A new Psalm-ERC-IPP con game?

DIE HARD III
Herman Tiu Laurel
11/4/2011



In 2009, amid looming water and power shortages, alarm bells rang over the threat of El Niño to Mindanao’s hydro-electric plants. At that time, state holding firm Power Sector Assets and Liabilities Management Corp. (Psalm) sold off the state’s Power Barges (PB) 117 and 118 to the Aboitiz group for $30 million.

Following Energy Regulatory Commission (ERC) rules, Aboitiz then submitted these to an “independent third party appraiser” that established their “fair market value or DEPRECIATED replacement value” (emphasis added) at an astounding $84 million--the basis for the ERC’s approved setting of the company’s rate base.

In 2010, the power crisis that was feared by most came in full swing. Virtually every quarter attributed it to El Niño. Cagayan de Oro power expert David Tauli, however, maintained that the shortfall occurred because the National Power Corp. (Napocor) issued a directive that “wasted away the energy it should have stored in Lake Lanao in order to help supply the load in the next six months when there is low inflow to the Lake.” Soon after, other news sources pointed to “overlapping maintenance” schedules as another major culprit.

At the opportune time, Aboitiz happened to be ready with the much needed supply from PB 117 and 118, which it had earlier bought from government--but now at a cost three times higher.

Many Mindanao NGOs, electricity consumer protection advocates, businessmen, as well as House representatives stood up to oppose the said transaction but to no avail. The series of decisions Psalm took, i.e. ordering Napocor to deplete the dams, which created the power crisis; the sweetheart sale of PB 117 and 118 to Aboitiz; followed by the ERC “manna” that turned a $30-million investment to an $84-million rate base in a few months, certainly spelled disaster for Mindanao business and household consumers.

The troika of Psalm, the private sector independent power producers (IPPs), and the ERC must have found the game so easy that they are apparently trying a repeat of the same 1-2-3 formula.

Last Oct. 28, a newspaper item entitled, “Red alert issued on Mindanao grid,” said that the operator of the country’s power transmission grid, the NGCP (National Grid Corp. of the Philippines), had issued warnings of “a generation deficiency caused by (the) scheduled maintenance of some power plants… and the unexpected shutdown or reduced capacity of others.”

Couldn’t Psalm, Napocor, and the ERC, being the expert bodies charged with ensuring reliable and “least cost” electricity to the entire country, have foreseen this? If every year we, the public, are subjected to such sudden shocks of electricity shortages, then obviously these agencies are being remiss in their duties. Shouldn’t they be subject to review, investigation, and complete overhaul?

Worse, such calamitous state of affairs only gives rise to suspicions of a deliberate conspiracy to create a similar situation as the 2010 power crisis in Mindanao.

Just four days before that “red alert” was issued in the papers, I recall this piece (“Psalm to push through with sale of power plants”) that said, “(Psalm) president and CEO Emmanuel R. Ledesma said in a phone interview that Psalm will push through with the planned sale of four diesel-fired power barges… 101, 102, 103, and 104… by December… concluding privatization activities for the year.”

I predict those four power barges will be sold off at the same bargain basement prices (that PB 117 and 118 were) to one or several of the usual power oligarchs who will quickly have them appraised by “independent appraisal agencies” for thrice the amount, which the ERC will then approve as the basis for setting very high rates.

The destination of these power barges will again be Mindanao as no such “red alert” exists for Luzon and other regions; so poor Mindanao will once again be subsidizing the oligarchs’ entire acquisition costs and more from consumers’ power rates.

Just as some Mindanao solons did in 2010 opposing the sale of PB 117 and 118, some of them are again standing up to oppose the sale of the four power barges today. One of them, Rep. Rufus Rodriguez, has threatened to delay, if not stop, the sale as it would “adversely affect Mindanao power consumers.” It still remains to be seen if they will be more successful this time.

The nation is in rage over the blatant abuses committed by the power oligarchs in cahoots with the Electric Power Industry Reform Act (Epira)-mandated power privatization and regulatory agencies.

