New Napocor bid committee formed

President Arroyo created yesterday a special committee to be chaired by Finance Secretary Jose Isidro Camacho to hold a public bidding on the reinsurance of properties of the National Power Corp. (Napocor), which are insured by the Government Service Insurance System (GSIS) under a $10-billion contract.

Presidential Spokesman Rigoberto Tiglao said the bidding will be witnessed by a resident auditor of the Commission on Audit at Napocor.

"Only private insurance brokers duly registered to transact directly with Lloyd’s of London, or rated in accordance with internationally accepted standards, shall be qualified to participate in the bidding process," he said.

"All qualified domestic insurance companies will also be allowed to participate in accordance with their financial and technical capabilities and resources," he added.

Tiglao said the special committee is mandated to hold an open, competitive and transparent electronic bidding process.

"The President has tasked the committee to convene not later than Sept. 14, 2001 and to award the winning bid at least 15 days before the renewal date of NPC’s insurance coverage," he said.

Tiglao said the voting members of the special committee are: the GSIS president and senior vice president, and the secretary of energy and Napocor president.

Napocor has accused GSIS of failing to release it claims and that the government-owned insurance firm might have been misusing its insurance premiums.

Napocor president Jesus Alcordo said they had received only $75,000 from the GSIS out of the $1.5 million advance partial payment for claims arising from damages wrought by Typhoon "Loleng" on Oct. 28, 1998.

However, GSIS president Winston Garcia said the claims are waiting to be distributed but Napocor has not submitted the required documents.

Tiglao said under Republic Act 656, as amended by Presidential Decree 245, a General Insurance Fund was set up under the administration of the GSIS.

All government agencies, commissions, boards of government-owned or controlled corporations are required to insure their properties against insurable risks with the General Fund and pay their premiums, which shall not exceed those collected by private insurance firms, he added. — Paolo Romero