Press Release
August 7, 2009

SENATE URGED TO PROBE FUND RELEASES TO NASECORE

Senate Minority Leader Aquilino Q. Pimentel, Jr. (PDP-Laban) today called for a Senate inquiry into the disbursement of public funds for private purposes to the National Association of Electricity Consumers for Reform, Inc. (Nasecore) and the accountability of the association in the use of these funds.

Pimentel cited reports that the Philippine Electric Market Corporation (PEMC), an entity under the Department of Energy created to govern the Wholesale Electricity Spot Market (WESM), provided funding for various fora organized by non-government organizations and private companies in line with its consumer information and education program.

According to reports, the Energy Regulatory Commission confirmed that various amounts totalling P5.8 million were granted to Nasecore by the PEMC from its Consumer Education Fund.

Pimentel noted that Nasecore was able to capture the bulk of the consumer education fund by collecting a total nearly P6 million of the P11 million allocation of the Consumer Education Fund from October, 2004 to July, 2007.

He said this was contrary to the resolution adopted by the PEMC Board on June 20, 2007 creating a Consumer Education Fund Committee to put a stop to the preferential treatment given to Nasecore as the sole organization given access to the Fund.

The said resolution, however was questioned by Nasecore president Pete Ilagan in a letter to the PEMC dated Sept. 19, 2007. Aside from this, Ilagan publicly declared that the Senate has no authority or jurisdiction to investigate Nasecore's affairs.

"It seems ironic that Nasecore, a self-proclaimed electricity consumer advocate and protector, through its public statements has manifested obvious bias in favor of the National Power Corporation and vigorously opposed all moves by the independent power producers, the Department of Energy and the Energy Regulatory Commission, as well as Congress, to institute reforms in the power industry," Pimentel said.

He stressed that transparency and accountability in the disbursement of public funds to private entities must be further strengthened and to ensure proper use of public funds by private entities.

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