In the past months, in addition to the usual anti-power plunder advocates and NGOs, known business and labor federations have also raised their voices. The latter two were even more aggressive, maybe making up for lost time, and sent their complaints directly to Malacañang.

Unfortunately, the Chief Executive never reared his head to face the issue and had only his spokesperson, that little colegiala-ish know-nothing bimbo, to refer everyone back to the embodiment of “regulatory capture,” the ERC.

Meanwhile, Napocor is set to add more charges to our already bloated bill--another P15 billion for the “missionary grid” on top of the “lifeline rate” and Maximum Average Price (MAP)-translated rates favoring large industrial/commercial users, all subsidized by us residential consumers.

But we shouldn’t fret that these government officials and agencies are taking no heed of the pleas and plaints of the people. The rage will only grow and the final outburst, only greater.

Just this past week, a large nationwide lay organization already reached out to the electricity consumer protection movement to extend its hand in solidarity. This is one clear sign that the groundswell against the electricity plunder and abuse continues to grow; which can only mean that the outcome will be a tectonic shock strong enough to change the Philippine political-economic landscape.

(Tune in to Sulo ng Pilipino/Radyo OpinYon, Monday to Friday, 5 to 6 p.m. on 1098AM; Talk News TV with HTL, Saturday, 8:15 to 9 p.m., with replay at 11 p.m., on GNN, Destiny Cable Channel 8; visit http://newkatipunero.blogspot.com for our articles plus TV and radio archives)

Home taxes, MRT-LRT rip off

CONSUMERS DEMAND!
Herman Tiu Laurel
10/31-11/6/2011

Quezon City Hall has raised the real estate taxes of homeowners by 20%, the city officials try to deceive the taxpayer saying its only 0.05% or P500 for every P100,000 assessed value; but the basic real estate taxes hover from 2 to 2.5% maximum, hence the 0.05% is 20% and up.

This is no small matter when Quezon City real estate prices can range from lows of P3,000 in low end districts to highs of P20,000/sq in New Manila and even P50,000/sqm along EDSA.

Never mind if everyone is as rich as the malls on EDSA, but what about the senior citizen-retirees living on fixed pensions in homes lived in for the past half-a-century and low-income earners who inherited homes from parents granted housing from the time of Quirino or Magsaysay.

They certainly will be foreclosed by City Hall eventually. Is the scheme to foreclose real estate to be privatized as in the previous administration?

A Facelift
Last week, BS Aquino III, a.k.a. PeNoy, announced the allocation of P6.5-billion for
the “facelift” of the MRT-LRT, including the purchase of new coaches.

This is all very well and nice for the commuting public and we welcome it; but as we know for certain the PeNoy administration is intent on privatizing the MRT-LRT operations which it has stated time and again, this will be again another subsidy for the future private owner and operator of the MRT-LRT (presumably Manny Pangilinan’s group again, which has already enjoyed billions in subsidy in its Meralco and Maynilad takeovers) from taxpayer money.

The only way this suspicion can be denied by the present administration then it has to declare unequivocally that with the P 6.5-B infusion for “facelift” the MRT-LRT will no longer be privatized ever. But that is absolutely not going to happen as this administration is nothing but a tool of the plundering “corporats” the whole World is up in arms against today.

Happening so Fast
Many have been taken aback by these issues: Engr. Obet Versola, second-generation Sikatuna resident and among the best informed of citizens: “I didn’t realize this real estate tax hike was coming, it all happened so fast.

“Suddenly it’s been signed by City Hall.”, Obet said. Citizens all over Metro-Manila should be concerned as it is a cue for others cities to follow, as Parañaque has also announced after QC that it will be raising real estate taxes.

“Quezon City has no basis for claiming lack of funds for P180-M yearly special budget for “socialized housing” when it’s supposed to have P6.5-B budget surplus from the Belmonte administration who’s lying, Belmonte or Herbert Bautista who says there’s no such surplus), and has answer COA’s exposé of 3,000 QC ghost employees costing P200-M a year.

