Good investment or gamble? MIC investment in NGCP draw mix opinion from solons

Lawmakers on Tuesday expressed differing opinions on the decision of the Maharlika Investment Corporation (MIC) to invest in the National Grid Corporation of the Philippines (NGCP).

Senator Juan Miguel Zubiri, who was the Senate president when the Maharlika Investment Fund was passed in the chamber, welcomed the development, calling it "good investments in terms of profitability", noting that the NGCP has no competition and is a monopoly.

More than this, Zubiri said it is also "strategic" in terms of defense and security.

"The National government should be strategically involved in the control and management of such an important energy backbone of our country," he said.

The lawmaker suggested the crafting of a bill where the strategic infrastructure of our country of which are of national security importance should be 100% Filipino-owned and this is where the Maharlika fund should be more participative as an investor.

"As an author of that measure, that’s how we perceived the fund should be. Profitable but strategically important as well," Zubiri said.

Senator Joel Villanueva, who supported the law that created the sovereign wealth fund, said the MIC's move allowed the government's representation in the NGCP operations.

"With this, we are expecting greater government influence and participation, which could motivate NGCP to be more efficient. Greater efficiency and stricter compliance with government regulations will reduce transmission rates being charged by NGCP," Villanueva said.

For his part, Senator JV Ejercito said it is a "sound investment," but he expressed hope that the MIC acquires the 40% shares owned by the State Grid Corporation of China in the NGCP "for national security concerns."

"Especially with the conflict with China in WPS (West Philippine Sea), it should be prioritized," the lawmaker said.

In a press briefing earlier today, MIC President Rafael Consing said the MIC is open to acquiring the shares of SGCC in NGCP "if it becomes available."

Senator Alan Peter Cayetano also deemed the move as a "good investment", but reminded that the MIC should be careful with its investment to ensure that it will not lose in the long-term.

"Importante pag binili, bantayan nila yung kumpanya na yun. Kasi nga, we can't afford na in the short term, malugi yung Maharlika Fund," he said in an interview.

In the House of Representatives, Gabriela party-list Rep. Arlene Brosas slammed the MIC's move and called it a "dangerous scheme that gambles public funds while enriching corporate cronies."

"This is nothing but crony capitalism in its worst form. The Marcos Jr. administration is gambling people's money by investing in Henry Sy Jr.'s Synergy Grid and Development Philippines (SGP) while opening doors for other cronies to profit from NGCP. Essentially, they're raiding government-owned and controlled corporations (GOCCs) to fund the Maharlika Investment Fund, only to use it in questionable deals that benefit big business interests," Brosas said.

For the lawmaker, the acquisition of shares from NGCP, which she called "corporate maneuvering", would not address the fundamental issues that are plaguing the energy sector.

"How will having two board seats solve the rotating brownouts, high electricity rates, and unstable power supply that ordinary Filipino families have to deal with? This is clearly not about improving services but about controlling profitable assets and enriching cronies like Henry Sy Jr.," Brosas said.

She likewise aired concern on the timing and structure of the acquisition of NGCP's share.

"Bakit bigla na lang may ganitong deal? Sino ang tunay na makikinabang? The Filipino people deserve to know the full details of this transaction that involves their hard-earned money," she said.

(Why is there suddenly a deal like this? Who will truly benefit from this?)

Brosas said this move only proves their opposition during the passage of the bill creating the MIF that it is "designed to concentrate capital in the hands of the few while putting public funds at risk."

"We demand full transparency and accountability. The House of Representatives must exercise its oversight functions to scrutinize this deal. Hindi pwedeng ipagkatiwala na lang basta-basta ang ating power grid sa mga bagong crony ng administrasyon, lalo na't walang garantiya na magkakaroon ng abot-kayang at stable na supply ng kuryente," she ended.

(We should not entrust our power grid with the new cronies of the administration, especially that there is no guarantee if this will result in affordable and stable power supply.)

As early as May 2024, Consing said the MIC will concentrate its investments on developing the transmission and distribution infrastructure of the country's off-grid islands.

In a press briefing earlier today, the MIC president also said that the investment in NGCP could help in the government's aim of lowering power prices.

Consing emphasized that ''energy security sits at the top of our priorities,'' noting that the MIC can support the power grid operator in its transmission grid infrastructure. — BAP, GMA Integrated News