TRANSCRIPT OF AMBUSH INTERVIEW OF SEN. SERGE OSMEÑA

On Emergency Powers

Q: Kelan magkakaroon ng plenary debates on emergency powers?

Serge: I don't know because the committee will have to finish its work first. Sa ngayon po, busy ang lahat ng senador to pass the most important law every year, which is the national budget. There are instructions already from the Senate President's office na walang hearing hanggang mapasa yung national budget

Q: Are you still considering granting the emergency powers?

Serge: Well, there are many definitions of the emergency powers. As a matter of fact, the word emergency is not in the law. That was created by media. So there will be special powers that we will consider giving the president.

Q: Within this year kaya?

Serge: Baka hindi. Pero hindi ko alam. Because we still have about two to three weeks in December. Ngunit napaka-complicated po nito. Kailangang isa-isahin isa namin 'yung mga special powers na ibibigay sa president. I think they will mostly have to do with appropriations and the use of the Malampaya fund. So it might not be an amendment or exemption to the EPIRA but an exemption to the Malampaya fund.

Sapagkat the Malampaya fund was created under a presidential decree and I think it is called the Oil and Natural Gas law, at lahat ng royalty na nanggagaling sa Malampaya ay pupunta sa pondo na ito. And it is only supposed to be for energy development. But anyway, we will strengthen it at sasabihin namin sa president na pwedeng gamitin ang pondo na ito para i-refund yung mga sasali sa Interruptible Load Program.

Q: Yung special powers na kino-consider ng House para sa VAT exemption ng mga mag-pa-participate sa ILP?

Serge: Yung VAT exemption, extra na lang 'yun, 'yung mga sinasama. What is important is that those who participate in the ILP are guaranteed that they will be paid because it is more expensive to use diesel plants. And I think the cost will be about P9 per kwh.

Q: So hindi na kailangan yung VAT exemption?

Serge: Ayoko i-argue iyan, bakit sinama nila, but I will read their resolution. Pag-aaralan ko muna. Hindi naman kailangan. Maloloko na naman yung BIR sa mga ganyan eh, exempt this, exempt that. That's nothing because they do not pay the VAT. It is the government who will end up paying that VAT kasi whatever is extra above the P5 per kwh na binabayaran nila ngayon sa generation, let's say ang cost nila to run their generation is P14. E di 14 minus 5, P9 andyan na rin yung VAT. That will be paid also by the government. So you are charging the government for VAT. Huwag mo ng guluhin 'yung accounting kasi ire-refund naman sa inyo ng government iyan eh.

I have not read the exact resolution of the House yet. Bago lang iyun e. Babasahin ko muna but I know what will people say about VAT na hindi nila na-i-intndinhan ang implication ng VAT at sasabihin na exempt from VAT, eh magiging hero na sila. It will really be refunded. Lahat iyan ma-re-refund ng P9.

EO 173

Q: President Aquino signed EO 173 granting independent power producers reduction of real property taxes and penalties on IPPs. Reaction on this?

Serge: Well, that has been there for some time, it hoped to solve the problem na...'yung mga IPPs na iyan, that was contracted by Napocor. Ngunit when we passed the EPIRA, those IPPs were sold, so naging private ngayon. Napocor, being a government corporation, is tax exempt, but the IPPs are not tax exempt institutions. So dumating 'yung mga probinsiya, ang sabi, 'Hoy, may utang kayo sa amin na real estate tax.' Napakalaki na, hindi kayang bayaran ng mga power producers.

So in one particular situation dun sa Pagbilao, 735megawatt plant, was threatened to be foreclosed and auctioned. Ninerbiyos tuloy 'yung administration at inayos po, nagsabi na the president has the power to abate taxes. But that is not a permanent solution, we have to find a permanent solution

ICC hearing/Hilmarc's

Q: Some senators are saying na ipatigil na lang dahil walang substantial evidence?

Serge: That's their opinion. The public wants to have a more transparent investigation. Ako naman personally, ayoko naman sabihin na bakit yung kay Vice President Binay, nag 9 hearings na kayo, dito 1 pa lang pinipigilan mo na 'yung committee. So I will not agree with that. But I am willing to abide by the vote if the committee meets and take a vote on it, i will abide with that vote

Q: But your stand is huwag muna itigil?

Serge: Yes. My stand is in the interest of transparency, na hindi pa lumalabas lahat ng facts dito, huwag muna natin isara.

Q: Given na nangyari yung first hearing na walang napatunayan?

Serge: No, that's not true. There were a lot of points that were raised by Mr. Mejorada but he did not have the hard documentation. Now, hard documentation is only one of the types of evidence. Maganda 'yung mga arguments niya and if you could convict by circumstantial evidence, he will be able to make his case. Kasi maganda 'yung mga arguments, maganda 'yung circumstances,etc. Wala lang kopya. Pwede naman i-subpoena yung kopya na iyan ng Blue Ribbon committee, to determine if there is probable cause.

Now I'm not saying that bribes did happen but what I am saying is, there are other aspects to the convention center issue that will make people suspicious that to me might be violative of the Anti-Graft and Corrupt Practices Act.

Gaya ng walang bidding, kelan ipinasok yung value engineering, bakit nila sinasabi na magandang donasyon ito P500 million, eh binili rin sa gobyerno iyan... ang binayaran lang nila ay P17 million to P30 million, tapos ang ipinagmamalaki ay dinodonate ito ng P500 million. Eh kumuha ng tax credit. Yung tax credit, baka P40 to 50 million. Lugi tayo dyan.

Q: Syjuco should be given a chance to testify?

Serge: Yes. The committee chair already decided that he would give Syjuco a hearing, and so we cannot cut short the hearing until w hear Syjuco

Q: Wala ng hearing?

Serge: Ayaw na ng Senado eh. That's only today think, or tomorrow. After that, when the chairman of the committee on finance, Sen. Chiz Escudero opens the plenary debates, everything is suspended.