AFTER a failed bid process, the Power Sector Assets and Liabilities Management (PSALM) Corp. is set to rebid the decommissioned 850-megawatt Sucat thermal power plant to interested investors.
PSALM’s move came after its employees questioned the authenticity of documents submitted during the bidding process.
PSALM President Emmanuel Ledesma Jr., however, did not disclose why the first bidding failed. The only thing he confirmed was the offering anew of the decommissioned Sucat facility to interested bidders.
In March, Genetron International Marketing submitted a winning bid of P602 million for the decommissioned Sucat plant. With this, Genetron was required to submit a performance bond amounting to P301 million after the issuance of the certificate of effectivity.
But PSALM employees alleged that Genetron submitted a fraudulent performance bond in the form of a standby letter of credit supposedly issued by JP Morgan Chase Bank.
JP Morgan, however, said in a letter to PSALM that the performance bond was not authentic and the bank has no liability on the terms of the said performance bond.
In a petition, PSALM employees alleged that Ledesma failed to take immediate action against the winning bidder.
Ledesma, they added, also withheld critical information to the PSALM board in relation to the issuance of the fraudulent performance bond.
The sale of the Sucat plant was delayed by the inaction of
Ledesma, according to the employees, who claimed that it was only in July 2014 that he acted on the Sucat privatization when he issued the notice of termination of the asset purchase agreement.
They added that Sta. Clara International Corp. got hold of the confidential information that Genetron failed to submit a valid performance bond.
“We strongly believe that Mr. Ledesma has been grossly remiss in his fiduciary duties and obligations as PSALM’s CEO by not delivering on his duties of due diligence and loyalty, and duty of confidentiality,” the employees said in their petition.
The privatization of the Sucat plant is one among the many issues hurled against Ledesma by the PSALM employees.