Alcordo dynasty at ERC?

Industry insiders are now saying that the Energy Regulatory Commission (ERC) is equally responsible for the mess-up in the bungled sale of the Masinloc power plant when it became a willing accomplice to the crime purportedly because of the economic interest of one of its commissioners.

They say the ERC should have written finis to the botched deal voiding Resolution No. 21 that suspended the requirement for public biddings for electricity supply contracts.

Quite a few sectors in fact raised suspicion that the said resolution was issued to enable YNN and Meralco to enter into a sweetheart deal (supply contract) without any public bidding. Its revocation will make the system transparent and beneficial to the Filipino people.

Today, more insiders have less regard for the credibility of the ERC as the government regulatory unit of government with regard to electricity – which seems to have started when it was purportedly infiltrated by hangers on who claim to have strong connections within its corridors of power.

Industry players are also reportedly flabbergasted by the recent appointment of an Alcordo ally in the ERC. So instead of saving what is left of ERC’s credibility, they fear a continuation of capers similar to the Masinloc saga with the appointment of Jose Reyes as commissioner.

Insiders suspect that Reyes may just be Alcordo’s clone. Alcordo was Reyes’ former boss, first at Reynolds Philippines, then at the East Asia Power Corp, then later at the National Power Corp up to the ERC.

When Alcordo put up East Asia Power in the 1990s, he hired Reyes as one of his firm’s top executives. East Asia is the same company that allegedly paid Sunny Sun, the owner of the infamous YNN of the botched Masinloc sale, $3 million as "success fee" for securing a supply contract with Meralco for East Asia’s power barges in Navotas.

When Alcordo was appointed as Napocor president, he also took in Reyes as one of Napocor’s ranking officials.

When Alcorodo was appointed at the ERC, Reyes was also taken in to occupy an important position at the ERC. Obviously Reyes and Alcordo come a long way.

Continuity in ERC policies has been cited as among the reasons behind Reyes‚ appointment. But power insiders are getting worried over the ERC’s concept of continuity. They say it was Alcordo and three other commissioners who signed the controversial ERC Resolution 21 paving the way for secret negotiations between Meralco and YNN for a supply contract for Masinloc, instead of the usual bidding process.

We will just have to wait and see whether Reyes has the independence to do what needs to be done to implement meaningful changes in the power sector or if he will just do his former boss‚ bidding, in the interest of continuity within the ERC and at the expense of the power industry and ultimately the Filipino people.

Hotel chain cries foul

A legitimate and well-respected company which owns and operates numerous hotels nationwide feels that it is being harassed and unfairly untreated.

Three employees of Real Development Inc., the owner and operator of a time-share company called Vacation Club International (VCI) – yes, the same group which owns the Days Hotel chain – have been sued for syndicated illegal recruitment and estafa by a certain Edna San Pedro who they claim was just trying to get back at them for the company’s refusal to cancel her VCI membership and return her P50,000 downpayment.

In their motion for reconsideration to the findings by the Quezon City Prosecutor’s Office, in particular assistant city prosecutor Evelyn Pascua-Lee, that there is probable cause to indict them for the said crimes, they say that the said office committed palpable errors in its findings.

For one, to constitute illegal recruitment, a group of three or more persons, who have no license to engage in recruitment for employment abroad, must have made an offer or promise for a fee employment abroad to two or more persons. In this case, there was only one complainant.

One of the accused was also a mere utility man at Real Development Co. who just happened to be in the office when the Presidential Anti-Illegal Recruitment Task Force raised the office after San Pedro lodged her complaint with said office, they said.

In their motion, it was also claimed that the P50,000 which is claimed to be the money paid for processing of her documents for employment in the US was in fact the downpayment for the VCI shares. And there is proof that there is indeed a share purchase agreement and that the complainant wrote company president James Puyat Concepcion (before the case was filed) wanting to cancel her membership due to alleged misrepresentation by those who sold to her.

There seems to be enough basis for the QC Prosecutor’s Office and the Department of Justice to take a second look at the case in order to make sure that justice is served.

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