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Business

Dark shadow over ERC

SPYBITS - The Philippine Star

The apparent suicide of Energy Regulatory Commission director Francisco “Jun” Villa Jr. has opened up a Pandora’s box of questions about the alleged corruption in the government regulatory body. The 54-year-old Villa, who worked his way up to become head of the ERC’s Bids and Awards Committee, shot himself due to pressure from higher ups to approve procurement contracts and hire consultants without going through proper bidding and procedures, claimed his sister, veteran journalist Charie Villa.

The ERC – a quasi-judicial and legislative body which was created by the Electric Power Industry Reform Act or EPIRA – is supposed to be an independent watchdog that deals with distributors and independent power producers. However, the regulatory agency has been hounded by corruption allegations in the past several years.

It can be recalled that its former chairperson Zenaida Ducut was implicated in the pork barrel scam involving Janet Lim Napoles, with charges filed before the Sandiganbayan for malversation, bribery and graft for allegedly acting as the agent of former South Cotabato Rep. Arthur Pingoy – for which she allegedly received kickbacks from the pork barrel funds that were coursed through spurious non-government organizations or livelihood foundations.

In 2014, complaints mounted for the removal of Ducut as ERC chair over the pork scandal as well as her alleged culpability over the “suspiciously quick” approval of power rate hikes over a three-month period. At the time, allies of the then-Aquino administration asked for the heads not only of Ducut, but also of the entire board which included the niece of former Cabinet Secretary Rene Almendras.

Insiders say the energy sector, which requires very substantial capital investment as power companies plunk in billions even before a power plant becomes operational – is obviously a very “rich” source of corruption. As the agency that has the power to approve or thumb down power supply agreement (PSA) applications, officials can become “vulnerable” to bribery, the insiders disclosed, adding that the simple act of “sitting on paperwork” is enough to generate “overtures” from industry players who are keen to start operations as every day of delay potentially costs millions in lost revenues.

Police recovered three letters labeled as “suicide notes” handwritten by Villa sometime in August, expressing anxiety and fear over losing his job if he did not comply with the orders of his higher ups to approve alleged anomalous contracts. One of the letters said “mistakes” committed by his agency may bring about observations and disallowances by the Commission on Audit (COA), adding his “greatest fear in the Bids and Awards Committee is the AVP by Luis Morelos which the chairman and CEO, Jose Vicente Salazar, chose through a rigged selection system. That will be a criminal act.”

Salazar, the current ERC chief appointed by Noynoy Aquino in July 2015, has been put on the spot by Villa’s suicide letters. But what is more disquieting, however, is the dark picture painted by Villa of government employees “forced” to comply with wrongful – even illegal – orders on pain of losing their jobs. We have also heard many stories about employees being subjected to harassment by their peers for daring to go against the practice of corruption which, unfortunately, continues to run deep in many government offices, involving employees from top to bottom.

Clarifying she is not out to get anybody, Charie Villa said she just wants to bring light to the plight of government employees who are pushed and pressured into compromising their values, feeling like they have no one to turn to or nowhere to go – unable to cope with the anguish and suffering brought about by corruption in the bureaucracy. Villa has asked her brother’s law school batch mates to put up a helpline help government employees who may be in the same situation experienced by her brother.

Energy Secretary Al Cusi has expressed his sympathies to the family of the late ERC director, promising to get to the bottom of the allegations. President Rodrigo Duterte has also ordered a probe on the death of Villa – and demanded the resignation of ERC officials following reports of rampant corruption in the agency, promising that cases would be filed against officials implicated in corruption.

People who are agitating for heads to roll and urging the President to sack the entire ERC board may be in for a major disappointment, however, since officials of the Energy Regulatory Commission, from the chairman down to all four commissioners, have a fixed term of seven years. (In the case of Salazar, his term will expire on July 10, 2022.) Unless of course there is unquestionable proof of wrongdoing, or if the ERC officials suddenly get an attack of delicadeza and decide to hand in their resignation, the same insiders told us.

Koko Pimentel’s suggestion makes sense

An Aquino ally reiterated his proposal to change the name of Libingan ng mga Bayani (LNMB) to “Libingan ng mga Bayani, Presidente at Sundalo,” pointing out that Senate President Koko Pimentel’s suggestion to separate the areas within the Libingan for heroes, soldiers and presidents makes a lot of sense.

After all, there are a number of people buried in the LNMB who are not heroes at all – in which case, people will be free to interpret the appellation attached to those buried in the cemetery, the Aquino supporter elaborated.

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Email: [email protected]

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