President Duterte is demanding the immediate resignation of all officials of the Energy Regulatory Commission (ERC) as he vowed to ask Congress to abolish the agency to pave the way for its total revamp.

Duterte made the call following the death of Francisco Villa Jr., chair of the ERC Bids and Awards Committee, over corruption issues in the agency.

“I am demanding that they all (ERC officials) resign,” Duterte announced during a press conference at the conclusion of the 24th APEC Leaders’ Meeting Sunday night.

Duterte said he has in his possession the intelligence-internal report but the content of which and people involved cannot yet be divulged.

“I have read the internal report, the intelligence. Talagang binastos nila ang … (They showed disrespect …) I don’t know, just like in the past. Sinabi ko na sa inyo (I’ve warned you already), I’m just a small town province boy. Ayaw ko talaga yung corruption (I really hate corruption),” Duterte said in a mix of Filipino and English.

“They must resign,” said Duterte, who can no longer wait for his arrival in Auckland where he would be making a stopover before proceeding to the Philippines.

Duterte said he has an option to file cases against all of the ERC officials or demand that no money will be appropriated for the agency since the budget hearing is still ongoing. “I can give them zero,” he said.

But, he said, ERC officials have also the choice to resign to spare them of the humiliation of sitting in their offices without their money.

He said this will pave the way for his planned reorganization and renaming of this powerful government agency in charge of regulating the power sector industry, including approvals of electricity rates adjustments.

To reorganize ERC, Duterte said, he will demand Congress to disband the agency.

“I will ask Congress to disband, no more … and or file cases simultaneously when I get back,” he said noting that the source of his intelligence report has the documents to back the charges.

“There is no problem, the lawyers now of government are assessing,” he said.

“They (ERC) just have to pray,” he added.

YES TO REFORM, NO TO ABOLITION

But Senate Minority Leader Ralph G. Recto said the Duterte administration should change the people manning the ERC ‘’but do not abolish the body. Improve it, reform it, but do not dismantle it… Change the software, upgrade the hardware. Then reboot.”

Recto said the ERC must stay to police the electricity market because somebody should blow the whistle on anti-competitive practices in an industry so vital to the nation.

‘’If the power industry is allowed to regulate itself, the consumer is the biggest loser. The ERC functions as a fuse box that trips when price surges happen,’’ he added.

‘’If ever ERC is reformed, then it is by ensuring that its officials are not subject to regulatory capture. On this, President Duterte should appoint known consumer advocates to that body,” he said.

In the wake of the resignation demand, ERC Chairman Jose Vicente B. Salazar is seeking a meeting with President Duterte.

“I am now waiting for the President’s return and will immediately seek out a meeting with him to give him a full picture of the current developments at the ERC,” Salazar told reporters.

He further called for an independent investigation that must be spearheaded by the Commission on Audit (COA) to ferret out the whole truth surrounding the death of the late ERC Director Francisco Villa Jr. and his allegations of corruption at the agency.

He is also supporting probes that shall be initiated by the Senate and House committees on energy.

As of this writing, three ERC Commissioners – Alfredo J. Non, Josefina Patricia M. Asirit and Gloria Victoria Yap Taruc reportedly refused to submit to the resignation call.

“Industry players, meanwhile, have sounded off that calls for massive resignation at the ERC could paralyze the industry; and will have long-term chilling effect on the country’s power supply situation.”

Former Speaker Arnulfo Fuentebella, author of the Electric Power Industry Reform Act (EPIRA), said ERC cannot be disbanded because the intent of the law is to institute consistency and predictability in the restructured electricity sector’s regulation – and that the commissioners have fixed terms.

Even lenders are jolted by the President’s pronouncements because this will have implications on the cost recoveries of power projects and the overall financial viability.

HELPLINE SOUGHT

Following Villa’s death, his family urged President Duterte to establish a helpline that would cater to the needs of “harassed” government employees like the former ERC director.

“We, the family of Jun Villa, are deeply and profoundly humbled and so grateful for the attention of President Duterte to shed light over our tragic loss,” part of the statement read.

“We appeal for your help to set up a helpline for government employees undergoing the same kind of stress and harassment in the workplace,” it said.

“We thank the President for taking the first step towards reforms in the power industry which will benefit consumers and the economy,” it added.

Villa allegedly shot himself in his Parañaque City residence on November 9 and left a three-page note written separately in the months of August, September, and October, according to Senior Supt. Jose Carumba, chief of Parañaque City Police. (With reports from Martin A. Sadongdong and Mario B. Casayuran)

Source:
courtesy of MANILA BULLETIN

by Bernie Cahiles-Magkilat

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