State-run Power Sector Assets and Liabilities Management Corp. (PSALM) will offer to investors anew the decommissioned 850-megawatt Sucat thermal power plant, following allegations that the highest bidder in the previous auction had submitted “fake” documents to the agency.
PSALM president Emmanuel Ledesma Jr. confirmed that there would be a rebidding of the Sucat facility, without elaborating on the reason why a new auction will be held, six months after the last one was held.
Genetron International Marketing offered the highest bid of P602 million for the Sucat decommissioned plant in an auction held in March this year.
Part of Genetron’s requirements was to submit a performance bond worth P301 million, following the issuance of the certificate of effectivity.
But PSALM employees, in a petition calling for the removal of Ledesma from office, had alleged that Genetron submitted a fraudulent performance bond in the form of a standby letter of credit supposedly issued by JP Morgan Chase Bank.
The employees also claimed that JP Morgan had already confirmed, in a letter to PSALM, that the performance bond was not authentic. This, however, was not allegedly reported back to the PSALM board.
In July this year, Ledesma reportedly acted on the Sucat privatization and issued the notice of termination of the asset purchase agreement, thus delaying the privatization of the Sucat plant.
It was the inaction of Ledesma, his alleged move of withholding critical information over Genetron’s issuance of a fraudulent performance bond, and breach of confidentiality, that prompted the agency’s employees to formalize the petition and submit it to the PSALM board.
“The employees of PSALM wish to petition the PSALM board for the removal of PSALM president Emmanuel R. Ledesma Jr. from office and disqualification from re-appointment in view of his transactions which are grossly disadvantageous to the government; lack of sound business principles and judgment; noncompliance with PSALM’s manual of approvals and established rules and regulations; and alarming governance issues such as inefficiency, poor leadership skills, abuse of discretion, distrust on employees and unethical behavior,” the petition read.
The Sucat privatization was only one of the controversies hurled against the PSALM president.
Ledesma, for his part, said in a text message Monday that he was not aware of the petition.