Lawmaker slams Leviste for ‘ghost’ solar projects

MANILA, Philippines — From alleging that lawmakers involved in ghost projects, Batangas 1st district Rep. Leandro Leviste has seemingly found himself in the middle of one.

Leviste is currently under fire for his Solar Philippine Power Project Holdings Inc. (SPPPHI) company, which he sold after being granted a 25-year franchise by Congress.

“As far as I’m concerned, if you sold the franchise that Congress gave you and you just want to escape responsibility on your obligation by reneging on your promise, then it’s no different from what we call ghost projects,” Lanao del Sur 1st district Rep. Zia Alonto Adiong said.

The Department of Energy (DOE) slapped a P24-billion penalty on the company for non-fulfillment of its obligations.

Leviste, son of incumbent Sen. Loren Legarda, admitted owning SPPPHI during an interview with “On Point” on Bilyonaryo News Channel.

“Actually, I think the reason why I can speak openly about DPWH (Department of Public Works and Highways) is that I don’t need to be corrupt. And I refuse to receive any salary from Congress or MOOE (maintenance and other operating expenses) or any other extra. And I have fully disclosed this in my SALN (statement of assets, liabilities and net worth),” he said.

“I also refrain from any potential conflicts involving this (SPPHI),” he added, acknowledging officially on record that SPPHI was penalized by the DOE for failing to fulfill its commitments to produce 12,000 megawatts of electricity.

Adiong, chairman of the House committee on suffrage and electoral reforms, and a member of the House committee on energy, explained that a franchise granted to companies and individuals cannot be just sold to anybody.

“First off, the grant of franchise is not a right, it’s a privilege granted to the one that is being given the franchise. So, it simply means it’s a state right. You cannot sell it,” he warned, noting that should such circumstances arise, there is a protocol that should be strictly observed.

“Under the law, if there’s a merger or selling or transfer of any of the controlling stocks of a company that was granted to operate under this franchise, then it should first notify the House of Representatives. That’s very clear in the law. So, it’s really a violation,” Adiong stressed.

Existing provisions require Congress to be notified first if there is a merger, transfer or sale involving controlling stocks of a franchise holder, with Adiong stressing that such a move changes the identity, responsibility and capability of whoever is expected to operate under that privilege.

Once ownership and control shifts, Congress has a duty to reassess who is effectively holding the franchise, whether the new structure still meets the intent of the grant and whether accountability is being preserved.

The Solar Para Sa Bayan Corp. (SPBC), one of Leviste’s companies in the power sector, was awarded a congressional franchise through Republic Act 11357 in 2019 to construct, install and operate solar-powered microgrids in remote areas and far-flung and off-grid communities.

Leviste filed a civil libel complaint against Presidential Communications Undersecretary Claire Castro, accusing her of spreading false claims that he illegally sold the franchise of SPBC. He is seeking P100 million in moral damages, P10 million in exemplary damages and P1 million in attorney’s fees.

Last week, the DOE imposed a P24-billion fine on SPPPHI, the parent firm of the solar business linked to Leviste, for allegedly failing to generate power committed under more than 30 government service contracts.

Leviste, however, rejected the claim, saying the projects could not move forward because they were not issued permits to proceed.

He said the franchise of SPBC was automatically revoked and rendered moot in 2022 after the DOE failed to issue implementing rules. He added that the company he sold to Meralco was SP New Energy Corp. – which had no franchise.