SMC: PSALM resorts to bullying to mask shortcomings
San Miguel Corp. (SMC) said Power Sector Assets and Liabilities Management Corp. (PSALM) was “bullying” the conglomerate as the state firm continued to pressure SMC to settle an alleged debt related to the Ilijan power plant deal, which was still pending in court.
In a statement on Tuesday, SMC said the state-run firm was wielding its power indiscriminately to mask its shortcomings.
“This is bullying. They cannot just dictate on what works best for them. We have to follow due process,” SMC president and COO Ramon S. Ang said.
He added that PSALM could not unilaterally decide on the issue, which should be left for the courts to decide.
“We continuously honor our obligations. In return, we only ask that they respect the sanctity of our agreement,” Ang added.
SMC is reacting to PSALM’s insistence on pursuing collection efforts against SMC over the Ilijan power plant, saying that they also need to service their own obligations.
SMC, through its South Premiere Power Corp. (SPPC), reiterated that it had already paid P289.1 billion, or $6.19 billion, in various fees as of end April 2019 for the 1,200-megawatt Ilijan power facility in Batangas, contrary to claims that it owed PSALM P19.75 billion in unpaid dues.
PSALM has also already gained P34.75 billion from its administration agreement with SPPC, SMC said.
“We are just wondering what PSALM did with all the money they made out of our administration agreement on Ilijan since 2010? The public has the right to know, we all have a right to know how they are running things there,” it said.
“These are funds the government should have put to good use such as vital public services and social programs,” SMC said.
The company added that the amount it paid for capacity fees alone, equivalent to about $2 billion, was already enough to pay for the 20-year-old power plant. A brand-new plant with the same capacity could be built for so much less.
SMC, through subsidiary SPPC, filed a case against PSALM in 2015 after it terminated the 1,200-MW Ilijan independent power producer administrator deal due to differences in computation of generation charges.
SMC, however, recently gained the upper hand as the Mandaluyong Regional Trial Court (RTC) denied PSALM’s motion for reconsideration, saying it found no strong and compelling reason to reverse its earlier ruling.
Separately, the Supreme Court also decided in favor of SPPC when PSALM challenged the Court of Appeals’ (CA) decision to affirm the writ of preliminary injunction filed by SPPC in the Mandaluyong RTC, SMC said.
PSALM, it said, “failed to show that the CA committed reversible error in the challenged decision and resolutions as to warrant the exercise of the court’s discretionary appellate jurisdiction.”
