Congress directs power agency to stop Masinloc buyout
THE Joint Congressional Power Commission on Thursday ordered the Power Sector Assets and Liabilities Management (Psalm) to terminate the Masinloc power deal with YNN Pacific Consortium even if the company manages to pay the P227 million down payment by August 6.
"They (YNN) cannot even pay between now and Sunday because in my personal view what we are witnessing now is the passage of the winding down period (for the termination of the contract) pursuant that the document that they signed that Psalm has not extended the deadline for payment, so therefore even if YNN can still pay by Sunday that will no longer affect the termination of the contract," said Senator Miriam Defensor-Santiago, the commission chairperson.
Santiago questioned Psalm's extension of payment for YNN considering that it indeed has no money to settle the upfront payment after winning the bid to acquire the 600-megawatt Masinloc power plant in Masinloc, Zambales, the country's biggest coal-fired power plant.
"Why YNN could not pay, so that alone is already an indication that there was fraud in the transaction because it made promises it could not keep. So we have to rebid the whole thing. Even if there was an extension, it still has no money. It's playing games with the government," the senator said.
Santiago also wondered why Psalm has failed to discover that YNN has not enough money to pay the down-payment. "The commission is convinced there was pressure (to extend the payment) because ordinarily a person in good faith will not act this way - a buyer says I have the money to give for the down payment and yet he fails to do so. That's anomalous," she added.
She said that the YNN, instead of looking for money to settle the upfront payment after it was given an extension, the firm chaired by Sunny Sun inked a deal with Malaysian firm Ranhill Berhad to buy its shares.
"It is also widely suspected that Mr. Sun has the capability to pressure Meralco (Manila Electric Company) to provide a supply contract to go with the sale contract over Masinloc because you know a businessman will not buy a power plant unless he is assured he has a market or a buyer for his power, that's the supply contract," Santiago said.
Finance Secretary Margarito Teves, during the meeting, said there is legal basis that Psalm will accept the payment assuming that the amount is available "today" but said YNN and its new partner Ranhill Berhad of Malaysia have not expressed any indication at the moment that they will come out with the upfront payment. (REC/Sunnex)
"They (YNN) cannot even pay between now and Sunday because in my personal view what we are witnessing now is the passage of the winding down period (for the termination of the contract) pursuant that the document that they signed that Psalm has not extended the deadline for payment, so therefore even if YNN can still pay by Sunday that will no longer affect the termination of the contract," said Senator Miriam Defensor-Santiago, the commission chairperson.
Santiago questioned Psalm's extension of payment for YNN considering that it indeed has no money to settle the upfront payment after winning the bid to acquire the 600-megawatt Masinloc power plant in Masinloc, Zambales, the country's biggest coal-fired power plant.
"Why YNN could not pay, so that alone is already an indication that there was fraud in the transaction because it made promises it could not keep. So we have to rebid the whole thing. Even if there was an extension, it still has no money. It's playing games with the government," the senator said.
Santiago also wondered why Psalm has failed to discover that YNN has not enough money to pay the down-payment. "The commission is convinced there was pressure (to extend the payment) because ordinarily a person in good faith will not act this way - a buyer says I have the money to give for the down payment and yet he fails to do so. That's anomalous," she added.
She said that the YNN, instead of looking for money to settle the upfront payment after it was given an extension, the firm chaired by Sunny Sun inked a deal with Malaysian firm Ranhill Berhad to buy its shares.
"It is also widely suspected that Mr. Sun has the capability to pressure Meralco (Manila Electric Company) to provide a supply contract to go with the sale contract over Masinloc because you know a businessman will not buy a power plant unless he is assured he has a market or a buyer for his power, that's the supply contract," Santiago said.
Finance Secretary Margarito Teves, during the meeting, said there is legal basis that Psalm will accept the payment assuming that the amount is available "today" but said YNN and its new partner Ranhill Berhad of Malaysia have not expressed any indication at the moment that they will come out with the upfront payment. (REC/Sunnex)
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