No layoffs at Enron Philippines

NEW YORK – Despite its controversial downfall, American electric giant Enron Corp. remains to be alive. That is, in other parts of the world such as the Philippines.

President Arroyo disclosed here over the weekend that Enron Philippines, a subsidiary of Enron Corp., is making money from its operations in the country and is even bailing out its mother company from its huge debts.

She assured Filipino workers of Enron Philippines that they will not be laid off in spite of the closure of Enron Corp. late last year.

Enron Corp. is currently under investigation by the US government after it suffered uncontrollable financial bleeding due to allegedly questionable transactions entered into by its leaders.

"But Enron Philippines is making money," Mrs. Arroyo said after conferring with Energy Secretary Vicente Perez who told her that the subsidiary doesn’t owe the Philippine government any debts.

"They (Enron Philippines) are in fact the ones paying for the obligation of their mother company," she said.

Perez, however, told the President that Enron Philippines is planning to sell its power plants to the National Power Corp. (Napocor) to help Enron Corp. recover partly from its losses.

The power plants were built under a build-operate-and-transfer scheme and Enron Philippines has proven their operation to be immensely profitable.

Perez said Ed Alfonso, the president of Enron Philippines, is now working out initial negotiations with Napocor. "He (Alfonso) might sell if the price is attractive," he said. – Marichu