Capitol probe on Ileco 3-Artech botched deal up in Batad
Bribery talks and controversies hounding the Power Supply Agreement (PSA) between one of Iloilo’s biggest electric cooperative and a service provider will take center stage anew come Tuesday.
This, as the Committee on Economic Affairs of the 9th Iloilo Sangguniang Panlalawigan (SP) confirmed the conduct of its out-of-town public hearing. Host-town would be Batad, Iloilo, one of the stakeholders of Iloilo Electric Cooperative (Ileco) III.
And like the first public hearing last May in the Municipality of Sara, expected again are top personalities embroiled in the yet to be resolved saga. To note, the PSA has since been attacked by oppositors heightened by the revelation of Ileco III board president on bribe money handed out.
Iloilo Vice Governor Rolex Suplico, SP presiding chair will lead the SP body with the committee hearing slated 1pm. The entire morning will see the special session of the 9th SP body.
SP Committee on Economic Affairs and Investment chaired by Third District Board Member Arthur Defensor Jr. will conduct the public hearing. Defensor Jr. has since stressed that the proceedings form part of the “fact-finding” efforts of the committee.
Said legislative investigation was pushed by Fifth District Board Member Jett Rojas with principal concern on the regularity of the PSA.
Mayors from Ajuy, Balasan, Barotac Viejo, Batad, Carles, Concepcion, Estancia, Lemery, San Dionisio, San Rafael, Sara, Anilao and Banate as stakeholders have been invited. Also sent invites were management committee members of Ileco III, area managers and other Ileco officials.
Also expected is Presidential Assistant For Western Visayas Assistant Secretary Raul Banias. It was not immediately known if like the first public hearing, an invite will be sent to Governor Niel Tupas Sr. and Fifth District Congressman Niel Tupas Jr.
The Ileco III controversy was dubbed by Rojas as one “anomalous” deal and “a case of social injustice.”
Rojas in a privilege speech spoke hit the Ileco III deal with Applied Research Technologies Philippines Incorporated (Artech).
Artech, Rojas said, is to supply electric power for 25 years at a generation charge of P6.50 per kilowatt hour.
“Where is the irregularity in this decision?,” Rojas questioned. “Firstly, it was alleged that Artech was a non-participant in the bidding process… Secondly, the cost of power generation charged by Artech is said to be very costly and in fact, above the bid price of qualified bidders… Third, is there truth to the allegations of bribery of the president and members of the Board of Directors each for a total amount of P150,000 with the supposed two-time payment cleverly effected before and after the signing of the contract?”
Rojas also raised questions on the supposed haste of Ileco III president “when he has 60 days to study and review?”
“Last and most importantly, where were the member-consumers not consulted on the matter since the investment decision will eventually accrue to either their benefit or disadvantage?,” Rojas continued. “….it would seem that the Board failed to exercise prudence in its decision-making responsibility and this is a very serious matter indeed.”
As such, Rojas demanded for disclosure and transparency on the deal stressing that member-consumers “deserve to know the unsullied truth and those who were involved in the supposed anomaly once ascertained must be held responsible for the consequences of their actions.”
Since news broke out, the National Electrification Administration (NEA) has taken over and reduced the Ileco III board on “advisory status.” The ARTECH deal was also recommended to be rescinded with corresponding charges pushed on erring officials involved.