PSALM ADVISORY ON DAMA CLAIMS
Status of Funding and Release of Funds to NPC
16 November 2020
On 28 October 2020, PSALM issued an Advisory on DAMA1 Claims & Interest Cut-off. This is to provide updates on the actions taken to secure the required funding for the settlement of these DAMA claims.
- The Board Resolution on PSALM’s supplemental budget for the payment of DAMA claims has already been circulated to and signed by the members of the PSALM Board.
- On the approval of the Department of Budget and Management (DBM) on the DAMA supplemental budget, all documentary requirements have been prepared and submitted by PSALM. The DBM, in an email on 09 November 2020, conveyed its recommended FY 2020 Corporate Operating Budget (COB) level for PSALM, which already includes the supplemental budget to cover the DAMA claims.
- PSALM has already made a drawdown from its loan facility with the Development Bank of the Philippines as funding for the DAMA claims.
- PSALM has remitted to the National Power Corporation (NPC) today, 16 November 2020, the initial funds for the payment of DAMA claims in accordance with the PSALM Board-approved procedures. PSALM expects the liquidation by NPC of the released funds, in accordance with the rules of the Commission on Audit and the PSALM Board-approved procedures.
- We reiterate that as to the manner and timing of the release of the payments to the DAMA claimants, NPC is the one responsible for the specific arrangements for and scheduling of the release of payments to settle the claims. Any questions relative to the same should be taken up with NPC directly.
For your information and guidance.
PSALM Management
PSALM ADVISORY TO STAKEHOLDERS RE: BILLINGS
FALLING DUE WITHIN THE PERIOD OF COMMUNITY QUARANTINE
06 November 2020
In view of the continued rise of confirmed Covid-19 cases and the ensuing economic disruption therefrom, Congress passed Republic Act No. 11494 entitled Bayanihan to Recover as One Act (Bayanihan 2) in August 2020, which was approved by President Rodrigo R. Duterte on 11 September 2020 and became effective on 14 September 2020. As part of the authorized Covid-19 response and recovery intervention particular to the electric power industry, Bayanihan 2 directed the implementation of a minimum of thirty (30)-day grace period and staggered payment without interests, penalties and other charges, to all payments due within the period of Community Quarantine (CQ) in the entire electric power value chain to include generation companies, transmission utility and distribution utilities.
In compliance with the abovementioned provision of the Bayanihan 2 and the Advisories issued by the Department of Energy (DOE) in its Memorandum dated 23 September 2020 on the subject Advisory on Providing Grace Period to All Power Sector Bills Falling Due During the Period of Community Quarantine (CQ), and by the Energy Regulatory Commission (ERC) dated 29 October 2020 on its... Read More
PSALM ADVISORY ON DAMA CLAIMS & INTEREST CUT-OFF
Role of PSALM in the Settlement of DAMA1 claims
28 October 2020
The role of PSALM is to provide the funding needed to settle the DAMA claims in accordance with the computation validated by the Commission on Audit (COA) and pursuant to the latest Resolution of COA dated 10 September 2020, officially received by PSALM’s legal counsel on 29 September 2020. PSALM was not the employer of the DAMA claimants and had nothing to do with the termination of the DAMA claimants. Since PSALM was not the employer of the DAMA claimants, obviously the employment records of the DAMA claimants are not with PSALM.
NPC being the former employer of the DAMA claimants, will handle the release of the payments to the DAMA claimants. Hence, specific arrangements for and scheduling of the release of payments to settle the claims are matters that NPC will handle, and any questions relative to the same will have to be taken up with NPC.
The DAMA claimants must note that in the preparation of the lists of claimants jointly submitted by PSALM and NPC to COA, PSALM generally relied on NPC to generate the employment details of the DAMA claimants based on NPC’s employee records. The lists of claimants were prepared by NPC based on certain requirements of NPC and then forwarded to PSALM. PSALM then reviewed the lists of the claimants to determine who were those that filed claims with the COA to ascertain compliance with the Supreme Court’s Resolution dated 21 November 2017, which required the filing of petition for money claim with COA. PSALM also shared the lists to the Civil Service Commission to inquire if the names on the list were rehired into any government office or agency from 27 June 2001 to 14 September 2007 or date of retirement. Therefore, if there are any claimants whose names are not found on any of the joint lists of NPC and PSALM submitted to COA, then such matter should be taken up by those claimants with NPC, and not with PSALM, so that employment records can be reconciled with NPC.
PSALM’s Funding Process
The funding for the DAMA claims was not included in the 2020 budget of PSALM because the specific amount was still uncertain until COA issued its latest Resolution dated 10 September 2020 and the validated computation of claims, the latest of which was received by PSALM from COA only on 26 October 2020. In accordance with the rule for government offices that the disbursement or disposition of government funds should bear the approval of the proper officials and it should be made pursuant to an appropriation or approved budget, the approval of the PSALM Board of Directors of the supplemental budget for the settlement of the DAMA claims is absolutely necessary. To disburse any funds for an expense that is not in the budget or in a supplemental budget is illegal.
Thus, upon the receipt of the COA Resolution dated 10 September 2020, PSALM immediately submitted the matter to the PSALM Board Review Committee for review of the supplemental budget to cover the DAMA claims. Thereafter, the matter was endorsed to the PSALM Board of Directors.
Today, 28 October 2020, the PSALM Board of Directors verbally approved the request for a supplemental budget. The next step is for the PSALM Corporate Secretary to prepare the written Board Resolution approving the supplemental budget and circulate the same for the signature of the PSALM Board of Directors (DOF, DOE, DOJ, DBM, NEDA, DTI and PSALM). The duly signed Board Resolution is... Read More
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