Araneta files graft cases vs top energy officials

Businessman Gregorio Ma. “Greggy” Araneta III has filed a case before the Office of the Ombudsman against Energy Secretary Alfonso Cusi, Philippine National Oil Co. (PNOC) chairman Reuben Lista and other PNOC officials for alleged violations of the AntiGraft Law.

The complaint, filed with the Sandiganbayan in December last year, stemmed from the $1.2 billion Energy City project of Araneta’s Energy Oil and Gas Holdings Inc. (EOGHI) which was supposed to be developed in Bataan.

The project, however, did not push through because the PNOC did not agree to its terms.

The project was supposed to be developed in the property of the PNOC Alternative Fuels Corp. (PAFC) in Limay, Bataan.

Thus on June 19, 2014, Energy City Philippines and PAFC entered into a memorandum of agreement relative to the lease of a portion of PAFC Industrial Park for the project.

EOGHI and PAFC agreed to the lease terms, according to the complaint. “As a matter of courtesy, PAFC submitted the draft of the lease agreement to its parent firm Philippine National Oil Co. (PNOC) for its concurrence.”

But Araneta said in the complaint that PNOC did not uphold the agreement and the lease contract has yet to be executed.

“It has been more than three years since then and the lease agreement embodying the perfected contract of lease has yet to be executed. Despite that, the lease payment for the first year of the lease has already been paid by EOGHI,” according to the complaint.

The failure of the PAFC and/or PNOC to execute the lease agreement in accordance with the agreement has prevented EOGHI from commencing the lease to its continued damage and prejudice, it also said.

PNOC refused to execute the lease agreement. Thus, according to Araneta’s complaint, the respondents have committed violations of the Anti-Graft Law and may be held liable both administratively and criminally.

The complaint further stated that the act of respondents in preventing EOGHI from commencing with the lease is the cause of the injury which EOGHI has suffered and continues to suffer, “quantified in the minimum as follows: P38.64 million deposit made to PAFC in 2015 equivalent to the project annual rent for the first year of the lease and P10 million for professional fees of service providers already engaged and paid for the project.”

Aside from Cusi and Lista, also named respondents were PNOC corporate secretary Czarina Aquitania and PNOC SVP for legal, administration and estate management Graciela Barleta.

Sought for comment, Cusi and Lista said the points raised in the complaint have already been addressed in the past by PNOC.

PNOC said that there is no binding contract between PNOC and PAFC to which PNOC is obliged to honor.

It said the PNOC board is not bound by the decision of the PAFC board to approve an agreement or contract.

“Therefore, even if the PAFC board approved a lease agreement between PAFC and EOGHI, it still has to be approved by the PNOC board to become a binding agreement,” it also said.