Ducut, 3 other execs slapped with graft raps for failure to probe power collusion

MANILA, Philippines—Two militant lawmakers filed a graft complaint against Energy Regulatory Commission (ERC) Chair Zenaida Ducut and three other ERC commissioners over their alleged failure to investigate the alleged collusion of power firms that caused a sharp increase in electricity prices last year.

In an 11-page complaint filed before the Office of the Ombudsman on Monday, Bayan Muna Representatives Neri Colmenares and Carlos Zarate said the officials are liable for failing to fulfill their oversight functions in the Electric Power Industry Reform Act (Epira), as well as violating the Anti-Graft and Corrupt Practices Act.

The other ERC officials in the complaint are Commissioners Alfredo Non, Gloria Victoria Yap-Taruc and Josefina Patricia Asirit.

Energy Regulatory Commission Chair Zenaida Ducut. CONTRIBUTED PHOTO/www.erc.gov.ph

The lawmakers said the ERC officials failed to release a report on the alleged collusion of power generators to shut down their plants while Malampaya repairs were taking place, which caused a spike in electricity rates.

The ERC in an order vowed to investigate the supposed collusion as early as March 2014, the complainants said.

The complainants added that by sitting down on the report, the ERC officials are liable for graft for failure to release the report and fulfill its mandate, allegedly to favor the power players who were still connected to the power grid despite the allegations.

The ERC officials are also liable for giving undue injury to the public and giving undue advantage to the power players in the discharge of their official duties.

The complaint also said the officials violated the Code of Conduct and Ethical Standards for Public Officials and Employees for failing to fulfill their duties with highest degree of professionalism and excellence.

“Respondents are guilty of wantonly and deliberately neglecting or refusing, after repeated demands by the people and after repeated commitments by the Respondents, to publish the result of the ERC investigation on the reported collusion, within a reasonable time, for the purpose of giving undue advantage in favor of interested parties,” the complaint read.

“Additionally, Respondents failure to publish the report subject of this Complaint, grants private parties unwarranted advantage and preference as they remain active players in the energy sector despite their violations… and will profit from the claimed lack of supply next year,” the complaint added.

The complaint said the release of the report is important, especially in the midst of the Congress deliberations on President Aquino’s request for emergency powers to address the looming power shortage for the summer of 2015.

The ERC drew public ire for approving Manila Electric Company’s P4.15/kWh power rate hike, said to be the country’s highest power adjustment, until the Supreme Court issued a temporary restraining order.

The hike was supposedly due to higher priced electricity at the Wholesale Electricity Spot Market, allegedly the result of the collusion of the power generators.

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