ERC’s Ducut is free to go, says Palace

Energy Regulatory Commission chair Zenaida Ducut: Not under pressure. FILE PHOTO

MANILA, Philippines—Energy Regulatory Commission Chair Zenaida Ducut may either resign now or wait for possible preventive suspension later in the event an administrative complaint against her prospers, a government spokesman said Friday.

According to Malacañang, the filing of an administrative complaint on Thursday by the Akbayan party-list group against Ducut in the Office of the President for alleged “gross neglect of duty and incompetence” has given rise to the possibility of preventive suspension.

But since administrative proceedings take time, “voluntary resignation is an option,” Communications Secretary Herminio Coloma said Friday, indicating the Aquino administration would not prevent her from quitting should she prefer to leave the ERC.

Akbayan Representatives Walden Bello and Ibarra Gutierrez on Thursday filed a complaint against Ducut, contending that Ducut was liable for gross neglect of duty for not looking after the interest of consumers, which is her duty.

They said Ducut approved the unprecedented rate increase of Manila Electric Co. without finding out if this was justified or not.

They also asked that Ducut be preventively suspended while the charges against her are being investigated.

Asked at a Palace news briefing if  Ducut could voluntary vacate her post, Coloma noted that the ERC was an independent body.

“So she can’t be… removed, but, as you’ve said, there’s the option of voluntary resignation, and I think it’s being looked into by observers,” he added.

Told that House Speaker Feliciano Belmonte had already suggested that Ducut resign instead of waiting for a formal investigation, Coloma said he “respects the position of Speaker Belmonte because he may have sufficient basis from his own perspective.”

As part of due process, Ducut would be given a chance to answer the charges, said Coloma.

“There will now be a process to establish if there’s sufficient basis for the allegations against her. And it’s justifiable that she’s afforded a chance to explain her actions. So far, what we’re hearing is  coming from the opposing side,” said Coloma.

Coloma was more categorical on President Aquino’s detgermination to “act to prevent collusion” among various companies in the power sector.

He said: “To summarize, here are the salient points of the President’s position. No. 1, preparation and contingency planning. He said and I quote: ‘Preparations should have been made for foreseeable events.’ No. 2, prevention and regulation—’Government shall act to prevent collusion.’ No.3, protection of citizen’s welfare—Government will ensure that unjustifiable price hikes are not passed on to and borne by the consumers.”

Coloma recalled that when asked about the simultaneous shutdown of the Malampaya gas pipeline and several power plants late last year that resulted in huge power rate increases, the President said that the shutdown of Malampaya was “not an unusual event [since] it happens every two to three years.”

“There is periodic maintenance required. That’s a… foreseeable event. If you know that your producer of fuel will not be able to produce, then you have to find a substitute. So preparations should have been made for foreseeable events,” said the President.

Coloma also recalled the President saying that “our impression is, there are people who really made a very significant profit from this situation under the Epira (Electric Power Industry Reform Act). There is need to look into possible collusion and abuse of market power; and if there were unjustifiable profits, the ERC can order a disgorgement of these profits.”

Asked then about his personal position, Mr. Aquino said: “My position personally is, if it was a commercial decision that was wrong, government never promised that they will be shielded from their wrong decisions. And it follows, if it was a wrong decision—again let me emphasize ‘if’ [since] the investigation should be concluded first.”

“I think it is incumbent upon us that this situation that greatly affects the welfare of so many of our countrymen, we should know what actually transpired, and what corrective actions should be undertaken to address that situation,” Coloma said, again quoting Mr. Aquino’s position. “The President is determined to get to the bottom of what really happened and to prevent this from happening again.”

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