The Senate resolution which sought to file administrative and criminal charges against Energy Secretary Alfonso Cusi and other Department of Energy (DOE) was transmitted Friday to the Office of the Ombudsman.
Cusi said he is “ready to face any and all charges” and “explain the actions” of the DOE.
“Once again, for the record, I assure everyone that I am ready to face any and all charges brought against me in the proper forum. I am prepared to explain and prove that all of the actions of the Department of Energy regarding the sale and transfer of shares of Malampaya are legal, aboveboard and in accordance with the powers and mandate of the department,” Cusi in a statement said.
Together with his lawyers, Senator Sherwin Gatchalian, chairperson of the Senate committee on energy, brought the resolution to the Ombudsman.
The resolution showed that the charges were in relation to the sale of the 45-percent stake of Chevron Malampaya LLC in the Malampaya gas field worth $565-million to UC Malampaya. The said resolution was based on Gatchalian’s privilege speech which enumerated the violations of Cusi and 11 other energy officials.
Gatchalian said the energy officials committed gross neglect of duty and grave misconduct in violation of the Administrative Code of 1987 and violated Section 3 (e) and 3(j) of the Anti-Graft and Corrupt Practices Act.
According to Cusi, “it is unfortunate that, in the course of the Committee hearings, Senator Gatchalian had chosen to lend his ear to those adversarial business interests. It was obvious in these hearings that Senator Gatchalian has sought to undermine the DOE’s ability to conduct a comprehensive evaluation of the proposal covering the said sale of shares.”
The charges stemmed from approving and recommending the approval of the Chevron Philippines-UC Malampaya transaction despite the lack of financial qualification of UC Malampaya, its non-compliance with the required documents under DC 2007, and the violation by the DOE of its own circular, Department Circular 2007-04-0003.
“At the end of the day, it is undisputed that SC38 or the Malampaya Deep Water Gas to Power Project continues to operate seamlessly and optimally despite the sale of shares. I am elated that I now have the chance to be given my day in court,” Cusi said.
The Senate resolution said the unauthorized “mestizo” application of DOE’s financial test allowed UC Malampaya to acquire a participating interest in Malampaya despite flunking the financial evaluation was in violation of the said circular.
The filing of charges, Gatchalian said, would give involved individuals a chance to “defend themselves in the proper venue.”
Gatchalian earlier delivered a privilege speech, accusing Cusi and other key DOE officials of being “criminally and administratively liable for graft, gross neglect of duty, and grave misconduct” for “railroading” the approval of the sale of the participating interest of Chevron in Malampaya gas field.
“When the DOE stretched the application of DC 2007 it affected, among others, the evaluation of our Financial Services. Based on the memorandum we submitted, you will find that there were two entities evaluated: UC 38 which is the new name of Chevron, and of course UC
Malampaya,” DOE Energy Resource Development Bureau Director Cesar de la Fuente said.
Aside from Cusi, among those being called to be held accountable are Undersecretary Donato D. Marcos, OIC Undersecretary Robert B. Uy, Assistant Secretary Gerardo D. Erguiza Jr., Assistant Secretary Leonido J. Pulido III, Director Cesar G. Dela Fuente, Director Arthur N. Tenazas, Director Araceli A. Santos-Soluta, OIC Assistant Director Guillermo H. Ansay, Chief Thelma Cerdeña, Chief R.J.A. Delos Santos, and Demujin F. Antiporda.