The Department of Energy is in talks with the Department of Justice and the Office of the Solicitor General to collect an estimated P24 billion in penalties and other charges from Solar Philippines Power Project Holdings Inc.
The DOE canceled 33 contracts of SPPPHI, representing a total potential capacity of 11,427.83 megawatts, after finding that only about 2 percent of the projects were completed.
“We will collect. But if they refuse to pay, then we bring it up to the SolGen level or the DOJ level so they determine what’s the good legal recourse that we have,” Energy Secretary Sharon Garin said in an interview with Bilyonaryo News Channel’s “Agenda.”
Garin said the agency informed SPPPHI, led by Rep. Leandro Leviste, about the cancellations and the corresponding penalties but has not received a reply. She also questioned the continuing role of Leviste in SPPPHI and the listed SP New Energy Corp. while serving as a public official.
She noted that while SPNEC—now majority-controlled by the MVP Group—has some “technicalities on the connection to the grid,” it remains a compliant company.
“Now, that doesn’t mean that the ownership structure is compliant with the law,” Garin said. “Because I think Solar Philippines still has shares in that company. And basically the beneficial owner of this company is one person. It’s a public official that should have divested before.”
The energy chief added that the DOE cannot intervene in the franchise of Solar Para Sa Bayan (SPSB) since it has not filed any application with the agency.
“As far as we’re concerned, there was nothing happening with that company,” Garin said. “What’s the point of giving a franchise if you don’t do anything about it? You might as well give it to others.”
Leviste, in a separate interview with BNC, said he closed down SPSB about four years ago and divested his interest. He added that he is no longer involved in the day-to-day operations of SPPPHI.
“I’ve also disclosed that I’m in the process of increasingly being dis-involved from all these matters even more,” Leviste said. He explained that SPSB stopped operating due to legal and financial issues, noting he lost money attempting to serve commercially unviable areas where local providers legally challenged his business.
Garin countered that Leviste should have informed and sought approval from Congress before shutting down SPSB.
“This franchise is supposed to energize our far-flung areas,” Garin said. “I would leave it to Congress to determine if there was any violation, whether it’s the performance or the non-divestment.”
Meanwhile, the House committee on legislative franchises will have to wait for a resolution to be filed before it can actually take up and review the franchise granted by Congress to Batangas Rep. Leandro Leviste’s solar power business.
Negros Occidental Rep. Jeffrey Ferrer, the panel’s chair, said his panel is ready to tackle the matter but a resolution or a privilege speech has to be approved in plenary and refer to his committee first as part of legislative process.
Ferrer said would like to look into the matter but “proper procedure has to be observed.”
He said he wants the matter to be investigated “so the people will know, the public will know what happened….If there are violations, we will terminate the franchise,” he said.
House Deputy Minority Leader Antonio Tinio said the matter has to be investigated by Congress as part of its oversight function.
Tinio said the issue is a “legitimate” concern as it involves the government’s whole renewable energy program, including those who were granted franchises related to Leviste’s solar power business.
Leviste for his part welcomed the planned investigation and vowed to cooperate with his fellow legislators.
