House to subpoena ad execin ERC anomaly

MANILA, Philippines - The House of Representatives will summon the advertising executive implicated in the allegedly anomalous infomercial project of the Energy Regulatory Commission (ERC) that reportedly led to the suicide of lawyer Jose Francisco Villa Jr. in November 2016. 

Surigao del Sur Rep. Johnny Pimentel, chairman of the House committee on good government and public accountability, said his committee will be sending its subpoena very soon to Luis Morelos, owner of advertising agency FatFree Inc. 

 “We’ve had two hearings already on the irregularities at the ERC, and Mr. Morelos failed to show up on both occasions, despite our invitations. We will compel him to attend our next hearing,” he said. 

Morelos and ERC chairman Jose Vicente Salazar are under preliminary investigation by the Office of the Ombudsman in connection with the infomercial project, based on a complaint filed by the National Bureau of Investigation. 

Salazar has repeatedly denied allegations that he was behind the allegedly anomalous project, much less the reason why Villa – brother of ABS-CBN executive Charie Villa whose late father (Francisco Sr.) was overall deputy ombudsman – took his own life. 

“We support the complaint filed by the NBI before the Ombudsman. The action appears warranted, so we are all for it,” Pimentel said. “We will have one last hearing, and then we will prepare and submit our committee report for plenary approval.” 

In a hearing last March, House members called for the termination of the congressional investigation involving alleged corruption in the ERC following the suicide of bids and awards director Villa.

The hearings have centered on Salazar allegedly putting pressure on Villa to fasttrack the procurement process for a P300,000 audio-visual project (AVP) as well as the renovation of the boardroom and pest control services.

The Commission on Audit cleared Salazar, reporting that no contract was signed and no government funds were released for the AVP.

Salazar denied knowledge of the procurement process of the projects since the bids and awards committee works independently. He said projects amounting to less than P250,000 are delegated to Commissioner Alfredo Non, who has oversight for financial concerns. 

Steve Riva, Salazar’s chief of staff, testified in the congressional hearing that the go-signal for the said projects were given by the late Villa himself.

 Duterte son backs Salazar

Presidential son and Davao City Vice Mayor Paolo Duterte has announced his full support for Salazar amid his row with the ERC’s four commissioners.

In a recent meeting in Davao City, he told Salazar “not to back down” in the face of an apparent effort to derail the implementation of crucial power sector policies.

He said his father is interested in reforms that can bring down the cost of power in the country and assure the public of a steady and sustainable supply of electricity.

The younger Duterte described the action of the four commissioners to delay the implementation of the Competitive Supply Procurement as “obstructionist and an outright challenge to the President’s aspiration to improve the lives of the Filipino people.”

He said the four commissioners – Non, Geronimo Sta. Ana, Gloria Taruc and Patricia Asirit – are all appointees of former president Benigno Aquino III.

Asirit is a niece of former energy secretary Rene Almendras.

The procurement policy requires power distributors to bid out their power requirements and purchase these at the lowest possible cost. It also prohibits distributors from buying their supply from affiliate power generating companies to prevent so-called “sweetheart” deals. This ensures that distributors will sell power to consumers at cheaper rates. – Delon Porcalla, Jose Rodel Clapano