Ombudsman’s move to prosecute Cusi, other DOE officials for the Malampaya deal ‘a step toward justice’–Gatchalian
Senator Sherwin Gatchalian yesterday praised the Office of the Ombudsman for its decisive action in holding energy officials accountable for the controversial acquisition of Chevron’s 45 percent stake in the Malampaya gas project by UC Malampaya.
“The decision is a clear affirmation of what we have been saying all along – that the Chevron-UC Malampaya deal was riddled with irregularities and failed to protect public interest,” Gatchalian said in a statement.
“The move to hold these officials accountable is a step toward justice and a reminder that public servants must always act in the best interest of the Filipino people,” he stressed.
In its decision dated Nov. 29, 2024, the Ombudsman found probable cause to charge former Department of Energy (DOE) Secretary Alfonso Cusi and other DOE officials with violating Section 3(e) of RA 3019 or the Anti-Graft and Corrupt Practices Act.
The Ombudsman also directed that the corresponding information be filed with the appropriate court against Cusi and nine other DOE officials.
Read: Malampaya given status of ‘national significance’
Lack of technical and financial capabilities
The Chevron-UC Malampaya deal, sealed through a Share Sale and Purchase Agreement (SPA) in Oct. 2019, allowed UC Malampaya to acquire Chevron’s 45 percent stake in the gas field despite the company’s lack of technical and financial capabilities to meet its obligations under the Malampaya Service Contract.
The Ombudsman found the respondents guilty of “acting with evident bad faith, manifest partiality, or gross inexcusable negligence,” noting that they conducted the evaluation with undue haste.
In holding Cusi and the other respondents accountable for the questionable deal, the decision reversed and set aside the criminal aspect of the complaint in the Jan. 22, 2024 joint resolution of the Ombudsman, which previously found no probable cause to indict respondents.
The latest decision by the Ombudsman came after Gatchalian filed a motion for reconsideration on Oct. 15, 2024.
Records show that respondents allegedly disregarded the requirements during the financial evaluation by basing the evaluation on UC38 LLC’s unsigned and unaudited financial statements.
According to Gatchalian’s office, UC Malampaya is the transferee-assignee, not UC38 LLC, which is also a subsidiary of Udenna Corporation, like UC Malampaya.
“UC Malampaya should have already been disqualified outright as a transferee/assignee but respondents proceeded with the evaluation, noting that respondents conducted the evaluation with undue haste despite the fact that DC2007-04-0003 allows necessary extensions,” the senator’s office further disclosed.
Senate resolution calling for accountability
The Malampaya gas project is a key energy source for the Philippines, providing a substantial portion of the country’s electricity needs.
“This is not just about the people directly involved—it is about protecting the nation’s energy security and ensuring that the trust of the Filipino people in public institutions is upheld,” he stressed.
Gatchalian reiterated his longstanding call for accountability regarding the deal’s approval, emphasizing that the Senate has expressed its stance on the issue.
“The Senate, in February 2022, adopted a resolution urging the filing of appropriate criminal and administrative charges against Cusi and other DOE officials who evaluated and recommended the approval of this questionable deal,” he said.
Read: Senate reso seeking raps vs Cusi, DOE execs for Malampaya deal sent to Ombudsman
