Senator Win Gatchalian and the Senate Committee on Energy, where he sits as chairman, will dig deeper into allegations of constitutional violations that the National Grid Corporation of the Philippines (NGCP) committed with respect to its concession and franchise agreements.
The Senator warned that the NGCP’s license can be revoked if proven that the agency has violated the constitution.
Gatchalian said there were many violations especially by foreigners who were in critical positions like management and executive positions.
He also said the audit would prove there were violations.
“It is important to have a process to audit, inspect and check on their documents. If it’s proven that they have violations, especially of the Constitution, we can revoke their franchise,” said Gatchalian.
Senators questioned NGCP officials on Monday’s Senate hearing over its refusal to let the National Transmission Corporation (Transco) and the Department of Energy (DOE) conduct an audit on its operations amid concerns that it is controlled and operated by China through State Grid Corporation of China (SGCC).
In the next hearings, Gatchalian said he wants to determine the compliance of NGCP’s other constitutional mandate under its franchise, such as going public through an Initial Public Offering (IPO).
The lawmaker pointed out that the NGCP should have already commenced with its IPO, especially after its ten-year deadline has lapsed last December 19. Gatchalian explained that the IPO delay is depriving Filipinos of their fair share in the public utility.
He estimated that the public would have received around ₱33.98 billion in dividends or 20% of NGCP’s total cash dividends in the past nine years had there been an IPO at the start of NGCP’s operations.
“The NGCP’s governance will be more transparent if only the IPO has been launched on time,” he said./STACY ANG