Congressional body probes Mirant claim it can sell assets sans gov’t OK

The Joint Congressional Power Commission (JCPC) will start its investigation today on Mirant Corp.’s claim that it need not secure consent from the government before it could bid out the equity shares of its Philippine interests.

The JCPC will make reference to a letter sent by National Power Corp. (Napocor) president Cyril C. del Callar to Mirant chairman and CEO Edward Muller inquiring on the manner of the company’s asset divestment. Muller reportedly answered back stipulating that a government consent is no longer needed in its preferred sale plan to be consummated in its Hong Kong-Asia Pacific unit.

JCPC co-chairman and Lanao del Norte Rep. Alipio Cirilo V. Badelles said the government has expressed serious concern on this matter because Mirant’s preferred buyer could just be any moneyed investor but may not be technically qualified to operate the power facilities.

"This should be a cause of concern because this company is exiting the country and it may just leave us a buyer of its assets that we cannot rely on to run the facilities. When that happens we would be in trouble," Badelles said.

According to Badelles, the oversight congressional body will also weigh on the proposition of Napocor that it can invoke the right of first refusal on the assignability of its energy conversion agreements (ECA) to whoever would end up as buyer of Mirant’s interest in the country.

"The committee would have to probe if the ECAs with Mirant are assignable to any party and if breach of contract is not being committed in the process," the lawmaker said.

He also raised concern that if Atlanta-based Mirant sells its Philippine assets at very high valuation, this may trigger an increase in electricity rates that would be paid for by Filipino consumers over a long time.

The JCPC will also look into reports the employees of Mirant Philippines are being overlooked by its management in this whole exercise, with the parent firm already closing doors for negotiation on bid for separation packages.

He said the JCPC will also look into the issues of the real property taxes of Mirant which remained unsettled and other liabilities/obligations that it may leave or pass on to its successor-investor.

Mirant pays P5-B taxes ahead of schedule

Mirant Philippines paid yesterday, two weeks ahead of the due date, P5.1 billion in stamp duty and withholding taxes on interest and dividends.

Last month, the company also paid P251 million in documentary stamp taxes from a loan that was used to pay existing obligations and the dividend declaration.

Mirant chairman and president Jose P. Leviste Jr. said the company has been among the country’s largest corporate taxpayers in the country since 1999, paying more than P24 billion in internal revenue and local taxes from its Sual and Pagbilao operations and its investment in the Ilijan power plant.

"Paying the right taxes has been a culture in Mirant and we are proud of this. We have conducted ourselves well as a guest of the nation and a partner in its growth," he said.

Beyond fiscal responsibility, Leviste said the company has gone the extra mile to protect the environment largely through a massive mangrove reforestation project in Pagbilao, which will be duplicated in Guimaras, and by providing electricity to more than one thousand barangays.

Yesterday, it donated P5 million to the joint government-private sector project to plant more than a million trees throughout the country and help clean up and restore the mangrove areas affected by the Guimaras oil spill.

Leviste said the payment will go a long way to further strengthen the country’s fiscal position.

The huge payment stems from the dividends given to its parent company, Mirant Corp., as part of the latter’s decision to focus on the US market and sell all its non-US interests located in the Philippines, Jamaica, Trinidad, Curacao and Grand Bahama.