Lawmakers urge government to reveal sale price for Malampaya stake

Two Palawan congressmen urged the government yesterday to tell their constituents and the public in general how much it sold a part of its stake in the Malampaya natural gas project in their province.

Rep. Abraham Mitra denounced the "stealth and the speed" by which the government sold 49 percent of its 10-percent stake in the deep water gas-to-power project to a Korean consortium led by LG International Corp.

"To blaring trumpets, the government’s committee on privatization announced last week that it was approving the sale of the share of Philippine National Oil Co.-Exploration Corp. in the Malampaya proejct. But it forgot to mention the most important thing: The price," he said.

He said PNOC-EC informed the Philipine Stock Exchange before the Holy Week holidays about the sale.

"Again, no price was mentioned. The most important fact in that transaction — the price — was curiously left out. It’s like a man taking a full page ad about his impending marriage without telling who his bride is," he added.

For his part, Rep. Antonio Alvarez said the government should at all times be transparent, especially in deals involving billions of pesos.

He said it is not fair for Palaweños and for the people in general that a part of the national wealth is sold and the price is not disclosed.

He also questioned the sale of a "sure earner" while losing government corporations are being maintained and propped up with subsidies.

Mitra said the government’s refusal to reveal the price is suspicious.

"Without the price, there is no way by which PNOC-EC’s claim that it got a good deal for its shares could be verified," he said.

Last week, Alvarez and Negros Oriental Rep. Jacinto Paras asked the House to investigate the reported sale of the Malampaya shares.

They said the price that was floated, which was about $200 million, was a "bargain price."

The other members of the LG-led consortium are Korea Gas Corp., Seoul City Gas Co. and Dae Sung Industrial.

The Malampaya proejct is a joint venture among PNOC-EC, Shell and Chevron-Texaco. It is said to be worth billions of dollars. Palawan and the towns where the project is situated are receiving a share of its earnings.