THE Department of Justice yesterday defended
the award of the $3.95 billion assets of the National
Transmission Corporation (Transco) to private consortium Monte
Oro in the light of allegations that Diosdado "Buboy" Macapagal
Jr., a brother of President Arroyo, is connected with the firm.
Justice Secretary Raul Gonzalez said
Macapagal was just a "nominal" member of the Monte Oro board.
"Assuming that he participated, it’s unfair
that just because he is the brother of the President, he will be
deprived of joining (the auction). He’s a legitimate
businessman," said Gonzalez.
He said that unless Macapagal has a
controlling interest in the firm, there is no conflict of
interest.
"They (Monte Oro) were the highest bidder.
That allegation of ‘lutong makao’ must be substantiated. That is
unfair to the PSALM (Power Sectors Assets and Liabilities
Management Corp) which is basically headed by the Secretary of
Finance. What is important there is that the PSALM Board
provided for a floor price, a minimum, but the offered bid of
the winning bidder was very much more. If that was lutong makao,
they will not offer a price dahil sigurado na silang ang
mananalo," he said.
Monte Oro, together with the State Grid Corp
of China and the Calaca High Power Corp, offered $3.95 billion
to operate Transco, the biggest privatization on record so far
of government power assets.
Gonzalez said the deal was awarded to Monte
Oro on the merits of its capacity to operate Transco and not
because of the personalities behind it.
He said that a legal opinion of the DOJ was
not necessary since the department was part of the bidding
process all along.
Sen. Jamby Madrigal has alleged that
Macapagal is somewhat connected with Monte Oro, whose senior
partner is Enrique Razon, treasurer of the Team Unity ticket in
the last May elections.
Malacañang dismissed allegations that it was
party to the award for the 25-year concession of Transco.
"The Palace has nothing to do with the
awarding of bids in the power industry. The bidding was
conducted fair and square regardless of who wins," presidential
management staff head Cerge Remonde said.
He said the bidding for the Philippine
National Oil Co.-Energy Development Corp. (PNOC-EDC), which was
won by Red Vulcan Holdings Corp. of the Lopez group, was also
fair even if the group is perceived to be not sympathetic to the
Arroyo administration.
Cabinet Secretary Ricardo Saludo also
defended the sale of Transco, saying there was a $45 -million
difference between the winning bidder and San Miguel, the losing
and only other bidder.
Finance Undersecretary Gil Beltran said
government is selling its highly-prized assets such as the
Transco and the PNOC-EDC as part of its shift to another focus,
which is the propagation of bio-fuels.
He said government could balance the budget by 2008 without
having to sell its assets, but at the cost of reduced spending
for services. – Evangeline de Vera and Regina Bengco
