Masinloc mystery deepens

Picking up from where we left off, the Energy Regulatory Commission issued a statement on the controversy. ERC categorically denied that its Resolution No. 21 was meant to open a window for YNN and Meralco to sign a sweetheart deal without the benefit of public bidding.

For now we can probably take their word for it. But the timing of their suspension of the public bidding guidelines remains uncannily suspect! Why so? Because our sources tell us that right this very minute, there is a flurry of activity inside Meralco with the top honchos rushing a Power Purchase Agreement for YNN.

Further feeding this suspicion is the fact that in spite of the public outcry, Meralco has yet come out to categorically confirm or deny whether or not it is considering to give YNN a supply contract.

Meralco’s management should know by now that giving YNN a contract without bidding (as a result of Resolution 21) would lead to them being seen as an active party in the conspiracy against true public interest.

Even our coffee shop friends find it bizarre that Meralco would even consider giving YNN a supply contract given the oversupply in the Luzon Grid isn’t about to leave Meralco powerless.

But one thing for sure, government doesn’t seem to be part of this conspiracy. Because in the unlikely event it is government pressuring them to sign, then why didn’t government exert such pressure on them to sign a contract with PSALM before the bidding so that they would have attracted more bidders aside from just two Lopez-connected firms?

The proof of the pudding will be seen in the progression of events over the coming weeks.

If a Meralco contract with YNN suddenly pops out then it won‘t be hard to connect the rest of the dots.

No amount of press statements from the ERC or Alcordo will convince the public that this was not done purposely for YNN’s benefit.

Alcordo has embarked on a well-financed media blitz proffering denials that he was in anyway involved with the present YNN controversy. His denials though tend more to confirm rather than diminish his involvement in the affair.

In previous interviews and press releases, the ERC commissioner claims to have inhibited himself from deciding on matters involving YNN and his previous interests. But why did he sign Resolution 21? Did he not consider that his claims of propriety are all debunked by signature on Resolution 21?

Alcordo also claims to have divested himself of his holdings in corporations controlled by Filipino-Chinese businessman Sunny Sun (controlling shareholder of YNN Corp.). If so, may we know to whom he divested?

Talking abut Sunny Sun, my coffee shop friends and other sources say that he left the country and cannot be located for comment. However, there’s still big money on the move behind the scenes to get Meralco to give YNN that much coveted supply contract.

Last night’s discussion with the caffeine loaded industry experts ended with the suggestion that if Alcordo is indeed a man of integrity and one who believes no amount of money is worth soiling his reputation as his press releases and friendly columnists claim, then he should convince his friend Sunny Sun to just give up the highly questionable bid for Masinloc. Giving it up would render all of Alcordo’s pronouncements credible and unquestionable.

Questionable transaction

Whatever happened to the P500-million computerization project of the Bureau of Customs?

That project was supposed to have been completed Dec. 31, 2005 but the scheduled has been pushed back to next year. This project is being undertaken by Unisys Corp., which we’ve learned is the same American contractor for a much-delayed Philippine Ports Authority project and the undelivered Firearms License project of the PNP.

To make share that this BOC project will not be another white elephant, there is an urgent need to create an external audit team that will compare the signed agreement (including the inception report) with the Unisys proposal and the Request for Proposal – Terms of Reference (RFP-TOR).

Customs insiders revealed a marked difference between the signed agreement and the RFP-TOR.

For instance, the RFP-TOR requires that the winning bidder should facilitate and incorporate in their proposal the ISO 9001 certification of the following ports, MICP, NAIA, Batangas and MISTG. However, in the signed agreement, Unisys will now just provide the consultancy service to prepare the ISO certification implementation plan." This shifts the cost burden from Unisys to the government which will now have to spend for the certification of the ports.

Unisys also proposed to transform and showcase the Customs Computer Center (CCC) into a world-class organization not only in its information infrastructure technology but also its building and office design concept. But the inception report now just says "the CCC building will be renovated according to the agreed design and specification with the NPD within the proposed scope."

The company, in its proposal, likewise recommended the renovation of the Port of Manila Formal Entry and Cash Division but the inception report now says that Unisys will just repaint the walls, ceiling and columns, repair ceiling leaks, and remodel existing common computer islands and counters to optimize space.

The bottom line is that Unisys is delivering less than what it originally proposed thereby lowering its cost and increasing its profit margins. But government and the taxpayers will be spending the same nevertheless.

For comments, e-mail at [email protected]