Tax relief given to NGCP made gov't a cash cow, says Hontiveros

The National Grid Corporation of the Philippines (NGCP) made the Philippine government a cash cow through the tax incentives it enjoys, Senator Risa Hontiveros said Tuesday.

"Higit pa sa security issues that is putting our country in peril, they are also given tax reliefs habang ang mga manggagawang Pinoy, automatic na kinakaltasan ng buwis kada sahod. Magkano ang nalulugi ng gobyerno mula sa kontratang ito?" the senator said in her opening statement during a Senate inquiry.

She pointed out that the foregone revenues of the government because of the said tax exemption amounts to billions of pesos that could have been allocated to vital social services.

"Mukhang garapalan na ang panggagatas sa atin. Ginawa tayong cash cow. We lost billions in taxes because of the franchise law that exempted NGCP from paying all types of taxes, pati Real Property tax, exempted sila," Hontiveros said.

"Ang three percent franchise tax lang ang obligasyon nila which, hindi rin tayo sigurado kung sila nga ba ang nagso-shoulder," she added.

The senator underscored that the country's public utilities should be carefully guarded to advance the best interests of the Filipinos.

Lawmakers are looking into the possible security threats posed by partial foreign ownership of the NGCP.

The State Grid Corporation of China (SGCC) holds a 40% stake in NGCP, while Henry Sy Jr.’s Monte Oro Grid Resources Corp. and Robert Coyiuto Jr.’s Calaca High Power Corp. each hold 30%.

The power grid was previously warned about possible revocation of franchise after its officials refused mandatory system audit several times.

Energy Secretary Alfonso Cusi said China has the potential to remotely shut down the country’s power transmission grid because of its digital nature.

On the other hand, while NGCP welcomes the congressional review of its franchise, it underscored that the audit shall be conducted by the appropriate authorities.

“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,” Cynthia Perez-Alabanza, NGCP corporate communications and public affairs department, said.

The committee hearing on NGCP's operations was cancelled on Tuesday after its president and chief executive officer Anthony Almeda failed to attend.

"Mr. Almeda was actually prepared to go today. However, yesterday afternoon he started feeling unwell and he was advised by our office physician to go home and rest. This morning, he informed us that he was advised to go to the hospital because he was not feeling well," Almeda's representative said during the hearing.

Senator Sherwin Gatchalian, committee chairman, deemed it best to cancel the inquiry and asked Almeda's camp to submit a medical certificate to substantiate their claim, considering the coronavirus disease 2019 (COVID-19) situation in the country.

"NGCP performs a very important duty of operating our transmission grid which is the only one of its kind in our country and we want to get the right answer no less than from the president himself," Gatchalian said.—AOL, GMA News