THE House Committee on Energy is now discussing the problem of Olongapo City regarding its power obligations.
Marinduque Rep. Lord Allan Velasco, chairman of the House Committee on Energy said pending before the Committee is 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).
Zambales Rep. Jefferson Khonghun, author of HB 7001, said PUD-Olongapo, owes PSALM P7.33-billion as of August 31, 2022.
Accrding to TWG head and PHILRECA Party-list Rep. Presley De Jesus, 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.
Olongapo City Mayor Rolen Paulino Jr. attributed the drop to possible corruption and gross negligence. He also cited the inadequacy of the city’s current P2-billion budget, which makes settlement of the existing debt impossible.
“Hindi na po namin talaga mababayaran po ‘yan at wala po kaming planong bayaran. Kasi kada piso po na ibibigay namin sa PSALM para rito sa utang na wala naman po dapat, piso po ‘yung nalalayo sa mga eskwelahan natin, na nalalayo sa ospital natin, na nalalayo po sa mga infrastructure na kailangang kailangan natin,” the mayor said.
