PNOC Exploration Corp., the upstream oil and coal arm of state-run Philippine National Oil Co., has defended its own ranks from the plunder charges filed against them for allegedly engaging in anomalous coal transactions worth $5.36 million.
In Friday’s paid advertisement issued by newly installed PNOC EC president and CEO Pedro A. Aquino Jr., the company slammed the filing of the charges with the Ombudsman’s office at a time when the company is preparing to undertake a public offering.
“The accusations hurled against PNOC EC’s former and current officers at this time are questionable and deplorable especially considering that the company, with the support of the Departments of Energy and Finance, is planning to undertake an additional public offering of its shares in compliance with the Philippine Stock Exchange’s 10-percent minimum public offering rule,” the ad read.
PNOC EC is targeting to offer 218 million primary shares, or an equivalent of 9.79 percent, of its total share holdings in the fourth quarter to comply with the mandatory minimum public float. At present, the company’s public float stands at only 0.21 percent, while all the remaining shares are held by the government through PNOC.
Aquino and the rest of the PNOC EC management pointed out that the “brash manner by which these [issues] are brought to the public light” was saddening.
The move was also deemed as a direct “disregard not only of an individual’s right to his reputation earned through years of valuable public service but also of the company’s good name that was built on the integrity and hard work of its people.”
To recall, Crismel Verano, former chair and director of PNOC EC, filed the plunder charges on July 31 against current PNOC EC president Antonio Cailao and former PNOC EC president Rafael del Pilar and five other top PNOC EC officials.
Based on previous news reports, Verano claimed that these officials entered into a coal supply agreement in 2009 with Wilson International Trading Private Ltd. for the importation of coal from Indonesia, “even without any assured demand or need requirements for coal supply.”
The coal was reportedly offered to the state-run National Power Corp., which refused to purchase the said shipment given its high level of coal inventory at that time. The said shipment was eventually taken up after Del Pilar supposedly asked the late Energy Secretary Angelo Reyes Jr. to accommodate the coal shipment to prevent PNOC EC from incurring further costs for the docking of a vessel at port beyond its scheduled departure date.
PNOC EC allegedly lost more than $2.2 million from that single transaction, Verano claimed.
Also, Wilson International had filed “an arbitration case for demurrage claims and losses against PNOC EC” when it was paid only $4.8 million, short of the $5.36 million that was agreed upon.
In its paid advertisement however, PNOC EC pointed out that all issues relating to the questioned coal supply agreement it forged with Wilson International were long settled “through binding arbitration.”
The state firm said that the International Chamber of Commerce’s International Court of Arbitration rendered in October 2011 a decision in favor of PNOC EC. The chamber also dismissed all of Wilson International’s claims.