MANILA2kbet, Philippines — While lawmakers quizzed the National Grid Corporation of the Philippines (NGCP) about its ties to Chinese companies, a lawmaker insisted that the corporation has complied with the provisions of its congressional franchise.
During the hearing of the House of Representatives committee on legislative franchises, Cagayan de Oro 2nd District Rep. Rufus Rodriguez said that the Bureau of Internal Revenue (BIR) had previously stated that NGCP has been paying its tax liabilities, and therefore, an investigation is no longer needed.
“The BIR in the ways and means hearing clearly stated that NGCP has been paying all the tax liabilities of the company, and this was confirmed by BIR chief,” Rodriguez said during the motu proprio hearing to review NGCP’s franchise.
Article continues after this advertisementRodriguez also asked why a hearing was being conducted when even Energy Regulatory Commission (ERC) chairperson Monalisa Dimalanta said that the NGCP has complied with its tax responsibilities.
FEATURED STORIES NEWSINFO House appropriations panel head steps down NEWSINFO ‘Show of force’: 1.8M join INC peace rally NEWSINFO Acop: What do you need 20 guns for?“In another hearing, I confirm that what we have seen from our record is that compliant with the 3 percent franchise tax,” Dimalanta told Rodriguez during the hearing.
“Precisely, that was the issue. NGCP has complied; BIR said NGCP has complied, then why are we here?” Rodriguez asked. “Are we trying to dissolve the 50-year franchise of NGCP? Is that the reason, Mr. Chairman?”
Article continues after this advertisementBut Surigao del Norte 2nd District Rep. Robert Ace Barbers believed there was a need to scrutinize NGCP, especially regarding who controls the corporation, given concerns that many of the companies linked to it are of Chinese origin.
Article continues after this advertisement“We’d like to determine, sino ba talaga nagko-control ng NGCP, ‘di ba? Is it run, controlled, managed, operated by the Chinese? Or is it really the Filipino? Kaya very crucial ito, Mr. Chair, because to what extent do the foreign incorporators or counterparts have influence over the management, operation, and control of this corporation?” Barbers asked.
Article continues after this advertisementLater in the hearing, Batangas 2nd District Rep. Gerville Luistro asked NGCP legal counsel Pia San Diego if the corporation complied with the constitutional provisions regarding foreign ownership and management structure for companies in the public utility sector.
“There are two important constitutional provisions which must be raised pertaining to public utilities, that pertains to NGCP — one is the ownership, that the same must be 60 percent Filipino-owned, and 40 percent may be allowed to be foreign-owned. May I ask the NGCP, did you comply with this constitutional provision?” Luistro asked, to which San Diego responded affirmatively.
Article continues after this advertisement“And the second important constitutional provision Mr. Chair is that the executive and managerial officers should be Filipino citizens. NGCP, did you comply with this constitutional provision, yes or no?” the lawmaker asked again, to which San Diego replied yes.
However, Luistro showed information indicating that NGCP has officials who are Chinese nationals, including a certain Zhu Guangchao who is supposedly designated as chairman.
“Having said so, because the same is indicated in your document, do you maintain your position that the executive and managerial officers are Filipino citizens?” Luistro said.
“Your Honor, based on our general information sheet […] the chairman of our board is Mr. Zhu Guangchao,” San Diego replied, confirming to committee chairperson and Parañaque 2nd District Rep. Gus Tambunting that Zhu is a Chinese national.
San Diego explained that Zhu is only the chairperson of NGCP’s board of directors, noting that all executive and managerial positions are held by Filipinos. However, this was questioned by Deputy Speaker David Suarez, who argued that the chairmanship of the board should be held by a Filipino, given that 60 percent of the corporation is Filipino-owned.
“Your Honor, Mr. Zhu Guangchao is chairman of the board of directors, but our executive officials and officers are all Filipinos,” she said.
“Sixty percent Filipino owned ‘yan, mas gugustuhin ko na ‘yong chairman ko Filipino, bakit ko ibibigay sa dayuhan ‘yan,” Suarez said later on.
DelaysAside from issues of foreign ownership, delays surrounding NGCP projects were also discussed. While the ERC wants higher fines imposed on NGCP for the delay of transmission projects, Rodriguez stated that the corporation cannot be blamed for the five-year delay in the Mindanao-Visayas Interconnection Project, as the delay was caused by right-of-way issues.
“We have to look at the reasons. In fact, if we see the reasons for delays in the right of way that can never be secured, it stops the project,” he said.
“Mindanao has been connected to the Visayas in January of 2024; my constituents in Cagayan de Oro, second district would thank the NGCP for finally connecting Mindanao to the Visayas and to Luzon. Why? Because if we need more power from Visayas and Luzon, they can give it to us and if they have excess capacity in Mindanao, we can help the Visayas and Luzon,” he added.
Rodriguez noted that even the Department of Energy admitted that not all delays in transmission projects should be attributed to NGCP.
“Sa right of way meron pa. There are cases that have pending ERC approval also. It’s a culmination of everything, like sa Panay, there’s an issue with the owner and the DENR,” Energy Undersecretary Sharon Garin said.
NGCP has been under scrutiny in the House, with key members like Albay 2nd District Rep. Joey Salceda warning managers of the Maharlika Investment Fund against investing in the company.
According to Salceda, NGCP owed power consumers P200 billion in expenses that were disallowed in 2023.
READ: Beware of grid firm, PH wealth fund told
On Monday, House Speaker Ferdinand Martin Romualdez listed the probe on NGCP issues as among the investigations that will continue as Congress resumes its session.
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“Good governance demands transparency and accountability. This chamber is the vanguard of that principle. In the coming weeks2kbet, we will hold oversight hearings to ensure that the people’s money serves the people’s needs,” Romualdez said.
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