Home / Business / PSALM to 14 firms: Pay or else

PSALM to 14 firms: Pay or else

July 17, 2019

STATE-RUN Power Sector Assets and Liabilities Management Corp. (PSALM) has issued final letters of demand for payment to 14 entities with long-overdue obligations totaling P1.931 billion.

The firms were given 10 days from receipt of the demand to pay their arrears, based on final demand letters sent by PSALM President and Chief Executive Officer Atty. Irene Besido Garcia and Vice President for Finance Lourdes Alzona.

Garcia said PSALM will not think twice to take legal steps against any of the firms that will fail to settle their overdue obligations.

“For years, these companies have evaded the collection efforts of NPC and PSALM, causing extreme prejudice and serious damage to PSALM and the government. Under President Duterte’s Administration, there are no sacred cows,” Garcia said in a statement on Tuesday.

“We will not hesitate to file cases against these firms and their officers if the arrears are not paid soon. We need to protect electricity consumers who end up subsidizing the cost of these firms’ nonpayment,” he added.

The entities with long-overdue obligations include a hotel, a state university, a local government unit (LGU) and a polyethylene plant.

Among their outstanding obligations include unpaid power bills, deferred accounting adjustments, unpaid automatic cost recovery mechanism charges, value-added taxes (VAT), interest payments and penalty interests, which PSALM has been claiming from them through previous demand letters.

PSALM said the NPC Alliance Corp. (NPCAC), a polyethylene plant located at the PAFC Industrial Park in Mariveles, Bataan, has the largest sum of arrears worth P611.36 million covering over a 10-year period.

This was followed by the Laguna-based Canlubang Sugar Estates (CSE) that has an outstanding obligation of P517.56 million covering a period of over 10 years.

Abra Electric Cooperative, Inc. also received a final demand letter for ignoring to pay P505.32 million covering a period of over three years.

PSALM also sent a final demand letter to the Philippine Economic Zone Authority (PEZA)-Mactan Economic Zone in Cebu with an outstanding obligation amounting to P74.93 million covering a period of over eight years.

The Clark Power Corp. (CPC) also received a final demand letter for the failure to pay P67.10 million in arrears covering a period of over 16 years, while First Bay Power Corp. (FPBC) was also ordered to pay P31.36 million for obligations covering a period of over six years.

The Bataan-based Sunrise Paper Production Inc., meanwhile, owes PSALM a total of P29.05 million covering a period of over 15 years.

The local government of Pantabangan in Nueva Ecija–for the account of the Pantabangan Municipal Electric Services (PAMES)–has a long overdue obligation worth P38.55 million covering over a six-year period.

A final demand letter was also sent by PSALM to the Diversified Ecozone Corp. (DEC) for non-payment of overdue accounts totaling P23.32 million covering a period of over 11 years.

The Waterfront Airport Hotel and Casino (WAHC) also received a final demand letter for overdue accounts in the amount of P8.46 million covering over five-year period.

The other entities that have received final demand letters from PSALM were First Bukidnon Electric Cooperative Inc. (FIBECO) in the amount of P10.897 million; Isarog Pulp and Paper Company Inc. (IPPCI) in Albay, P5.251 million; Maria Cristina Chemicals, Inc. (MCCI) Corp. (formerly Platinum Metals Corp), P4.99 million; and Mindanao State University (MSU), P3.313 million.

Finance Secretary Carlos Dominguez III, who chairs PSALM’s board of directors, and Energy Secretary Alfonso Cusi, who is ex-officio board member, were furnished copies of the final demand letters, PSALM said.

Credit belongs to : www.manilatimes.net

index.php

A&W reports slower sales growth while net income falls short of expectations

An A&W Restaurant in Toronto is photographed on Monday, July 9, 2018. (THE CANADIAN PRESS …