Ombudsman files graft vs ex-DOE chief Cusi, 4 others

MANILA, Philippines — Former Energy secretary Alfonso Cusi and four other former officials of the Department of Energy (DOE) were charged with graft by the Office of the Ombudsman in connection with the allegedly railroaded approval of the sale of substantial shares in the Malampaya gas project to a company owned by Davao-based businessman Dennis Uy in 2019.

In a press statement issued yesterday, Partido Demokratiko Pilipino (PDP) confirmed that a case of graft has been filed by the ombudsman against Cusi and other former DOE officials.

“The Partido Demokratiko Pilipino (PDP) confirms that a case involving the Malampaya gas project has been filed with the Sandiganbayan against – among others – PDP acting chairman and former Energy secretary Alfonso G. Cusi,” PDP spokesman Ferdinand Topacio, said.

“It must be emphasized that this is the same case that was previously dismissed by the Office of the Ombudsman, which found no evidence of wrongdoing on the part of Sec. Cusi,” he added.

Topacio said the ombudsman’s reversal of its previous resolution is the subject of their camp’s pending petition for certiorari before the Supreme Court.

Thus, Topacio said, out of respect to the SC and in adherence to the sub judice rule, the PDP “will not comment further on the merits” of the case.

“Suffice it to state that the PDP affirms our continued belief in the innocence of our acting chairman and reaffirms our faith and confidence in his leadership and abilities to lead our party during these trying times,” he said.

The ombudsman has yet to respond to requests for a copy of the charge sheet.

A record from the ombudsman’s Office of the Special Prosecutor showed that a case of violation of Section 3 (e) of Republic Act 3019, or the Anti-Graft and Corrupt Practices Act was filed against Cusi, former Energy undersecretaries Donato Dionisio Marcos and Robert Biron Uy, assistant secretary Leonido Jimenez Pulido III and director Cesar Gaba dela Fuente III.

The record showed that the case was filed at the Sandiganbayan on Aug. 28.

It was in 2022 when the ombudsman started its investigation on Cusi and other DOE officials in connection with the sale of the Malampaya shares.

The investigation was prompted by a Senate committee on energy report transmitted by then committee chair Sen. Sherwin Gatchalian.

Based on the committee report, the DOE supposedly railroaded the approval of the sale of 45 percent interest in the Malampaya gas project of Chevron Malampaya LLC Philippines to UC Malampaya, an indirect subsidiary of Udenna Corp., a company owned by Uy.

The 45 percent shares were sold to UC Malampaya for $545 million.

Gatchalian earlier said the extensive hearings of the Senate committee on energy revealed several irregularities in the DOE’s approval of the sale of the Malampaya shares.

For one, the senator said, it was admitted by Cusi during the hearing that UC Malampaya failed the financial test, but the DOE still proceeded with endorsing the sale of Chevron’s 45 percent Malampaya shares to the former.

Gatchalian said it was also revealed during the hearing that UC Malampaya failed to submit its audited financial statements before the sale was approved.
He pointed out, as the DOE-sanctioned deal states UC Malampaya would rely on earnings from Malampaya operations to pay for its 45 percent share, the DOE should have ensured first that the company has the financial capacity to sustain operations and to conduct further exploration.

It was earlier reported that Udenna also bought another 45 percent of Malampaya shares held by Shell Philippines Exploration B.V. for $380 million, making the Dennis Uy-led company the holder of 90 percent shares in the Malampaya natural gas project.

In 2022, the ombudsman dismissed the graft complaint against Cusi and the other respondents for supposed insufficiency of evidence.

In 2024, however, it reversed its earlier decision and said there was probable cause to indict Cusi and the other respondents for graft. This prompted Cusi to file a petition for certiorari before the SC, seeking the nullification of the ombudsman’s 2024 resolution.