The Power Sector Assets and Liabilities Management Corp. (PSALM) has sent out final letters of demand for payment to 14 firms with long-overdue obligations totaling P1.931 billion.
In the final demand letters sent by PSALM President & CEO Atty. Irene Besido Garcia and Vice President for Finance Lourdes Alzona, the firms were given 10 days from receipt of the demand to pay their arrears.
Garcia said PSALM will be constrained to take legal steps against any of the firms that fail to heed the final demand and pay their overdue obligations.
Garcia vowed to run after these companies that failed to settle their arrears with NPC and PSALM. Garcia said: “For years, these companies have evaded the collection efforts of NPC and PSALM, causing extreme prejudice and serious damage to PSALM and the government. Under President Duterte’s Administration, there are no sacred cows. We will not hesitate to file cases against these firms and their officers if the arrears are not paid soon. We need to protect electricity consumers who end up subsidizing the cost of these firms’ nonpayment.”
The entities with long-overdue obligations include a hotel, a state university, a local government unit (LGU) and a polyethylene plant.
Their outstanding obligations include, among others, unpaid power bills, deferred accounting adjustments, unpaid automatic cost recovery mechanism charges, value-added taxes (VAT), interest payments and penalty interests, which PSALM has been claiming from them through previous demand letters.
Finance Secretary Carlos Dominguez III, who chairs PSALM’s board of directors, and Energy Secretary Alfonso Cusi, who is ex-officio board member, were furnished copies of the final demand letters.
The NPC Alliance Corp. (NPCAC), a polyethylene plant located at the PAFC Industrial Park in Mariveles, Bataan, has the largest sum of arrears amounting to P611.36 million covering over 10-year period. The demand letter for NPCAC was addressed by PSALM to the firm’s president-CEO Amir Hatami Ramsheh and its treasurer, Homayoon Izadi.
The Laguna-based Canlubang Sugar Estates (CSE), with Jose Ramon Yulo as president and Jose Quiros as chairman of its board, has an outstanding obligation of P517.56 million covering a period of over 10 years.
PSALM also sent a final demand letter to Abra Electric Cooperative, Inc. with an outstanding obligation amounting to PhP505.32 million covering a period of over three years.
The Philippine Economic Zone Authority (PEZA)-Mactan Economic Zone in Cebu also received a final demand letter for ignoring to pay P74.93 million in arrears covering a period of over eight years.
The Bataan-based Sunrise Paper Production Inc. also received a final demand letter for its long overdue obligation amounting to PhP29.05 million covering a period of over fifteen years.
Clark Power Corp. (CPC) president Victor Santos also received a final demand letter for the failure of his firm to pay P67.10 million in arrears covering a period of over 16 years, while First Bay Power Corp. (FPBC), represented by its president, Cesar Reyes, was also ordered to pay P31.36 million for obligations covering a period of over six years.
The local government of Pantabangan in Nueva Ecija–for the account of the Pantabangan Municipal Electric Services (PAMES)–owes PSALM a total of P38.55 million covering over six-year period. The demand letter was addressed to Pantabangan Municipal Mayor Roberto Agdipa.
PSALM also sent a final demand letter to the Diversified Ecozone Corp. (DEC), through its chairman, Ramon Garcia Jr.; its president, Carlos de Castro; and corporate secretary, Cirilo Doronila, for non-payment of overdue accounts totaling P23.32 million and covering a period of over 11 years.
A final demand letter was also sent by PSALM to Waterfront Airport Hotel and Casino (WAHC), through its president, Kenneth Gatchalian, and its treasurer, Precilla Toriano, for overdue accounts in the amount of P8.46 million covering over five-year period.
The other entities that have received final demand letters from PSALM were First Bukidnon Electric Cooperative Inc. (FIBECO), represented by its general manager, Reynaldo Balaba, in the amount of P10.897 million; Isarog Pulp and Paper Company Inc. (IPPCI) in Albay, represented by its president, Dennis Villareal, P5.251 million; Maria Cristina Chemicals, Inc. (MCCI) Corp. (formerly Platinum Metals Corp), led by its president, Rafael Atayde, P4.99 million; and Mindanao State University (MSU), represented by its president, Dr. Habib Macaayong, P3.313 million.
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