“QC has an annual P2.7-M budget, including the mayor’s P500-M pork barrel (plus intelligence, contingency, donation and others hundreds of millions more) and counselors have P44-M each annually.

Cost of Privatization
The MRT-LRT is not losing money on its operations, i.e. on its overhead and other management and operational costs.

They are losing money from financial charges that is the result of the MRT financial and privatization scheme Fidel V. Ramos set up in collusion with the oligarchy groups Sobrepreñas, Ayala, Campos, Ramos and Augustines providing sovereign guarantees on profits based on overstated passenger loads and fare structures.

After taking their fill they cash their options and sold out to the foreign syndicate of Ashmore, Elliot Associates and Goldman Sachs (one of the culprits of 2008 Wall Street crash) which filed a suits against the Philippine government
that it withdrew only upon the latter acceding to pay out $ 800-M taken from DBP
and Landbank and which we have to pay interest and principal for – this is the loss they are constantly harping about.

BS Aquino III is hoodwinking the public with this P6.5-B MRT-LRT “facelift” without repudiating MRT-LRT privatization.

Corpo-Rats Colluding
What is clear in these two cases we are alerting the public to is the collusion between the corrupt global financial corporats like Goldman Sachs and company, the local oligarchs like the original MRT “investors” and the corrupt political bureaucracy both national and local.

This is no different from what the millions of “Occupy Wall Street” and now “Occupy the World” protesters from New York to Athens are marching and raging about. The only reason Filipinos have not started to show similar protest en masse is the decades of fruitless protests here that have led to the protest-fatigue.

But the low batt status will only last so long, the constant explanation and exposé of the abuses will recharge our people and crystallize the focus on the real enemy – the international financial mafia, the oligarchs and the corrupt political leaders.

Conversely, the answer to these new leadership to restore the primacy of the people’s welfare in governance over the rule of greed.

Throw Out the Greedy
Who are these leaders who will hold high the cause of the people?

Look around, who’s speaking out for the people on these issues.

Let’s encourage and support them to pick up the political cudgels.

Some of these people I can name are: Atty. Alan Paguia, who’s always spoken for justice for the people; in the QC real estate tax issue the tandem of Johnny Chang and Rod Kapunan; on the national economic issues the groups like KME (Kilusang Makabansang Ekonomiya); on the public utilities people like mang Naro Lualhati, former mayor of QC Jun Simon leading the QC-ecor, writer Butch Junia, and many others.

Let’s Occupy The Seats of Power and throw out the greedy.

(Tune in to Sulong Pilipino/Radyo OpinYon, Mon. to Fri., 5 to 6 p.m. on 1098AM;
Talk News TV with HTL, Saturday, 8.15-9 p.m., replay 11 p.m., on GNN, Destiny
Cable Channel 8; visit http://newkatipunero.blogspot.com for articles and radio and
GNN shows)

Does P-Noy have the ‘It’ to be Commander-in-Chief?

YESTERDAY, TODAY & TOMORROW
Linggoy Alcuaz
10/31-11/6/2011

Was our Commander-in-Chief absent? Hello! Or, just plain scared or playing games? His “Bosses” as well as his soldiers wondered.

Almost a week had passed from Tuesday, Oct. 18, until the following Monday, Oct. 24, before the whole Nation could feel and sense P-Noy’s actions, orders and direction in the midst of the Mindanao mess.

It was déjà vu. It was also somewhat like that, right after his two foreign jaunts – to the USA and Japan.

Typhoons Pedring and Quiel had lambasted Eastern, Central and Northern Luzon for a whole week.

In Cold Blood
P-Noy’s “Bosses” were drowning in Central Luzon. It was ever so late and slow before they saw and felt P-Noy’s presence on the scene of the disaster.

