Ex-DOE official confirms backing bid to sell gov’t stake in PNOC-EC

A FORMER Energy undersecretary said Monday he implemented a directive from the Executive Department and the Department of Energy to sell 5 percent of the government’s stake in Philippine National Oil Co.-Exploration Corp. in 2005.

Eduardo Mañalac, also former president of PNOC, said he was compelled to go along with the directive.

Mañalac made the statement at an online forum organized by the National Youth Movement for the West Philippine Sea in response to a question on whether he had a hand in the sale of the government’s 5-percent stake in PNOC-EC to a South Korean firm.

“The instruction to sell the 50 percent, meaning the five percent, of the 10 percent [government stake in PNOC-EC] came from the government, came from the DOF, supported by the Executive, by the President,” he said.

“And the reason given to sell the PNOC-EC’s share at that time was that, if you remember, PNOC paid a hundred plus million for the 10-percent [stake]. It was loaned. So, what the government was saying was we have to pay that. We have to raise the money,” Mañalac said.

“So, they gave me instructions to sell half of it. Of course, I was against it, but you have to follow, you argue against it, but at the end of the day, you tried to obey the instructions as best as you can,” he said.

He said the sale did not push through when the National Economic Development Authority opposed it.

Mañalac also responded to businessman Enrique Razon Jr.’s statement he brokered the Joint Marine Seismic Undertaking agreement with Vietnam and China, which was declared unconstitutional by the Supreme Court.