The Power Sector Assets and Liabilities Management Corp. (PSALM) has finally admitted that it lost $3.5 million in investments when the Lehman Brothers investment bank went belly up three years ago in the biggest bankruptcy case in US history, according to Eastern Samar Representative Benjamin Evardone.
Evardone said “the cat is now out of the bag” after PSALM placed a newspaper advertisement offering a P20 million contract for legal services to recover its investments from Lehman Brothers Special Financing (LBSF).
“I exposed this bad investment with Lehman a year ago and PSALM officials vehemently denied it. This ad is proof that it squandered its funds with its risky investments. PSALM should explain to the public why it invested in Lehman when its primary function was to use the proceeds of the sale of Napocor (National Power Corp.) assets to pay its debts so that this will not be passed on to the consumers,” he said.