On Tuesday, Oct. 18, 400 heavily armed MILF’s ambushed 40 Philippine Army Special Forces in Al Barka, Basilan, in a nine-hour engagement they killed 13, wounded 11 and captured six.

Then, in cold blood, they massacred the six.

Because of the ceasefire and the peace talks, reinforcements were restrained from pursuing, capturing and punishing the perpetrators.

Two days later, on Thursday, Oct. 20, 200 MILF occupied a school in Zamboanga Sibugay province. They killed eight soldiers and policemen.

Then 40 MILF ambushed a rubber plantation truck in Basilan. They killed five civilians and 1 one militiaman.

On Sunday, Oct. 23, in far off Sultan Naga Dimaporo, Lanao del Norte, the MILF again killed two and wounded five soldiers.

On Tuesday, Oct. 25, the so called, uncoordinated and isolated “Lawless Elements” had extended their footprint of death to Zamboanga City.

P-Noy’s Sweet Time
While all of these atrocities were happening P-Noy was taking his own sweet time waiting for information and reports, calling meetings, including a Friday, Oct. 21, Command Conference at the GHQ of the AFP in Camp Gen Emilio Aguinaldo.

There, he blamed the soldiers, fired the Special Forces Battalion and Task Force Commanders and maintained the Ceasefire and the Peace Talks, and concocted his convoluted, double talking, hypocritical propaganda line and media spin.

The sweet time of Presidents and Public Officials is not sweet at all when digested by the mass media as well as the public, from elite down to middle classes and masses.

Every time, a sizeable number of soldiers or policemen or civilians are killed by the Muslim rebels, public opinion remembers the “All-Out War” declared and waged by President Joseph “Erap” Ejercito Estrada against the MILF in Central Mindanao from April to September of the year 2000.

It took P-Noy four days to call a Command Conference.

Do Nothing
Meanwhile, the posture was one of “Do Nothing” except to blame the soldiers for getting themselves ambushed, killed and massacred.

Meanwhile, the just-a-month old positive increase in the Pulse Asia and Social Weather Stations poll survey scores reseeded into distant memory.

The Mass Media and Public Opinion reacted violently.

A radio call-in or text-in survey showed a 97% versus 3% preference for the declaration of an “All-Out War” against the Muslim Rebels, in general, and the MILF, in particular.

P-Noy’s Childhood
Aside from the observation by some critics, doctors and observers that P-Noy is mentally disabled, we would like to point out some important experiences in his history since childhood:

