Bayan Muna Rep. Teddy Casiño said the Palace is bent on saving private firms YNN Pacific and its Malaysian partner, Ranhill Power Berhad, which twice failed to pay their $227.54-million downpayment for the purchase of Masinloc.
"We should put a stop to scandalous efforts being undertaken by the Palace to legitimize what should have been declared an invalid and immoral transaction," he said.
Casiño, who began his investigation two years ago, said very reliable sources informed him that the government has started pressuring the Lopez-controlled Manila Electric Co. to sign a power supply contract with the two firms involving the Masinloc plant.
"If this is true, then Malacañang is moving heaven and earth to build an unholy alliance with YNN/Ranhill and power distributor Meralco to pull off this anomalous privatization deal at the expense of our sovereignty and the rule of law," he said.
Malacañang should explain the reported "clandestine" meeting between President Arroyo, Meralco chairman Manolo Lopez, when the Chief Executive went to Europe and Spain for an official visit, he added.
Casiño said power consumers will have to bear the brunt of all these secret meetings between government and private individuals.
"These maneuvers will not come cheap, especially on the aspect of higher electricity rates," he said.
"There’s no such thing as free lunch. Sobrang concessions na ang binibigay sa YNN (Too much concessions have been given to YNN). Enough is enough. Legal actions are appropriate."
"I hope Meralco does not get pressured because it is in the best interest of its consumers that it should not make a deal."
Earlier, Casiño said Malacañang and finance officials are "playing naïve" over the botched privatization of Masinloc. Casiño has been calling for the blacklisting of YNN Pacific and Ranhill Berhad, after they twice failed to honor their financial obligation to the government, in violation of the purchase agreement.
In 2004, the two firms won the bidding for the Masinloc power plant, when it gave the highest bid for $562 million.
However, they failed to pay the required up-front fee of $227 million, or 40 percent of the contract price, despite two extensions.
Casiño said the government, through the Department of Finance and the Power Sector Assets and Liabilities Management Corp. (PSALM), should rescind the contract with the two delinquent firms.
"There being a material breach of the contract, the next logical step for PSALM and Malacañang to do is to cancel the contract, collect the penalties thus incurred and not to extend the deadline," he said. — Delon Porcalla