Senate to grill FVR over Masinloc deal

http://www.tribune.net.ph/nation/20060802nat1.html

08/02/2006

Former President Fidel Ramos heads the list of those expected to be grilled intensely by senators and congressmen on the alleged questionable sale of P30-billion Masinloc coal-fired power plant in Zambales, as invitation had been served to him for his needed attendance in tomorrow’s Joint Congressional Power Commission (JCPC) hearing.

Ramos’ alleged links with winning bidder YNN Pacific Consortium’s partner Malaysian Ranhill Berhad, had earned him an invitation to the bicameral panel, his third appearance in the Senate so far.

The former Chief Executive, responding to the letter sent by JCPC, confirmed attendance and expressed willingness to shed light on the charges leveled against him, particularly the reported supposed links of his political party Lakas with the Malaysian counterpart ruling party, UMNO.
This early, however, Ramos had denied the accusations, describing as unfounded the supposed UMNO-Lakas links in having the contract to YNN and Ranhill Berhad pushed.

Ramos, along with executives from the Power Sector Assets and Liabilities Management Corp. (Psalm), had been called by the commission to explain recent decisions giving extension to the deadline set for YNN to fulfill its financial obligations, despite opposition from various sectors.
The JCPC is co-headed by Sen. Miriam Defensor-Santiago, a known nemesis of the former leader, and Rep. Alipio Cirilo Badelles.

Calls to ban YNN from the sale of Masinloc is snowballing in the Senate as such recommendation earlier made by Sen. Joker Arroyo is now being backed by minority leader Aquilino Pimentel Jr.
Arroyo, during an interview with reporters, said he intends to insist on this matter, pushing that JCPC members put it to a vote when they convene tomorrow to hear the issue.

This is seen to force Psalm and Malacañang to finally junk the YNN deal and pave the way for the holding of a new bidding for the privatization of the biggest asset of the National Power Corp.

There had been at least three instances when YNN had a default in the handing over its downpayment of $227 million which is 40 percent of its $562 million bid price since its auction in December 2004.

The senator said he would ask the JCPC to put the matter to a vote to “end the YNN-Masinloc privatization fiasco for the truth to be finally known.”

Pimentel urged Malacañang and energy authorities to purge the privatization of the power sector of bogus industry players by immediately terminating the contract of YNN-Ranhill Berhad.

He also sought the rejection of another payment deadline extension for YNN having received of a supposed information on another chance in settling the $227-million downpayment to Sept. 30.

Pimentel noted that the last deadline, which that had lapsed last July 31, is supposed to be “non-extendable”

He said the final cancellation of the purchase contract with YNN by Psalm will spare electricity consumers from the threat of higher power rates that YNN Pacific-Ranhill Berhad are expected to demand in order to recoup the unusually high cost incurred in acquiring the power plant. Angie M. Rosales