Legislative overreach

Members of the Senate are now into approving or rejecting private transactions using conjectures that have been proven false by government and independent experts.

In a complete paradox that he can only fathom, Senator Win Gatchalian appears lost in claiming to have enough evidence that the Department of Energy (DoE) decision to approve the sale of Chevron Malampaya’s 45 percent stake in the natural gas project to Udenna Group of Davao City magnate Dennis Uy was “defective and invalid,” despite having no iota of evidence to back up his claim.

Instead, he offered his opinion “that it is a defective approval, therefore the approval is invalid because clearly there’s a lot of inconsistencies, and any major transaction like this should not lead to confusion.”

The way Gatchalian had the issues figured out gives an idea on who is likely confused, since he had bit too much than he can chew.

Apparently unable to grasp the so-called “farm-in process” which makes the transaction the sole discretion of the members of the consortium, Gatchalian concluded that the DoE maneuvered a new method to approve the deal.

The cited process, however, was the subject of an executive order, basically a law, that allows energy projects to take in new partners.

It was consistent with the earlier declared DoE opinion that the Malampaya transactions are purely private and the government can look into it only as far as the technical capabilities to keep the crucial project running.

Gatchalian is apparently trying to head off the finalization of the deals. The DoE had approved the Chevron sale but the other half of the Udenna deal with Shell Philippines Exploration BV (SPEX) hangs.

The twin deals would have handed to the Udenna units UC Malampaya and Malampaya Energy 90 percent of the energy project in total.

The deal, according to Energy Assistant Secretary Gerardo Erguiza Jr., should have a resolution next month, to the consternation of Gatchalian.

Erguiza said the government wanted “to complete this matter as soon as possible. If it’s just up to us, we have already finished it by this time or perhaps by November at the latest.”

Also delaying the process is the 10 percent partner in the consortium, state-owned Philippine National Oil Company-Exploration Corp. (PNOC-EC), which has withheld its consent to the arrangement.

“As far as I remember, there are two important preconditions — the DoE approval and PNOC consent. We don’t know yet (on the PNOC-EC side), but we are working on that part, on the responsibility of the DoE,” Erguiza explained.

By hijacking the approved deal with Chevron, Gatchalian is aiming also for the scuttling of the agreement with SPEX.

Curiously, DoE officials said a lobby from a big business concern is aggressively trying to wrest the deal using PNOC-EC as conduit.

Of course, senators are more than willing to give the lobby a hand considering the fund raising for the financially-draining political bout next year.

“Senators are more than willing to give the lobby a hand considering the fund raising for the financially-draining political bout next year.

“The way Gatchalian had the issues figured out gives an idea on who is likely confused, since he had bit too much than he can chew.