Press Release
February 2, 2022

Cusi should resign and face charges for railroading sale of shares in Malampaya - Gatchalian

For railroading the approval of the sale of participating interest of Chevron in Malampaya gas field, key officials of the Department of Energy (DOE) led by Secretary Alfonso Cusi are criminally and administratively liable for graft, gross neglect of duty, and grave misconduct and should immediately resign from their posts, Senator Win Gatchalian said.

"I call on Secretary Cusi and his erring subordinates to immediately resign. With all that has happened, the Filipino people can no longer trust you to faithfully safeguard our country's precious energy resources," Gatchalian stressed.

In a privilege speech delivered Wednesday, February 2, Gatchalian exposed the numerous times that the DOE officials violated laws just so they could give a seal of approval to the sale of the 45% participating interest in the Malampaya gas project of Chevron Malampaya LLC Philippines, now known as UC 38 LLC, to UC Malampaya - an indirect subsidiary of Udenna Corporation.

At the onset of the Senate inquiry into the $565 million or more than P40 billion Chevron-UC Malampaya deal, DOE officials prescribed prior government approval as dictated by Presidential Decree No. 87 and Department Circular 2007-04-0003 on such transaction only to retract late last year after financial evaluation of UC Malampaya yielded the findings that it has a negative $137.2 million working capital or negative P6.9 billion.

As such, the Senate Energy Committee Chairperson said Cusi and his subordinates are liable for the following: gross neglect of duty and grave misconduct in evaluating and approving this transaction; Anti-Graft and Corrupt Practices Act for knowingly approving the transfer of the 45% participating interest in SC 38 to UC Malampaya - an entity that is clearly not qualified, and in so doing providing an unwarranted benefit, advantage, or preference to UC Malampaya through manifest partiality, evident bad faith, or gross inexcusable negligence in evaluating and approving the deal.

If found guilty, they could face dismissal from public service, imprisonment of six years and one month to 15 years and perpetual disqualification from public office, Gatchalian said.

In the light of this incident, Gatchalian said amendments to strengthen PD 87 are in order and to also ensure that future service contractors and DOE officials will not repeat the same mistakes.

"The law is the law. Anyone who violates it must be punished to its full extent. I call on the proper authorities to promptly file administrative and criminal cases against Secretary Alfonso Cusi, who approved the deal, and other DOE officials who evaluated the Chevron-UC Malampaya deal and recommended its approval," Gatchalian emphasized.

Malampaya powers more than four and a half million homes and businesses in Mega Manila alone. Six out of every ten light bulbs in Meralco's franchise area are powered by Malampaya gas. It contributes almost 20 percent of the entire country's power generation mix.


Cusi dapat nang magbitiw at harapin ang mga kaso sa pagbebenta ng shares sa Malampaya - Gatchalian

Nanawagan si Senador Win Gatchalian ng pagbibitiw ni Department of Energy (DOE) Secretary Alfonso Cusi pati na ang labing isa pang opisyal ng kagawaran na nag-apruba ng bentahan ng Chevron Malampaya at UC Malampaya. Dapat panagutin, ani Gatchalian, ang mga opisyal sa mga kasong kriminal at administratibo katulad ng graft, gross neglect of duty, at grave misconduct.

"Ako ay nanawagan kay Secretary Cusi at kanyang mga subordinates na magbitiw na sa pwesto sa lalong madaling panahon. Matapos ang lahat ng nangyari, hindi na kayo mapagkakatiwalaan pa ng sambayanang Pilipino dahil hindi kayo naging tapat sa pangangalaga ng kaisa-isang pinagkukunan ng bansa ng natural gas," pagdidiin ni Gatchalian.

Sa kanyang privilege speech ngayong Miyerkules, February 2, ibinunyag ni Gatchalian ang mga paglabag sa batas ng mga opisyal ng DOE para lamang maaprubahan ang pagbebenta ng 45% participating interest sa Malampaya gas project ng Chevron Malampaya LLC Philippines, na kilala ngayon bilang UC 38 LLC, sa UC Malampaya - isang indirect subsidiary ng Udenna Corporation.

Sa umpisa ng pagsisiyasat ng Senado sa $565 milyon o higit sa P40 bilyong halaga ng kasunduan, sinabi ng mga opisyal ng DOE na kailangang aprubahan muna ng gobyerno ang nasabing transaksyon alinsunod sa probisyon ng Presidential Decree No. 87 at Department Circular 2007-04-0003. Ngunit binawi nila ito kalaunan sa pagdinig ng senado noong huling bahagi ng nakaraang taon matapos isailalim ang UC Malampaya sa financial evaluation kung saan lumabas na may negatibong $137.2 milyon o negatibong P6.9 billion working capital ang kumpanya.

Ayon sa Senate Energy Committee Chairperson, dapat managot si Cusi at kanyang mga subordinates sa paglabag sa mga sumusunod: gross neglect of duty at grave misconduct sa pag-apruba ng transaksyon, at Anti-Graft and Corrupt Practices Act sa pag-apruba ng paglipat ng 45% stake ng UC Malampaya sa Malampaya gas field, isang hindi kwalipikadong kumpanya.

Sakaling mapatunayan silang nagkasala, maaari silang mapatalsik sa serbisyo, makulong ng hindi bababa sa anim na taon at isang buwan o hanggang 15 taon at panghabangbuhay na diskwalipikasyon na paninilbihan sa gobyerno, ani Gatchalian.

Bunsod ng mga kaganapang nabanggit, sinabi ni Gatchalian na nararapat nang amyendahan para paigtingin ang PD 87 nang sa gayon ay matiyak na hindi na mauulit ang mga pagkakamali ng DOE at mga service contractor.

"Ang batas ay batas. Ang sinumang lalabag dito ay dapat panagutin. Nananawagan ako sa mga awtoridad na agad na magsampa ng mga kasong administratibo at kriminal laban kay Secretary Alfonso Cusi na nag-apruba sa Chevron-UC Malampaya at ibang opisyal ng DOE na sumuri ng naturang kasunduan," giit ni Gatchalian.

Ang Malampaya ay pinakikinabangan ng mahigit apat at kalahating milyong tahanan at negosyo sa Mega Manila. Sa ilalim ng Meralco franchise area, anim sa sampung kostumer nito ay sinusuplayan ng Malampaya gas. Umaabot sa 20 porsiyento ang ambag ng Malampaya sa power generation mix ng buong bansa.

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