Allow gov't audit or face franchise revocation, Gatchalian warns NGCP

Senator Sherwin Gatchalian threatened Monday to push for the revocation of the franchise of National Grid Corporation of the Philippines (NGCP) if it will continue to bar government agencies from conducting audit on its facilities and books.

This was after Senator Richard Gordon presented December 2011 document for “Luzon substation expansion project 3” signed by Wen Bo, a Chinese national who was a chief technical officer of the NGCP. The document stated it was signed in the presence of Anthony Almeda, then chief administrative officer and later became president and chief executive officer of NGCP.

?“There is something wrong with that. Parang iwas pusoy.  Foreigner ang pumipirma. Is that a cop out? These are major contracts,” he asked during the hearing of the committee on energy on the national security implications and operations of the NGCP franchise.

“You don’t want to be audited. Kung hindi tayo marunong mag-ingat sa national interest ng Pilipinas lalamunin tayo niyan (China). As far as I can see parang wala na kayong say, saling-cat na lang kayo.  Could you blame us if we say that. Gusto nilang mag inspeksyon umiiwas kayo sa lahat. Anong tinatago n’yo? Anong iniiwasan n’yo?” Gordon added.

The Department of Energy and National Transmission Corporation said NGCP has prevented them from conducting a security audit on the grid’s operating system.

Gatchalian, energy committee chair, said the position of Wen Bo violated the Constitution because he held a management post.

“Sabi n’yo kanina walang instance na may Chinese na nasa executive and management position as prescribed in the Constitution. But merong isang Wen Bo na ang posisyon niya ay Chief Technical Officer and in your table of organization, it is the second highest,” he said.

He said Wen Bo’s position was very crucial in the assurance of the Filipino people that vulnerabilities are covered and cyber attacks will not happen in the grid.

He added Wen Bo also exercised executive functions.

Ronald Dylan Concepcion, NGCP Assistant Corporate Secretary on Special Counsel for Legal and Regulatory Affairs, said Wen Bo’s position was authorized by the Department of Justice and he was in fact given a visa for it.

He said Wen Bo is no longer holding the position and the present chief technical officer of NGCP is Sonny Dimaliwat, a Filipino.

He added the Chinese nationals in NGCP are only holding director position now.

Almeda said that even if there are Chinese nationals in the NGCP, it is the Filipinos who control the corporation.

“It is always the Filipinos that control the management. If ever there are documents that they signed, it go through our office and we monitor it and we supervise it,” he said.

Gatchalian insisted that Section 11, Article XII of the Constitution insisted that all the executive and managing officers of a public utility corporation or association must be citizens of the Philippines.

“You are saying you have control. But as much as I want to believe, without government exercising its check and balance power I don’t think I can do that,” he said.

Possible franchise revocation

Gordon said such violation of the Constitution could result to cancellation of NGCP franchise.

Energy Secretary Alfonso Cusi asked if NGCP is now willing to be audited by DOE and Transco. He said they have already submitted audit protocol for the purpose.

“Papaaudit na ba sila and they recognize DOE, kasi kinuwestyon nila ‘yan, ang may authority sa kanila to supervise and regulate,” he said.

Gatchalian said NGCP should allow DOE and Transco to conduct the audit or face revocation of its franchise.

“I have a very simple deal for NGCP, you allow the inspection or else we would proceed to review your franchise because there was clearly a violation of the Constitution,” he said.

Gordon supported Gatchalian’s move and even asked to subpoena all the Chinese nationals working in NGCP.

“We should get all the record of the Chinese working in that company throughout the last 10 years of operation,” he said.

In an interview after the hearing, Gatchalian said they will give NGCP until Monday to talk with its board and discuss the audit.

"'Yung audit ang magpapatunay kung may violation so importante na magkaroon tayo ng proseso na i-audit sila, iinspect, at tignan 'yung documents. Kapag napatunayan na may violation, lalo na sa Constitution natin, ito ay dahilan para irevoke ang franchise," he said.

"Binigyan ko sila until Monday para balikan tayo at assuming na hindi sila papayag na papasukin ang DOE, itutuloy namin ang aming recommendation na irevoke ang franchise nila," he said.

Senators earlier expressed worry on possible China interference with the power transmission in the country as the State Grid Corporation of China holds a 40% equity stake at the NGCP.

Inspection welcome

Cynthia Perez-Alabanza, NGCP corporate communications and public affairs department, said they welcome the congressional review of their franchise as they followed the rules and regulations set by the law.

“Privilege yan ng Congress dahil sila ang nag-grant ng franchise namin, definitely they can review. Kami confident na mapapatunayan namin na wala kaming ginawang mali, na lahat ‘yan sang-ayon sa batas at sa prangkisa pati lahat ng mga rules and regulation. Lahat ‘yan kami ay maingat na maingat na sumusunod,” she told reporters after the hearing.

On the audit, she said NGCP is open to it but it should be done the correct way.

“Time and again, sinasabi namin na bukas ang aming pinto pero dapat sa tamang  pamamaraan.  Ang transmission system highly secure na facility ‘yan, hindi yan 7-11 na anytime pwede kang pumasok kung may gusto kang bilhin kapag may pera ka,  kailangan nasa tamang proseso, nasa tamang protocol,” she said.

She added the National Security Council and Department of Information and Communication Technology have already conducted inspection in their facility.

“Sinabi nila na gusto nilang iinspect ‘yung broadband capacity, sabi namin sige pero ang gusto namin ang mag iinspect ‘yung may kapasidad so nagpainspect kami sa DICT. Ngayon sabi nila cyber security, sa amin walang problema po ‘yun pero ang gusto namin yung may kapasidad, nag-inspect ay group of (National Security Adviser Hermogenes) Esperon,” she said.

“From the very beginning hindi po kami tumatanggi sa inspection pero gusto lang namin may kaayusan dahil kung sino-sino na lang ang pumasok, sino-sino ang magbuklat ng mga  operations namin, posible rin namang malagay sa alangain ang operation ng NGCP,” she added. —LDF, GMA News