Graft, plunder raps filed vs PNOC officials

HIGH-RANKING officials of the Philippine National Oil Company (PNOC) and its exploration agency were charged with graft and plunder before the Office of the Ombudsman.

Crismel Verano, former director and acting chairman of PNOC- Exploration Corp. claimed that Antonio Cailao, president and chief executive officer of PNOC, and Rafael del Pilar, president of PNOC-EC and brother-in-law of Cailao, amassed wealth and waster P122 million through a bungled sale of coal.

Also charged were Lourdes Gelacio, Jose Sta. Ana, Leocadio Ostrea, Jose Anthony Villanueva and Jose Elijan Santos, all officers of the oil company. The officials are also facing a separate administrative complaint.

Carlos Arguelles, a nephew of del Pilar, was also included in the charge sheet.

Verano said that in March 2009, Cailao wrote to former Energy sec- retary Angelo Reyes that PNOC is participating in the procurement activity for the supply of six lots of coal for the Sual and Pagbilao power plants.

Cailao endorsed the PNOC-EC for the coal transaction and on June 2009, del Pilar informed the National Power Corp. (NPC) their offer to supply Indonesian coal.

The Bids and Awards Committee of the NPC said that it will still evaluate PNOC’s price offer and that the memorandum of agreement shall be discussed if all conditions under the Procurement Law are met.

However, without any assured demand or need requirements, Sta. Ana allegedly prepared and supervised the preparation of a coal supply agreement with Wilson International Trading Pte. Ltd. for the purchase of coal for the Pagbilao coal-fired thermal power plant even if there was no written agreement with NPC.

The coal supply contract bound Wilson to sell coal to PNOC-EC for the Pagbilao power plant.

“Even if no company was in need of coal at the time, respondents in conspiracy with each other still pursued its sales contract for the delivery of coal for personal gain and benefit,” Verano said.

In September 2009, M/V Austin delivered 69,911 metric tons of coal but the NPC refused to accept the shipment because the delivery window period for the coal shipment was anytime between October 21 and 30, 2009.

“Likewise there was no signed coal supply contract yet between NPC and PNOC-EC when the coal shipment arrived at Pagbilao,” the complainant said.

In October 2009, another coal supply agreement, notarized but without date of execution, was drawn between PNOC-EC and Top Coal Trading Corp., the marketing arm of San Miguel Corp., for the spot shipment of 65,000 metric tons of coal for the requirement of Independent Power Producer Administration-Sual for $72.40 per metric ton.

However, IPPA- Sual refused to accept the coal due to specification. The shipment was then brought to Asian Terminal Inc. in Batangas for stockpiling.

Verano said that the mismanagement of the coal transaction led to the misappropriation of P122 million.

“It clearly appears that the respondents were participants in a web of conspiracy to defraud the government,” he said.

Verano added that the respondents should also be liable of plunder because Cailao and del Pilar allegedly amassed wealth and transferred it to del Pilar’s nephew.

He claimed that Arguelles maintained foreign and local deposit accounts, a home at Ayala Alabang where del Pilar resides, luxury and sports cars and golf shares. Verano said that Arguelles had no money to acquire these assets.