EMB 7 ASKED TO DENY PERMIT FOR COAL-FIRED POWER PLANT
Ludo and Luym Corp. (LLC), owner of the land in Barangay Sawang Calero, Cebu City where a proposed 300-megawatt coal-fired power plant project is set to rise, wants the Environmental Management Bureau 7 to deny the permit application filed by the project’s proponents. LLC, in a letter drafted by legal counsel Negley Villanueva on behalf of stockholders Kelly Luym, Paterno Luym Jr. and the Ludo and Luym Foundation Inc., says Ludo Power Corp. cannot operate a power plant in its property as LLC’s board of directors and stockholders have not authorized the P20-billion project. Stockholders said the area is “devoted only to the pursuit of LLC’s legitimate business.”
Ludo and Luym Corp. says Ludo Power Corp. has no board of directors’ authority LLC stockholders say proposed area for power plant only for ‘legitimate business’
The owner of the land where a 300-megawatt coal-fired power plant project in Barangay Sawang Calero, Cebu City, has asked the Environmental Management Bureau (EMB) 7 to deny the permit application filed by the project proponents.
In a letter to EMB Regional Director Engr. William Cuñado dat- ed March 17, the Ludo and Luym Corp. (LLC) said that Ludo Power Corp. (LPC) cannot validly operate a power plant in their property as it is not authorized by the board of directors and stockholders of LLC.
The letter was drafted by LLC legal counsel Negley Villanueva on behalf of the corporation’s stockholders Kelly Luym, Paterno Luym Jr. and the Ludo and Luym Foundation Inc.
Copies of the letter were also furnished to Cebu City Mayor Tomas Osmeña, Vice Mayor Edgardo Labella and the City Council.
The stockholders lamented that they did not authorize the use of the corporation’s lot for
Luyms said the Ludo and Luym Corp. has not held any stockbrokers’ meeting since 2001, which means the proposed plant could not have been approved.
the P20-billion project as the area is “devoted only to the pursuit of LLC’s legitimate business.”
The Luyms also maintained that the LLC has not called for a stockholders’ meeting since 2001, meaning the proposed plant could not have been validly approved.
They added that a “derivative” suit filed by the LLC against Douglas Luym, et al, is now pending before the Cebu City Regional Trial Court Branch 11 to “to protect the interest of LLC against some of its stockholders who illegally increased the corporation’s authorized capital stock.”
The properties in Sawang Calero are also subject of a Trust Indenture Agreement, which was executed in favor of the Bank of the Philippine Islands and several other banks to secure a syndicate loan of LLC that has now ballooned to P10 billion.
A case against LLC and the Luyms has been filed by the BPI to demand payment for its outstanding loan.
“Should the trial court rule against the individuals claiming to be directors of the LLC, any contract with the LPC will necessarily be invalidated and may result to stoppage of any operation. A shelved power plant project will certainly expose the residents surrounding the plant to toxic and hazardous materials given the nature of its operation,” reads a portion of the letter. /