1. During the height of Senator Benigno “Ninoy” S. Aquino’s national political career from November 1967 to September 21 – 24, 1972, the most notable exposé and speech delivered by Ninoy was about the “Jabidah” Massacre of March 18, 1968 on the island of Corregidor where anywhere from dozens to hundreds of Muslim recruits/trainees/volunteers for Project Merdeka were massacred by their own superiors.That must have made quite an impression on the eight-year-old Noynoy.
2. On the night of Saturday, August 21, 1971, the CPP/NPA exploded two hand grenades at the Liberal Party’s Proclamation Rally at Plaza Miranda. Ninoy was the only top LP official (He was the LP Secretary General.) or candidate who was not yet on the stage when the bombing occurred. Later that night, he went around to visit his wounded colleagues at several hospitals wearing a bullet proof vest, a helmet and a sub machinegun. A picture of that appeared on the front pages of the major dailies. Again, that must have made quite an impression on the eleven-year old Noynoy.
3. On the night of Friday, September 23, 1972, Ninoy was arrested by Col. Romeo Gatan, Rizal PC Provincial Commander and one of the Rolex 5 at the Manila Hilton on United Nations Ave.He was incarcerated at the MSU, PA Headquarters in Fort Bonifacio and incommunicado at Fort Magsaysay in Laur, Nueva Ecija until May of 1980.
4. When Ninoy was allowed to go to the USA for a triple heart bypass and remained for a Fellowship at Harvard in Boston, Massachusetts, Noynoy remained behind in the Philippines to continue his grade school, high school and college education with the Jesuits at the Ateneo de Manila University.
5. Undoubtedly, the most dramatic and traumatic event to occur in Noynoy’s whole life was the assassination of his father at the MIA on Sunday, August 21, 1983.
6. In a letter written before his return and death to his only son, Noynoy, Ninoy placed his widow and four daughters in Noynoy’s care and charge.
7. From August 21, 1983 until February 25, 1986, Noynoy was his mother, Cory’s, chief bodyguard and security expert. He was also the “Padre de Familia” virtually plucked out of his carefree days at the young and inexperienced age of 23.
8. From February 25, 1986 until June 30, 1992, his mother, Cory’s Administration and Government was racked by numerous Coup Attempts, Plots and Rumors. These were the July 4, 1986 Manila Hotel Loyalist Proclamation of KBL Vice President Arturo Tolentino, the November 1986 “God Save the Queen” “Psy Coup”, the January 1987 take-over of GMA Network by Col. Canlas, the August 27, 1987 RAM Coup (On J. P. Laurel St. Noynoy was ambushed. His lady companion and several of his PSG security were killed or wounded.), the December 1, 1989 RAM-You-SFP Coup that lasted more than a week, the March 4, 1990 Tuguegarao, Cagayan Uprising of Governor, RAM original, PMA Class ’71 and former Lt. Col. Rodolfo “Rudy” Aguinaldo and the October 4 - 6, 1990 Uprising and Agusan del Sur to Cagayan de Oro City Armed Caravan and/or Motorcade of Col. Alexander Noble. She was also the object of Assassination Rumors, Plots and at least one Attempt. This was at the PMA Graduation of March 1987 at Ft. Gregorio del Pilar in Baguio City. The radio controlled bomb in the rafters of the PMA Parade Ground Grandstand, prematurely exploded during a practice graduation cum parade. My wife, Baby, should have been the stand in for Cory during the practice. She was not able to make it. The WAC who stood in for her was killed by the blast.
9. While Cory enjoyed 13 years of a well-earned retirement from 1992 to 2005, she was forced out of her peaceful life briefly by “Jueteng Gate” and EDSA II, and then, permanently by the “Hello Garci” tape and the realization that GMA had cheated FPJ and us in the 2004 National Elections.
10. While, Noynoy enjoyed nine low-profile and uneventful years as a Congressman, and later, three years as a Senator, he carried the burden of his mother’s involvements as well as her bout with Colon Cancer.

Some individuals are strengthened by repeated crises and experiences like the above.

In my case, a slow speed car chase by two PC Metrocom Police Intelligence Service (MPIS, the predecessor of Col. Rolando “Rolly” Abadilla’s MISG.) plainclothes Toyota mobile cars on January 13, 1971, along Juan Luna and Padre Faura Streets in Manila, left me the braver, more confident and fearless, in the face of future physical threats, thanks to Captain Octavio Alvarez and seven Metrocom Troopers, who expended their entire supply of sixteen magazines of .45 cal. automatic and eight magazines of .30 cal. Carbine ammunition on me, my car and my two passengers – SDK Chairman Sixto Carlos and his Comrade and Girlfriend, Christine Ebro.

Other individuals like Noynoy just lose it.

ERRATUM
In the OpinYon Lite edition No. 20 dated Oct. 27 – Nov. 2, 2011, in the column Yesterday, Today & Tomorrow of Linggoy Alcuaz, entitled ‘Don’t take the truth about
ghosts Litely!’

The paragraph: “Tony Quirino was the brother of President Elpidio Syquia Quirino of Vigan, Ilocos Sur. He was the father of Cory Quirino.”

Should read: “Tony Quirino was the brother of President Elpidio Quirino of Vigan,
Ilocos Sur. He was the father of Cory Quirino.”

Alicia Syquia was the wife of President Quirino whose parents were Don Mariano Quirino of Caoayan, Ilocos Sur and Doña Gregoria Mendoza Rivera of Agoo, La Union.