CHINESE OR PINOY OWNED?
THE House Committee on Legislative Franchises yesterday gave the National Grid Corporation of the Philippines (NGCP) one week to submit a copy of its shareholder agreement amid concerns over China’s significant influence and ownership of the company that operates the country’s power grid.
The panel, chaired by Parañaque City 2nd District Rep. Gus Tambunting, approved a motion by House Deputy Speaker and Quezon 2nd District Rep. David “Jay-Jay” Suarez to issue a subpoena duces tecum to compel the NGCP to produce the document.
A shareholder agreement outlines the rights and obligations of shareholders, the issuance of shares, business operations, and decision-making processes.
The motion came after Surigao del Norte 2nd District Rep. Robert Ace Barbers pointed out that NGCP had not submitted a copy of the shareholder agreement, which was requested by Suarez during the last committee hearing held last December 23.
Barbers described the shareholder agreement as a “very important piece of document that can inform this body as to what legislative actions we can take after the committee hearing.”
“The reason why I feel that document is very important in this inquiry is because we’d like to determine: sino ba talaga ang nagko-control ng NGCP?” Barbers pointed out.
He added: “Is it run, controlled, managed, and operated by the Chinese? Or is it really by Filipinos? This is very crucial, Mr. Chair, because we’d like to determine to what extent foreign incorporators or counterparts influence the management, operation, and control of this corporation.”
NGCP official Lally Mallari explained that the shareholder agreement was also requested by the Senate Committee on Energy but was not provided because the document is “protected by confidentiality” under Section 23 of Republic Act 9285, or the Alternative Dispute Resolution Law.
She said that the agreement is part of an ongoing arbitration case in Singapore involving NGCP, the Power Sector Assets and Liabilities Management Corporation (PSALM), and the National Transmission Corporation (TransCo).
However, Tambunting reminded NGCP that Section 1, Paragraph 2 of the Rules of Procedure Governing Inquiries in Aid of Legislation of the 19th Congress provides that “the finding or pendency of a case before any court, tribunal, or quasi-judicial or administrative body shall not stop or abate any inquiry conducted to carry out a legislative purpose..
He then gave NGCP one week to comply with the subpoena.
