The House Committee on Energy chaired by Marinduque Representative Lord Allan Velasco convened and held a Technical Working Group (TWG) meeting to discuss House Bill 7001, which seeks the condonation of all unpaid debts, including interest payments, Value Added Taxes (VAT), and other charges on power bills that the Public Utilities Department (PUD) – Olongapo City owes to the National Power Corporation (NPC) and Power Sector Assets and Liabilities Management Corporation (PSALM).
Committee vice-chairperson and Zambales Representative Jefferson Khonghun, the author of HB 7001, in his explanatory note for the bill, stated that the PUD-Olongapo, as of August 31, 2022, owes PSALM is P7.33-billion.
“The meeting seeks to address the swelling debts of the Public Utilities Department-Olongapo and come to an agreement on what is suitable and advantageous for the people of Olongapo City.”
TWG head and PHILRECA Party-list Representative Presley De Jesus stated that the meeting seeks to address the swelling debts of the PUD-Olongapo and come to an agreement on what is suitable and advantageous for the people of Olongapo City.
NPC and PSALM expressed support for HB 7001. However, Department of Finance (DOF) Privatization and Corporate Affairs Group (PCAG) Director Joanna Castillo said the department cannot allow the proposed condonation, seeing the condonation as setting a bad precedent for other companies.
PSALM Corporate Atty. Reeva Viado took note of the steep drop in PUD-Olongapo City’s collection rate, from 35.39 percent from 2009 to 2013, to only 3.33 percent from 2014 to 2023.
Olongapo City Mayor Rolen Paulino Jr. attributed the drop to possible corruption and gross negligence.
Paulino also cited the inadequacy of the city’s current P2-billion budget, which makes settlement of the existing debt impossible.
“Kada piso po na ibibigay namin sa PSALM para dito sa utang na wala naman po dapat.”
“Hindi na po namin talaga mababayaran po ‘yan at wala po kaming planong bayaran. Kasi kada piso po na ibibigay namin sa PSALM para dito sa utang na wala naman po dapat, piso po ‘yong nalalayo sa mga eskwelahan natin, na nalalayo sa ospital natin, na nalalayo po sa mga infrastructure na kailangang kailangan natin,” he said.
Khonghun expressed his agreement with Paulino’s position, stating that it is unacceptable to settle an obligation that was mismanaged by the previous Olongapo City local government.
He also urged the DOF to reconsider the grant of amnesty to PUD-Olongapo City.
The TWG meeting was suspended temporarily while DOF prepares and submits a position paper on the matter.
