PSALM refutes SPPC’s claim that it learned of its payables from media

28 Feb 2020

The Power Sector Assets and Liabilities Management Corporation (PSALM) transmitted monthly invoices to San Miguel Corp.’s South Premiere Power Corporation (SPPC) and sent a number of demand letters, contrary to SPPC’s allegations that it did not receive any.

Monthly billings sent to SPPC as Ilijan Independent Power Producer Administrator reflect the amounts due to PSALM. SPPC’s underpayments of these billings accumulated and led to PSALM’s claim of P23.94 billion as of 31 December 2019. SPPC cannot feign ignorance of its payables to PSALM because it received all the monthly billings.

In addition to the monthly billings, PSALM actually sent many demand letters to SPPC over the past several years. When asked about this specific matter in the House of Representatives during the 26 February 2020 committee hearing, PSALM submitted samples of these demand letters sent to SPPC, particularly the letters dated 09 August 2019, 03 September 2018, and 09 May 2018. There were earlier letters sent to SPPC demanding payment. The specific amounts claimed in these letters were varying because of the different cut-off dates for SPPC’s accountabilities.

Late last year, PSALM filed in court its amended answer with counterclaim against SPPC amounting to P23,677,232,704.00 as of 30 November 2019. SPPC was given a copy of the amended answer with counterclaim.

“Clearly, there is no truth to SPPC’s claim that it only learned about its payables to PSALM through statements released to the media. PSALM’s monthly billings, demand letters and court pleadings all prove that SPPC is aware, or ought to be aware, of its payables to PSALM,” PSALM President and Chief Executive Officer, Irene Joy Besido-Garcia, said.