Lawmakers target Ducut

Former Pampanga Rep. Zenaida Cruz-Ducut demanded a 5-percent kickback for every pork barrel project she delivered to her close associate, businesswoman Janet Lim-Napoles, whistle-blower Benhur Luy has alleged. erc.gov.ph

The chair of the Energy Regulatory Commission (ERC) may have found herself in a deeper hole after whistle-blowers tagged her as a conduit of alleged pork barrel queen Janet Lim-Napoles and several members of Congress, lawmakers said on Monday.

ERC chair Zenaida Cruz-Ducut, however, should not use the pork barrel scandal as an excuse to skip the Senate energy committee’s hearing on the huge power rate increase of P4.15 per kilowatt hour (kWh). Otherwise, she would be subpoenaed, lawmakers said.

The Senate committee has invited Ducut to shed light on the possible collusion among power producers that simultaneously shut down last month and other issues.

The shutdown prompted Manila Electric Co. (Meralco) to buy more expensive supply from the spot market and pass on the cost to its customers.

“Definitely [she’s in a deeper hole],” Sen. Antonio Trillanes IV, who filed the resolution seeking an inquiry into the P4.15/kWh increase in power rates in Meralco’s franchise area.

“Her involvement in the pork barrel scam shows the likelihood that there’s collusion here. If she snubs the hearing on Wednesday, we will ask the committee to subpoena her,” he added.

Skipping hearing

Ducut has skipped hearings by the House of Representatives on the three-tiered power rate adjustments to be implemented beginning this month.

As she deals with the furor over the power rate increase, Ducut has been implicated by principal whistle-blower Benhur Luy in the alleged conversion of P10 billion in pork barrel into kickbacks over 10 years beginning with the Arroyo administration.

In his Nov. 26 testimony to the NBI, Luy claimed that Ducut was a friend of Napoles and acted as an agent to obtain projects using government funds.

Ducut allegedly visited Napoles’ office regularly at the Discovery Suites to get her commission and the kickbacks of six lawmakers then—Rozzano Rufino Biazon (Muntinlipa), Arthur Y. Pingoy Jr. (South Cotabato), Salacnib Baterina (Ilocos Sur), Douglas R. Cagas (Davao del Sur), Marc Douglas C. Cagas IV (Davao del Sur) and Arrel Olaño (Davao del Norte).

But in other instances, the commission was deposited in her personal account, Luy said.

5-percent cut

The whistle-blower said Ducut had demanded a 5-percent commission for every pork barrel project she delivered to Napoles, alleged brains of the scam involving the lawmakers’ pork barrel from the Priority Development Assistance Fund (PDAF).

Ducut was among the 34 people, including seven former lawmakers and Napoles, charged on Nov. 29 with malversation in the second set of cases that the National Bureau of Investigation filed in the Office of the Ombudsman in connection with PDAF transactions from 2007 to 2009.

Ducut represented Pampanga’s second congressional district from 1995 to 2004. She was appointed ERC chair in 2008 by then President Gloria Macapagal-Arroyo, who now represents the district.

Compel her to attend

In the House, militant lawmakers are demanding that Ducut be compelled to attend the next committee on energy hearing.

ACT Teachers Rep. Antonio Tinio wondered why the committee was allowing Ducut to ignore its invitation for the second straight week.

Ducut had sent ERC Executive Director Francis Saturnino Juan to represent her in the hearing.

Tinio said that attending committee hearings was part of Ducut’s duty as a government official to ensure transparency. “She cannot use her meetings as an excuse not to attend especially when it directly concerns her office. She should be present in our hearing (next month) or we will take drastic action,” he said.

“Chair Ducut should be subpoenaed by the Congress energy committee so that she can explain the recent power rate hike and her agency’s inability to defend the interest of consumers,” said Bayan Muna Rep. Neri Colmenares.

“She should also be open to questions pertaining to her activities when she started in public office. If she cannot fulfill her function due to the various cases filed against her then she should resign from office,” he added.

In Malacañang, presidential spokesman Edwin Lacierda steered clear of calls for Ducut to take a leave of absence amid allegations that she served as an agent for Napoles.

Personal decision

“We leave that to her personal decision whether she should take a leave, resign,” Lacierda told reporters.

He said the Office of the Ombudsman was investigating the alleged racket involving billions in PDAF that was channeled to bogus foundations put up by Napoles.

“Let’s wait for the Ombudsman [to finish the investigation],” he said.

“There is a presumption of innocence. So we will hope to see the Ombudsman release the results soon to determine if there is a basis for the case filed by the DOJ (Department of Justice), and if there is, [to identify] those who need to be charged.”

Explain

Sen. Sergio Osmeña III, chair of the energy committee in the upper chamber, said there was no reason for Ducut not to appear officially. “But I’m sure maybe personally.”

If Ducut skips Wednesday’s hearing, she would be asked to explain, and later on, be subpoenaed, Osmeña said.

“Yes, we might have to subpoena her. First ask her to explain because that’s our standard procedure. Maybe she was sick but we will definitely write her immediately to give her seven days to submit her explanation and after that the committee can decide to subpoena her for the following hearing,” he told reporters.

So far, Ducut has not confirmed her attendance, Osmeña said.

“I would understand. She would not appear with this kind of allegation that has been thrown her way,” he said.

Sen. Ralph Recto said that Ducut had to explain why the ERC approved the power rate increase in the first place.

“They approved it just like that. But the first issue: Why is there a rate increase? They should have studied it first,” he said.

Collusion

Osmeña said the main objective of the hearing was to inquire into the collusion.

“We will ask them (ERC) to explain if they have any reason. Personally, I doubt that they have any cause to intervene unless there is proof of collusion. You cannot intervene, that’s the free market,” he said.

In the same manner, the government could not intervene when oil companies raise fuel prices, the senator said.

“We can check. We can investigate the prices that they paid for, but it’s all subject to the international market. We cannot arrest Petron or Caltex or Shell or the others just because they raised their prices but we will see if there was collusion because the law prevents collusion,” he said.

Collusion, however, is another matter, Osmeña said.

“Any collusion in business in a free market even like ours is against the law. You can’t have an arrangement. That’s criminal. You go to jail for that if they can prove it. So, that’s why we’re always watching the energy companies to check if there’s collusion,” he said.—With reports from Gil C. Cabacungan and Christian V. Esguerra

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