Energy worries

Talks last week about a supposed government plan to ration gasoline triggered nervousness anew among fuel and electricity consumers. The plan was apparently based on growing uncertainties in the Middle East due to what the West views as “provocative activities” by Iran.

The nervousness is understandable – and is a recurring thing. Every fuel and electricity consumer knows that more than 90 percent of the energy that runs our cars and electric appliances are imported. Every little commotion in the regions from where we buy them reminds us of the economic stranglehold that imported energy sources have on us.

The usual reaction is, what is government doing to free us from the economic stranglehold?

The same question, we recall, popped up late last year as power consumers reeled under successive electricity rate hikes following oil price hikes worldwide.

In fairness, there is a plan in place by the Aquino administration to lessen the power sector’s dependence on both imported fuel and coal. PNoy himself has underscored time and again that he is determined to raise the share of renewable energy sources – such as hydro, wind, solar and biomass – to the overall power supply of the country.

In fairness, too, the public knows that the Energy Regulatory Commission (ERC) has been doing its best to finish the process of determining the appropriate rates at which renewable energy can be integrated into the overall power supply picture. The completion of the process is needed to widen the door for the entry of investors to the renewable energy sector.

Therefore, power consumers who feel that the process, which began a year ago, may have been taking too long are advised to be more patient. The ERC does much of its work through a series of public hearings and its officials are mandated to listen to all sides. Understandably, there are interests which are very vocal against the ERC process and who may find benefit in letting the process drag.

Our media colleagues covering the energy beat attest that the ERC has been conducting hearings religiously. Adversaries of renewable energy, however, have reportedly asked for many postponements and are now reportedly asking the Court of Appeals for a temporary restraining order against the ERC.

This may further delay the ERC process, but it is not at fault.

Again, in fairness to the ERC, it is up against a formidable adversary in the group Foundation for Economic Freedom (FEF). The group has emerged as the most vocal opponent of PNoy’s renewable energy advocacy. Last year, questions have been raised how a group calling for economic freedom would go against an energy program that harnesses indigenous, sustainable and environment-friendly sources.

Well, maybe, the ERC is just as puzzled.

Of lamp posts and sacrificial lambs

Former officials and engineers of two major cities in Cebu are subjects of separate graft cases before the Sandiganbayan on the alleged overpriced lamp posts that were installed four years ago in time for the 12th ASEAN Conference held in Cebu in 2007.

Reports are rife that a preventive suspension might be issued by the graft court anytime soon against some of the personalities allegedly involved in the case that stemmed from the allegedly anomalous beautification project.

The local officials being charged said in their defense that they were not parties to the project or to the contract, and that their towns happened to be merely beneficiaries of that National Government-initiated venture.

Apart from the local officials and their city engineers, also charged were the key officials of DPWH Region 7, and the project contractors.

It was learned that the project was an undertaking of the Department of Public Works and Highways (DPWH) headed by then Secretary Hermogenes Ebdane Jr. in preparation for that international conference. Funding for this project was sourced from the Motor Vehicle Users’ Fund as indicated in the July 6, 2006 memorandum to Road Board executive director Rodolfo Puno by Ebdane.

The defendants indicate that the project was entirely a National Government project with the bidding process – project identification, pre-bidding conference, actual bidding and procurement process, the award and the contract signing –undertaken by the DPWH.

The DPWH, also an accused in the cases, even confirmed that the request for an authority to bid and implement, including approval of plans, program of works, approved budget, award and contract exemption from D.O. No. 66, was approved by Ebdane himself.

What was the basis then of the complaint against the local officials? One of the local executives charged in the case merely affixed his marginal note on the proposed project plan saying “noted”. They call the project plan as Program of Works and Estimates (POWE), which under Republic Act No. 9184, is still subject to review and change, if necessary by the Bids and Awards Committee of the concerned government agency where the Technical Working Group, under the law, is responsible for scrutinizing and approving the plan.

In the case of one of the two involved cities, the local government reportedly received a copy of the POWE from DPWH for their signature only and not to prepare and evaluate them.

In a nutshell, the defendants made it clear that: they were not the source of the funds for the lamp post project; they did not sign a MOA with the DPWH-7 in order to implement the project; they were not party to the pre-bid conference; they were not involved in preparing the approved budget contract (ABC); they were not party to the pre-qualification bid; they did not conduct the bidding; they did not award the project to the winning bidder; they were not party to the contract; they did not implement the project; they were not party to the inspection and have not accepted the project and did not pay for the lamp post project.

The contractor for the project was not paid by the DPWH after then Ombudsman Merceditas Gutierrez ordered a stop payment when the complaint was filed before the Ombudsman Visayas.

Supporters of the defendants believe that this is just another political play of the political opponents of some of the accused. This is the suspicion since the complainant is an ally of the political opponent of the some of the defendants. 

On the other hand, whatever happened to the order of Gutierrez to investigate the possible involvement of DPWH top officials led by Ebdane, Undersecretary Salvador Pleyto, and Assistant Secretary Rafael Yabut to the anomalous transaction?

Ombudsman Visayas, in its May 4, 2009 Supplemental Resolution as approved by Ombudsman Gutierrez, reiterated the investigation on the alleged involvement of said DPWH Central Office officials for using an alternative method of procurement. To date, nothing has come out from the Ombudsman Central Office about its investigation on the alleged involvement of said DPWH officials.

Perhaps, the Sandiganbayan has its own way of spotting the right culprits and would not allow any sacrificial lamb to suffer.

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