’s 100-MW nominal capacity was given priority in accordance with the 2009 memorandum of agreement on excess capacity.

SMEC said TeaM Energy illegally benefited from the excess capacity to the detriment of the government and SMEC.

It said that from November 2009 to September 2013, TeaM Energy was able to gain P17.2 billion from the P2.82 million MWh generated as the “excess capacity” using the MOA settlement formula.


Topics: San Miguel Corporation
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