Garin sues Leviste, SPSB execs over idle power franchise
The country’s energy chief pressed on with the government’s legal action against Batangas Rep. Leandro Leviste, alleging that his company Solar Para Sa Bayan (SPSB) failed to deliver electricity to remote and underserved areas despite securing a legislative franchise.
Energy Secretary Sharon Garin filed a complaint against the 33-year-old Leviste and several directors of SPSB, including Antonio Legarda Sr., Benjamin Legarda, Antonio Legarda Jr., Hazel Iris Lafuente and Irma Flaminiano.
They were accused of failing to meet the obligations set by the 25-year nonexclusive franchise granted to the company during the term of former President Rodrigo Duterte. Under the franchise, SPSB was expected to develop microgrids and tap renewable energy sources to supply electricity to remote, unviable, unserved or underserved communities.
In the complaint, Garin said the company, through its board of directors and corporate officers, had “neglected [and] failed” in its commitment to provide reliable power for the target households.
“When the legislative franchise was granted in 2019, SPBC [Solar Para Sa Bayan Corp.] had no single project or operation to speak of,” according to the document seen by reporters on Thursday.
“Worse, during these years, SPBC continuously established and provided renewable energy for profit through several groups of companies under the umbrella of Solar Philippines Power Project Holdings Inc. (SPPPHI), a corporation that is 100-percent owned by Leviste,” it added.
‘Badges of fraud’
The complaint cited provisions of the Republic Act No. 11659, or the Public Service Act, which makes liable “any person, including juridical persons, who knowingly and willfully neglect, fail or omit to do” an undertaking covered by the granted franchise. Violations carry a fine not exceeding P2 million or a prison term of up to 12 years.
The Department of Energy (DOE) chief said failure to perform these duties were already “badges of fraud that defeat public convenience and warrant the piercing of the corporate veil, thereby holding the respondents personally liable.”
Garin also noted SPSB’s deployment of a 2-megawatt hybrid solar-diesel power plant and the issuance of power bills to residents in Paluan, Occidental Mindoro, in 2018, even without regulatory approvals.
In February, the Energy Regulatory Commission said SPBC may face up to P150 million in new penalties as regulators began a probe into its alleged illegal and excessive power charges in the province.
The DOE also imposed a penalty of P24 billion on SPPPHI for failing to deliver more than 11,000 MW of renewable energy capacity.
These were put under the spotlight as Leviste made some serious allegations in the House of Representatives. He once claimed that lawmakers received a P2-million each as Christmas bonus, and also raised questions on public works spending.
Sets a precedent
Sought for comment on Garin’s filing, Leviste dismissed the complaint as “extremely weak.”
He noted that the complaint came as he called for an investigation into the supposed connection of Executive Secretary Ralph Recto to CWS Rep. Edwin Gardiola and their alleged links to public infrastructure contractors in Batangas and small town lottery operator Refresh Gaming Corp.
“I am pursuing this even though someone told me that Recto is supposedly the one directing Garin … However, the scrutiny of Recto’s connection to Gardiola should not end,” Leviste said in a message.
“I would also like to point out: this sets a precedent for future administrations to file nuisance complaints against officers and directors of public utilities in the Philippines,” he added.
In a Viber message to the Inquirer, Recto responded to Leviste’s comments: “Those issues are for [the] DOE and [the] DOJ [Department of Justice] to determine, not the [Office of the Executive Secretary].” —WITH REPORTS FROM PNA AND KENNETH CHRISTIANE BASILIO
